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Vietnam VAT relief for tourism and hospitality sectors

Vietnam is providing VAT relief for the hospitality sector to provide economic relief in the wake of the Covid pandemic. Vietnamese VAT relief also extends to other hard-hit sectors, including publishing, film and sports. 

Which sectors are covered?

As part of broader economic relief measures, Vietnam is waiving VAT from 1 November 2021 to 31 December 2021 in a range of sectors. These are: transportation services, entertainment, food, accommodation, and promotion of tourism.  

30% VAT reduction in Vietnam 

Vietnamese authorities are lowering VAT in the specified sectors by 30%. Vietnam’s standard rate of VAT is 10%. 

As with many countries around the world, Vietnam has provided a series of economic relief measures in the past year. These include VAT payment extensions.  

Corporate income tax relief

As part of broader Covid relief measures, Vietnam is also reducing CIT by 30%. To be eligible for the reduced income tax rate, businesses must have revenue of less than VND 200 billion in 2021. The business’s income in 2021 must also be lower than it was in 2019. 

Note also that tax relief does not apply on revenue from digital services such as streaming video or software products. 

Businesses that were founded in 2020 or later are not eligible for CIT relief. 

Flexible VAT technology for a changing world

In response to the economic pressure of the Covid pandemic, tax offices around the world changed VAT rates, rules and processes. They also took steps to enhance VAT enforcement on e-commerce and digital services

Businesses need powerful, flexible VAT compliance technology that makes it easy to meet the demands of changing VAT regulations. Vatglobal’s proprietary VAT technology makes  managing VAT simple, ensuring you never miss a deadline and that you are always 100% VAT compliant, everywhere you have an obligation. 

 

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