Proposal to eliminate reduced rate as part of wider 2030 tax simplification plans
Vietnam has proposed consolidating its reduced rate of 5% with the standard rate of 10%. The reduced rate currently includes:
- Basic foodstuff;
- 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.
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