Vietnam: Fuel VAT Suspended Until April 2026

Vietnam has taken immediate action to protect its economy from rising oil prices. The government has implemented a temporary 0% VAT rate on gasoline, diesel, and aviation fuel from March 26 to April 15, 2026, under Decision No. 482/QD-TTg.

The action goes beyond a straightforward rate reduction. Businesses can still recover input VAT, but they are not required to declare or pay VAT on fuel supplies. In addition, the special consumption tax on fuel has been lowered to zero and the environmental protection fee has been repealed.

It is anticipated that the VAT reductions will result in a monthly decrease in state budget receipts of roughly 7.2 trillion Vietnamese dong (or 287.8 million US dollars).

Vietnam is now one of an increasing number of countries employing VAT as a quick-reaction measure to combat inflationary energy shocks brought on by Middle Eastern geopolitical unrest.