Topic: VAT

Under the new proposal, more goods and services such as information technology, coke, oil and gas are subject to VAT reduction policy.

Export activities accounting for the largest share.

Subjecting goods valued at less than $39.4 to a 10% VAT rate could increase State budget revenue by over $106 million.

Incentive aimed at supporting business and production activities.

Individuals and organizations now subject to VAT if their annual revenue exceeds VND200 million ($7,840).

The policy aimed at supporting businesses and stimulating the economy.

The incentive lasting through December 31, 2024.

Amidst the enduring challenges of the Covid-19 pandemic, Vietnam's Ministry of Finance unveils proposals to alleviate economic strains through targeted VAT reductions. As businesses navigate the path to recovery, policymakers seek a delicate balance between stimulating economic growth and ensuring fiscal stability.

Reductions to take effect from January 1 until June 30.

The cost to the State budget has been estimated at over $1 billion.