Vietnam Gazettes Decree Introducing VAT Reduction Policies

The Vietnamese Official Gazette Jan. 15 published Decree No. 94/2023/ND-CP, on VAT reduction policies, effective Jan. 1 through June 30. The decree includes measures: 1) allowing businesses calculating VAT by the credit method to apply an 8 percent reduced VAT rate for specific goods and services; 2) allowing a 20 percent reduction for VAT calculation, for businesses and entrepreneurs calculating VAT by the turnover percentage method, when issuing invoices for goods and services eligible for VAT reduction; 3) reducing the VAT rate to 8 percent from 10 percent on specific groups of goods; 4) clarifying the VAT reduction on specific ...