Value added tax reduced until middle of next year

HCMC – Goods and services except for some sectors will be entitled to a two-percentage-point reduction of value-added tax (VAT) until the middle of the year 2024. However, sectors such as banking, securities, real estate, and telecommunications will continue to be excluded from this VAT reduction. This VAT reduction applies uniformly throughout all stages, from importation and production to processing and trading. Goods and services not eligible for VAT or subject to a 5% VAT rate will adhere to existing regulations and are not entitled to a VAT cut. Previously, a two-percentage-point VAT reduction was implemented on July 1, 2023 on numerous goods and services previously taxed at a rate of 10%.