The National Assembly of Vietnam recently approved to extend the policy of 2% Value Added Tax (VAT) rate reduction to 31 December 2026, which was previously set to expire on 30 June2025.

The above VAT rate reduction is applicable to goods and services currently subject to a 10% standard VAT rate, except for the following categories of goods and services:

1. Telecommunications, financial activities, banking, securities, insurance, real estate business, metal products, mining products (excluding coal mining).
2. Goods and services subject to special consumption tax (excluding gasoline).

The new VAT rate reduction policy expands its application scope. Information technology services, prefabricated metal products, coal at importation and trading stages, coke, refined petroleum, chemical products and gasoline are now eligible for the 8% VAT preferential rate.

Same as before, the reduction of VAT rate shall be consistently applied at various business stages across the importation, manufacturing, processing and trading phases for eligible goods and services.

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.