Vietnam Government Announces Extension of 2% VAT Reduction Policy Through End of 2026

On June 17, 2025, the Vietnamese National Assembly passed a new resolution officially extending the 2% value-added tax (VAT) reduction until December 31, 2026. This resolution will take effect from July 1, 2025.

Notably, the latest resolution expands the scope of the VAT reduction beyond previous provisions, now including transportation, logistics, freight services, and information technology services within the tax relief coverage.

Since its implementation on January 1, 2024, the 2% VAT reduction policy has significantly helped lower operational costs for businesses across various sectors in Vietnam. Amid persistent global uncertainties such as sluggish recovery of major trading partners and disruptions to global supply chains, the policy has stimulated domestic consumption, supported economic growth, and contributed to macroeconomic stability.

For more detailed information or if you have other related questions, it is recommended to consult a professional legal or tax advisor.
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Source:Vietnam Briefing