VAT policy discriminates against local businesses: VCCI

HCMC – The Vietnam Chamber of Commerce and Industry (VCCI) has sounded the alarm over the fact that the current value-added tax (VAT) policy tilts in favor of foreign enterprises, potentially disadvantaging domestic ones. VCCI pointed out that the policy, which grants specific goods exemption from VAT, inadvertently shields foreign products. Conversely, similar imported products enjoy VAT exemption upon importation and even qualify for VAT refunds upon re-exportation from their originating countries. VCCI suggested retaining VAT exemption for domestically produced goods and applying appropriate VAT rates to imported goods intended for domestic consumption. Goods presently exempt from VAT would transition to the 5% VAT category, while the category of goods and services ineligible for VAT exemption would remain taxed at 10%.