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An overview by DFDL, Taxand Vietnam
Vietnam has recently extended its reduced 8% VAT rate until 31 December 2026 under Resolution 204/2025/QH15, with implementation guidance issued in Decree 174/2025/ND-CP. The reduced 2% VAT rate will be in effect from 1 July 2025 until 31 December 2026.
In comparison to the previous VAT reduction that applied until 30 June 2025, the resolution includes some adjustments to the scope of the extended 2% VAT reduction. Notably, the sectors now eligible for the reduced rate include transportation services, logistics, and information technology goods and services. However, certain sectors that were originally VAT-exempt have been excluded from this reduction, specifically education, vocational training, medical services, finance, banking, securities, and insurance. Additionally, sectors such as telecommunications and real estate, which have seen recent growth, are also not eligible for the VAT reduction.
Jack Sheehan from our Vietnamese member firm DFDL has published a more detailed overview of the change here.
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