List the sectors that are not eligible for the 2% VAT reduction.

Further reducing VAT to 8% will create momentum for business development. What solutions will increase total retail sales and consumer service revenue in the second half of 2024?

On June 30, the Government issued Decree No. 72/2024/ND-CP stipulating the policy on reducing value-added tax (VAT) in accordance with Resolution No. 142/2024/QH15 dated June 29, 2024 of the National Assembly .

kinh doanh bất động sản là một trong số các lĩnh vực không được giảm thuế VAT

Real estate business is one of the sectors that is not eligible for VAT tax reduction.

The decree stipulates a reduction in VAT for groups of goods and services currently subject to a 10% tax rate, effective from July 1, 2024 to December 31, 2024.

The sectors not eligible for VAT reduction are: telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products; and goods and services subject to excise tax.

The reduction in VAT for each type of goods and services is applied uniformly at all stages of import, production, processing, and commercial trading.

In cases where goods or services are exempt from VAT or subject to a 5% VAT rate as stipulated in the Value Added Tax Law, the provisions of the Value Added Tax Law shall apply, and no VAT reduction shall be granted.

Businesses that calculate VAT using the deduction method are subject to an 8% VAT rate on goods and services eligible for VAT reduction. Businesses (including household businesses and individual businesses) that calculate 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.

Previously, on June 29th, the National Assembly voted to approve the resolution at its 7th session. Accordingly, the National Assembly agreed to extend the application of the 8% VAT rate, a 2% reduction compared to the current rate, until the end of this year. This 2% reduction in VAT will help people save on living expenses, creating a psychological impact and stimulating demand and increased consumption.

Source: https://congthuong.vn/diem-ten-cac-linh-vuc-khong-duoc-giam-2-thue-vat-329351.html