The correct VAT rate of 8% or 10% for goods and services is determined by eligibility groups defined in Decree 174/2025/NĐ-CP. Mr. Nguyen Duong’s company was charged the 10% VAT rate by a supplier for a “metal drive shaft” (code 2814022), which he contested because the product wasn’t listed as an exception in the Decree and should qualify for the reduced 8% rate. The Ho Chi Minh City Tax Department clarified that taxpayers are responsible for their own tax calculations, and the 8% VAT rate applies to eligible, non-excepted goods and services from July 1, 2025, to December 31, 2026. This guidance emphasizes that the reduced 8% VAT applies unless the item is specifically excluded under the relevant appendices of the Decree.
Source: baochinhphu.vn
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "Vietnam"
- Strengthening Electronic Invoice Management in Vietnam: Enforcement, Technology, and Compliance to Prevent Fraud
- Vietnam Amends VAT Law: Higher Exemption Thresholds, Refund Reforms, and Major Benefits for Agriculture
- New Regulations on VAT-Exempt Entities under Decree 359/2025/NĐ-CP
- Electronic Invoices: New Digital Tactics in Tax Fraud and State Revenue Loss Prevention Challenges
- Experts Divided Over $40,000 vs $120,000 E-Invoice Threshold for Vietnamese Businesses
