Study the roadmap for increase in value added tax rate in Vietnam

The Prime Minister of Vietnam issued Decision 508/QD-TTg approving the Tax Reform Strategy until 2030 including certain solutions to reform tax policy for value added tax are as follows:

Study the roadmap for increase in value added tax rate in Vietnam(Illustration)

- Broaden tax base by reducing categories of goods and services not subject to value added tax and categories of goods and services subject to the 5% VAT rate;

- Strive for the only one tax rate to be applied basically;

- Study the roadmap for increase in value added tax rate;

- Review the thresholds of sales subject to VAT calculated according to the tax credit method and adjust them to reality;

- Study the single method of taxation according to the percentage of sales and apply it to taxpayers whose sales are below the threshold or are not eligible to apply the tax credit method;

- FinalizeVietnam's regulations related to value-added tax on exported goods and services, and ensuring that they reflect matters of substance and conform to international practices.

- Study any necessary amendments and supplements to regulations on VAT deduction and refund with a view to ensuring simplicity, transparency and consistency with other regulatory provisions in Vietnam;

See more at Decision 508/QD-TTg effective from April 23, 2022, Vietnam.

 



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