Businesses are struggling to determine which goods qualify for a VAT reduction, leading to disagreements over the correct tax rate between buyers and sellers, such as the confusion with industrial fans. The reduction applies to goods and services currently taxed at 10%, excluding specific sectors like telecommunications, finance, real estate, and most mining and special consumption tax items. The reduced 8% VAT rate is applied consistently across all stages—from import to domestic sale—for businesses using the credit method, while those using the direct method receive a 20% reduction in the calculation percentage. This policy is in effect from July 1, 2025, to December 31, 2026. To resolve the difficulties, it is suggested that authorities implement a unified standard or lookup system to clearly identify eligible products.
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.
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