The Government has just issued Decree No. 94/2023/ND-CP stipulating the policy of reducing value added tax according to Resolution No. 110/2023/QH15 dated November 29, 2023 of the National Assembly , effective from January 1, 2024.
Specifically, value added tax will be reduced for groups of goods and services currently subject to a tax rate of 10%, except for the following groups of goods and services: telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products, coke, refined petroleum, chemical products; goods and services subject to special consumption tax; information technology according to the law on information technology.
In case goods and services are not subject to value added tax or are subject to 5% value added tax according to the provisions of the Law on Value Added Tax, the provisions of the Law on Value Added Tax shall apply and no value added tax reduction shall be allowed.
Business establishments calculating value added tax according to the deduction method shall apply a value added tax rate of 8% to prescribed goods and services.
In case a business establishment (including business households and individual businesses) calculates value added tax according to the percentage method on revenue, the percentage rate for calculating value added tax is reduced by 20% when issuing invoices for goods and services eligible for reduced value added tax.
Source
Comment (0)