The value-added tax (VAT) for most of goods and services will be cut by 2% from January 1, 2024.

The General Department of Taxation reported this year’s tax revenue at VNĐ1,396 quadrillion (US$57 trillion), exceeding the target by 1.7 per cent as 29 out of 63 localities across the country have completed their 2023 tax estimates.

The General Department of Taxation (GDT) has said that it guaranteed to reduce and simplify at least 20% of regulations and cut at least 20% of compliance costs related to business activities and eliminate unnecessary regulations by 2025.

As of the end of July, the tax sector collected a total of 25.608 trillion VND (1.06 billion USD) in tax arrears, reported the General Department of Taxation.

Vietnam’s tax authorities are working to make e-invoicing a common practice among business establishments nationwide as e-invoices generated from cash registers (ECR) make tax collection more efficient and manageable.

The Vietnam Confederation of Commerce and Industry (VCCI) says that domestically manufactured products bear a higher VAT (value added tax) higher than imports, and are thus placed at a disadvantage.

The gaming industry, unable to buy foreign games to distribute domestically because foreign partners are allowed to distribute games in Vietnam, does not expect a bright future.

Vietnam supports the global minimum tax and plans to begin the tax application in 2024, creating a favorable mechanism to encourage enterprises to pay additional tax in Vietnam.

The tax authority estimated that about 112 MNEs in Việt Nam would be affected by the global minimum tax if it was applied from 2024.

In late June, the Ministry of Finance (MOF) submitted to the government a proposal on amending the luxury tax law.

The Standing Committee of the Government has just released a conclusion that online video game services (online game) are not subject to special consumption tax.

Vietnamese game firms have sighed with relief as the Standing Government has rejected a luxury tax on online games as proposed by the Ministry of Finance (MOF).

The General Department of Taxation has reported that prominent foreign tech companies, including Google, Apple, Facebook, Netflix, TikTok, made substantial tax contributions, amounting to around $166 million during the first half of 2023.

Amid the country’s difficult economy, in recent years, the e-commerce business in Vietnam has experienced surprising growth; however, the tax collection from e-commerce is not as expected.

Online game producers may find themselves pushed out of the market in Vietnam with the introduction of an “unprecedented” tax that aims to protect younger generations.

Industry experts and beer producers are urging for a delay in any increase to special consumption tax until at least 2026, giving the industry more time to recover from low growth.

The Government is likely to submit to the National Assembly this October a draft policy relating to the global minimum tax which is scheduled to take effect on January 1, 2024 globally.

Vietnamese game firms have called on the Ministry of Finance (MOF) to rethink the intention to impose luxury tax on games, saying that the tax will cause Vietnamese games to lose competitiveness and the home market controlled by pirated games.

The impacts of the imposition or increases of special consumption tax on several products must be studied carefully to ensure State budget revenue and the development of production and business, experts said.

The Ministry of Finance (MoF) has just announced the reduction of the gasoline import tax to 5.62 per cent while increasing the standard cost of the gasoline base price by VND30 per litre.