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Vietnam temporary COVID-19 VAT cuts tourism & restaurants

The Vietnamese Ministry of Finance has announced a range of fiscal measures to support the economy as the coronavirus pandemic continues. This includes a 30% reduction in the 10% standard rate to 7% for income from certain sectors most affected, including:

  • tourism;
  • public transport;
  • hotel and similar accommodation;
  • Restaurant and café (non-alcohol)
  • Sports,
  • Amusement and entertainment; and
  • Music or video composing, art; press, television; libraries, archives, museums and other cultural activities.

Vietnam had earlier this year given a five-month postponement on VAT payments for April to June VAT returns.  It has also delayed the introduction of e-invoices until July 2022.

Other measures announced on August 13 included:

  • The deadline for VAT and personal income tax payments for individuals and business households such as SMEs is extended to December 31 2021.
  • Extension in the 30% cut in corporate income tax rates
  • A 50% cut in the personal income taxes
  • No late payment interest on tax debts for 2020/21 for businesses that can demonstrate ongoing pandemic losses
  • 30% cut in rental payments for businesses affected by the ongoing health and economic emergency

VAT Calc’s in real-time global Calculator and Auditor  services produce instant and accurate tax calculations into your ERP, billing, e-commerce or e-invoicing systems.

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