Tag: VAT

The reduction applied for goods and services currently taxed at 10%, with some exceptions.

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.

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

Latest reduction in place until December 31, 2023.

Cut would help give consumption a boost.

Cut would give a further boost to economic development.

Businesses, individuals, and the economy in general still face a host of difficulties and challenges and continued support is warranted.

The Ministry of Finance (MoF) issued Official Letter No. 9691/BTC-CST to ministries and branches on September 23, seeking opinions on a draft Resolution from the National Assembly on reducing the special consumption tax (SCT) on gasoline and VAT on oil and gasoline.

Deputy Prime Minister Le Minh Khai has directed the Ministry of Finance to continue calculating plans to cut excise taxes and VAT on gasoline, carefully assessing the impact on the State budget and making preparations if feasible.

In the tax structure for calculating gasoline prices, the Ministry of Finance (MoF) has proposed reducing rates on four types of taxes, including most favored nation (MFN), environmental protection, excise, and VAT. Although the reductions to excise taxes and VAT have not been announced, these are expected to stop the record increase in gasoline prices.

According to the Ministry of Finance (MoF), when unusual fluctuations appear in gasoline prices, many countries around the world cut VAT and excise tax rates and even introduce subsidies to help citizens. However, for many reasons, Vietnam has only reduced environmental protection taxes.

The Ministry of Finance (MoF) has declined to adopt a proposal from the Vietnam Textile and Apparel Association (VITAS) in which it called for the purchase of domestic fabric for export production to be subject to a value-added tax (VAT) rate of 0 per cent. The industry is being weighed down by difficulties due to labor shortages and rising costs, making the 2021 target of exporting $39 billion worth of goods problematic.