50. Value-Added Tax Reforms in the World and Some Policy Recommendations for Vietnam

Regulations on Value-added tax (VAT) in Vietnam has undergone numerous revisions to keep up with rapid socio-economic changes. However, these regulations are still have some limitations and they are not in compliance with international standards. The Ministry of Finance is collecting opinions about the draft amended Law on VAT. The draft amended Law on VAT has many proposals on expanding the tax base, limiting tax fraud, etc. The revised law also aims to improve the transparency, ease of understanding and application, and to be more harmonious with international practices. Many countries are also reforming their regulations on VAT with different directions in the context of globalization and rapid technology development, especially the development of artificial intelligence. This paper presents some VAT reforms in the world and makes a number of recommendations based on experiences of other countries and personal opinions in order to improve the draft amended Law on VAT of Vietnam.