Vietnam VAT hike proposal

Vietnam’s government is considering a VAT rise from the current 10% standard and 5% reduced rates. The tax rise is required to meet commitments to reduce import tariffs.

There are two proposals under review by the Finance Ministry:

• 1. Raise the standard rate from 10% to 12%, and the reduced rate from 5% to 6%; or
• 2. Consolidate all supplies currently on the two rates at a single, 10% rate.

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