Vietnam to lower value added tax rates for most products and services in February

According to media reports, the Vietnamese government has approved Circular No 43/2022/QH15 to reduce value-added tax (VAT) to 8% from the current 10% starting 1 February to 31 December 2022 in an effort to boost consumption and stimulate economic activities.  

The tax reduction would benefit all companies that are currently paying a 10% VAT rate, except firms in the fields of telecommunications, banking and finance, property development, mining and metallurgy, refinery and petrochemicals. 

Commenting on the timing of the implementation, industry experts said the government misses the opportunity to give the consumption a great boost right before the Lunar New Year holiday.