VAT Rate Applicable to Sales Revenue in Vietnam
Question: For sales to local customers in Vietnam, what is the VAT rate?
Answer:
According to the current regulations of Vietnamese law, value-added tax (VAT) for wholesale trade services of machinery, equipment, and electronic components (based on the company's business lines) is applied at a tax rate of 10%.
However, the government has recently issued a VAT reduction policy to stimulate consumption demand. The current VAT rate is 8% for goods and services groups that were previously subject to a 10% tax rate until June 30, 2025.
Please note: After June 30, 2025, the VAT rate will revert to 10% unless the Government introduces new preferential policies for enterprises.
Legal basis:
- Decree 180/2024/ND-CP stipulating VAT reduction policy under Resolution 174/2024/QH15, which clearly specifies the goods and services subject to continued VAT reduction to 8% from January 1, 2025, to June 30, 2025.
- Value-Added Tax Law of 2008 (amended and supplemented in 2013, 2016).
