Official VAT reduction of 2% for the first six months of the year.

Reduce VAT for goods and services currently subject to a 10% tax rate.

The government has just issued Decree No. 180/2024/ND-CP stipulating the policy of reducing value-added tax in accordance with Resolution No. 174/2024/QH15 dated November 30, 2024 of the National Assembly . The Decree is effective from January 1, 2025 to June 30, 2025.

The decree states that value-added tax will be reduced for groups of goods and services currently subject to a 10% tax rate, except for the following groups of goods and services:

a- Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products. Details are in Appendix I attached to this Decree.

b) Goods and services subject to excise tax. Details are provided in Appendix II attached to this Decree.

c) Information technology in accordance with the law on information technology. Details are provided in Appendix III attached to this Decree.

The Decree also clarifies that the reduction of value-added tax (VAT) for each type of goods and services will be applied uniformly at the import, production, processing, and commercial trading stages. For coal sold after extraction (including coal that has been mined and then screened and classified through a closed-loop process before being sold), the VAT reduction applies. Coal listed in Appendix I attached to this Decree is not eligible for VAT reduction at any stage other than the extraction and sale stage.

Corporations and economic groups that implement a closed-loop sales process are also eligible for a reduction in value-added tax on the coal they mine and sell.

In cases where goods and services listed in Appendices I, II, and III attached to this Decree are exempt from value-added tax or subject to a 5% value-added tax rate as stipulated in the Value-Added Tax Law, the provisions of the Value-Added Tax Law shall apply, and no value-added tax reduction shall be granted.

Value-added tax reduction

Regarding the reduction in value-added tax , the Decree clearly states that businesses calculating value-added tax using the deduction method are subject to a value-added tax rate of 8% for the goods and services specified above.

Businesses (including household businesses and individual businesses) that calculate value-added tax (VAT) using the percentage-based method on revenue are entitled to a 20% reduction in the percentage rate used for calculating VAT when issuing invoices for goods and services eligible for VAT reduction as stipulated above.

VN (compiled)

Source: https://baohaiduong.vn/chinh-thuc-giam-thue-vat-2-trong-6-thang-dau-nam-402063.html