Proposal to extend the 2% VAT rate reduction through the end of 2026
09 May, 2025
On March 8, 2025, the Government issued Resolution 46/NQ-CP. In alignment with the directives in Resolution 46/NQ-CP, the Ministry of Finance has developed a draft resolution proposing a 2% reduction in Value Added Tax (VAT) from July 1, 2025, to December 31, 2026. This proposal will be submitted to the National Assembly during its 9th Session. The draft resolution has been made available for public comment and can be accessed HERE.
The proposed 2% VAT reduction will apply to goods and services currently subject to a 10% VAT rate, with certain exceptions. Notably, compared to previous resolutions on this topic, this draft resolution includes new categories eligible for the VAT reduction, such as IT services, prefabricated metal products, coal at importation and trading stages, coke, refined petroleum, chemical products, and gasoline.
Get in touch
Giang Bao Chau
Partner, Tax and Legal Services, PwC Vietnam
Tel: +84 28 3823 0796
Nguyen Huong Giang
Partner, Tax and Legal Services, PwC Vietnam
Tel: +84 24 3946 2246