Vietnam Approves Decrease in Standard VAT Rate from 10% to 8%

UPDATE 17/01/2022
The National Assembly of Vietnam has approved a Resolution reducing the standard VAT rate to 8% for groups of goods and services currently being supplied at 10% except for: telecommunications;, information technology, financial activities, banking, securities and insurance, real estate, metal production and manufacturing of prefabricated metal products, mining (excluding coal), production of coke and refined petroleum; manufacturing of chemicals and chemical products.

This step has been taken as a Covid-19 relief measure to support socio-economic recovery and development.

The effective date for the VAT rate change is yet to be announced, but is expected in 2022.

Sources:
Newspaper of the Vietnamese Govt., IBFD