The National Assembly passed a resolution to reduce VAT from 10% to 8% in 2022

On January 11, 2022, the National Assembly passed a Resolution on fiscal and monetary policies to support the Program on Socio-Economic Recovery and Development, with 424/426 delegates voting in favor.

Accordingly, the Resolution decides the policies to support the Socio-Economic Recovery and Development Program, aiming at reducing costs, supporting cash flows, ensuring the proactiveness and creating favorable conditions for businesses, economic organizations and people. Of which, a significant feature is:

- Tax exemption and reduction policy: 2% reduction of value-added tax rate in 2022, applicable to groups of goods and services currently subject to the value-added tax rate of 10%, except for some groups of goods, telecommunications services, information technology, financial activities, banking, securities, insurance, real estate business,...

The government believes that this plan is appropriate to ensure the objective of stimulating the demand, thereby it makes the production and business activities to recover and develop soon to contribute back to the State budget as well as the economy.

In addition, this is a simple and feasible option in the implementation and is consistent with the opinions of the President of the National Assembly and Committees of the National Assembly.

The period of VAT reduction from 10% to 8% applies in 2022.

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.