Vietnam Tax Agency Explains VAT Reduction Guidelines for Adjustments in State-Funded Construction Projects

The Vietnamese General Department of Taxation Nov. 10 explained the VAT reduction guidelines for adjustments in state-funded construction projects. The explanation states: 1) to qualify as a project adjustment, investment decisionmakers must approve adding new items to a project; 2) a temporary VAT rate, reduced to 8 percent from 10 percent, applies to specific state-funded construction projects from July to December 2024; 3) using VAT savings for items outside the project’s original scope may require additional guidance; and 4) taxpayers should consult with the Ministry of Planning and Investment and the Ministry of Finance for any use of VAT savings beyond ...