The Government has just issued a Decree stipulating the value added tax (VAT) reduction policy according to the Resolution of the National Assembly. Previously, at the end of November, in the Resolution of the 11th Session of the 6th National Assembly, the National Assembly agreed to reduce VAT by 2% from January 1, 1 to June 2024, 30.
According to the Government Decree, there will be a 2% reduction in VAT for groups of goods and services currently subject to a 10% tax rate, except for groups of goods, telecommunications services, financial activities, banking, and securities. securities, insurance, real estate business, metals and fabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products; Goods and services subject to special consumption tax; information technology according to the law on information technology.
In addition, the reduction of VAT for each type of goods and services is applied uniformly at all stages of import, production, processing, and commercial business. For sold coal products (including cases where coal is then screened and classified according to a closed process before being sold) are subject to value added tax reduction.
Corporations and economic groups that carry out a closed process to sell are also subject to value-added tax reduction for sold coal products.
According to the Decree, the VAT reduction at business establishments that calculate value-added tax according to the deduction method is applied at a value-added tax rate of 8% for specified goods and services.
Business establishments (including business households and individual businesses) that calculate VAT according to the method of calculating VAT directly on the added value by multiplying the percentage with revenue are entitled to a 20% reduction in the percentage rate to calculate tax. Added value when issuing invoices for goods and services eligible for VAT reduction as prescribed.
The Decree takes effect from January 1, 1 to June 2024, 30.
Corporations and economic groups that carry out a closed process to sell are also subject to value-added tax reduction for sold coal products.
It is estimated that the implementation of the 2% VAT reduction policy in the first 6 months of 2024 is expected to reduce State Budget revenue by about VND 25.000 billion.
The solution to reduce VAT along with other tax, fee and charge solutions are creating great conditions to help businesses reduce production costs, increase profits, and increase the ability to stimulate demand.
Statistics after 3 months of implementation (from July 7 to September 2023), the 9% VAT reduction policy has supported businesses and people with a total of about 2023 billion VND. Thereby contributing to reducing the cost of goods and services, thereby promoting production and business and creating more jobs for workers, contributing to stimulating consumer demand and promoting production and business development..
