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Vietnam goes to single VAT rate

Plan eliminate reduced rate as part of wider 2030 tax simplification plans

Vietnam is to consolidating its reduced rate of 5% with the standard rate of 10%.  The reduced rate currently includes:

  • Basic foodstuff;
  • transport;
  • agriculture;
  • medicines;
  • cultural,
  • cinema;
  • books;
  • education;
  • scientific and tech.

Vietnam also intends to extend the tax base to bring more supplies out of the reduced Value Added Tax rate.

Vietnam cut its VAT rate to 8% on a range of goods between February and December 2022 for most supplies in recognition of the ongoing COVID-19 pandemic. The Special Consumption Tax on tobacco, alcohol will be extended to other products and will be raised.

You can review over 300 jurisdictions global VAT and GST rates in our free searchable database.

 

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