More Goods Qualified for 50 Percent VAT Discount
May 20 – Vietnam’s Ministry of Finance has added thousands of goods on their list that qualify for a 50 percent cut on VAT rates until the end of the year.
The list added knives and cutting blades used for machines or mechanical tools, welding rods, water tanks with a capacity of more than 300 liters, steam boilers and turbines.
The tax reduction also covers refrigeration equipment, ice machines and other freezing equipment, equipment used for workshops or laboratories, liquid or gas refining machines and equipment, agriculture machines, gardening machines, milking machines and milk processing machines, printers, copiers and fax machines.
For companies that already imported goods included in the tax reduction, they may claim their refund at the customs department.
The VAT reduction aims to aid investment and boost consumer demand, more so for importers dealing with the effects of the global crisis.
Prior to the latest circular on goods, the Minister of Finance issued a circular slashing VAT by 50 percent on 19 groups of goods and services last February. This led to reduced rates for computers, cars and car parts, tourism and hotel services.
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