Vietnam Reduces VAT Rate
The Vietnamese government issued Decree 15/2022/ND-CP on 28 January 2022, announcing the reduction of value added tax (VAT) rate to support the country’s post-pandemic recovery. The details are as follows:
For goods and services subject to 10% VAT rate, the VAT rate will be reduced from 10% to 8% from 1 February 2022 to 31 December 2022.
The above reduction does not cover the following categories of goods and services:
Telecommunications services, information technology goods and services;
Finance, banking, insurance, securities;
Trading of real estate;
Metal and precast metal products, mining products (excluding coal), cokes, refined petroleum, chemical products; and
Goods and services subject to special sales tax. For example, tobacco products, beer, cars, massage, lotteries, etc.
In addition to the reduction of value added tax rate, Decree 15/2022/ND-CP also allows donations and sponsorships made by organisations and enterprises for containing the spread of Covid-19 to be included in the deductible expenses when filing corporate income tax declarations for the 2022 tax period. Taxpayers are required to maintain supporting documents for this and comply with relevant regulations when filing a claim.
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