HANOI: Vietnam’s government has implemented a value-added tax (VAT) reduction on goods and services, effective today until 31st December 2024, according to Vietnam News Agency (VNA).

The VAT rate dropped from 10% to 8%. This reduction excludes specific sectors like telecommunications, finance, banking, security, insurance, real estate, certain chemicals, and goods subject to special consumption tax. It applies to import, export, production, and trade activities.

Additionally, the Ministry of Finance issued a circular reducing various fees and charges until year-end to support businesses. These reductions aim to remove obstacles and stimulate business activity.

Accordingly, a 50% decrease will be applied to fees for establishing and operating banks and non-bank credit institutions, issuing citizen identification cards, registration of intellectual property protection, appraisal and approval of fire prevention and fighting designs, and use of railway infrastructure, among others.

Reductions from 10-30% are
applied to fees for issuing licences and permits for civil aviation operations, entry and exit permits for restricted airport areas, and customs fees for foreign flights landing in Vietnam.

Meanwhile, the securities industry sees a 50% reduction in most fees and charges, except for licencing fees of securities professionals and supervision fees for securities activities.

This marks the fourth time the ministry has imposed fee reductions of 10-50%, which is estimated to have a budgetary impact of about 700 billion VND (US$29.1 million).

Source: Emirates News Agency