VAT set to 0% on gasoline, diesel and aviation fuel until at least 30 June 2026
Vietnam has again to shield its economy from surging oil prices following tensions in the Strait of Hormuz. Under Decision No. 482/QD-TTg, the government has extended a temporary 0% VAT rate on gasoline, diesel and aviation fuel from 26 March to 30 June 2026. It was scheduled to return to normal on 15 April 2026.
The measure goes further than a simple rate cut. Businesses are exempt from VAT declaration and payment on fuel supplies, while still retaining the right to recover input VAT. Alongside this, environmental protection tax has been waived and special consumption tax on gasoline reduced to zero.
The VAT cuts are expected to reduce state budget revenues by about 7.2 trillion Vietnamese dong (around 287.8 million U.S. dollars) per month
Vietnam joins a growing list of jurisdictions using VAT as a rapid-response tool to counter inflationary energy shocks triggered by geopolitical disruption in the Middle East.
