Items in the specified list will receive a 2% VAT reduction.

2% reduction in value added tax

Resolution No. 204/2025/QH15 of the National Assembly takes effect from July 1, 2025 to December 31, 2026. Accordingly, VAT will be reduced by 2%, applicable to groups of goods and services specified in Clause 3, Article 9 of the Law on VAT (to 8%), except for some groups of goods and services: Telecommunications, financial activities, banking, securities, insurance, real estate business, metal products, mining products (except coal), goods and services subject to special consumption tax (except gasoline).

In addition, Decree 174/2025/ND-CP stipulates the VAT reduction policy according to Resolution No. 204/2025/QH15 dated June 17, 2025 of the National Assembly, which also clearly states that business establishments calculating VAT according to the deduction method are entitled to apply a VAT rate of 8% to goods and services according to the above regulations. Business establishments, including business households and business individuals calculating VAT according to the percentage method on revenue, are entitled to a 20% reduction in the percentage rate for calculating VAT when issuing invoices for goods and services eligible for VAT reduction according to the above regulations. Immediately after the resolution took effect, enterprises simultaneously applied the new tax rate to service invoices.

Unlike previous short-term policies, the application period of the VAT reduction policy this time is extended until the end of 2026. Extending the policy implementation period helps businesses be more proactive in production and business.

In fact, the VAT reduction policy is not new because in the period from 2022 to the first 6 months of 2025, the National Assembly has issued many resolutions related to VAT reduction. It is worth mentioning Resolution 43/2022/QH15 dated January 11, 2022 on fiscal and monetary policies to support the socio -economic recovery and development program; including the policy of reducing VAT rates by 2% in 2022, applied to groups of goods and services currently applying a VAT rate of 10% (to 8%), excluding some groups of goods and services. The amount of VAT reduction from 10% to 8% when implementing the policy in the area during this period is about 496 billion VND.

Next, in 2023, the Government also issued Decree No. 44/2023/ND-CP dated June 30, 2023, stipulating the VAT reduction policy according to Resolution No. 101/2023/QH15 dated June 24, 2023 of the National Assembly. Accordingly, a 2% reduction in VAT on the sale of goods and services will begin from July 1, 2023, with the amount of tax paid to the State budget in the area reduced by about VND 75 billion. In 2024, the Government continued to issue Decree No. 94/2023/ND-CP dated December 28, 2023, stipulating the VAT reduction policy according to Resolution No. 110/2023/QH15 dated November 29, 2023 of the National Assembly, effective from January to June 2024... Accordingly, output tax was reduced by more than VND 407 billion in 2024. The Government also issued Decree 180/2024/ND-CP dated December 31, 2024, stipulating the VAT reduction policy according to Resolution No. 174/2024/QH15 dated November 30, 2024 of the National Assembly, continuing to reduce VAT by 2% in the first 6 months of 2025.

The leader of Hue City Tax Department said that the VAT reduction policy has contributed to promoting business production and stimulating consumption in the area during the time the policies are in effect.

Reduce consumer pressure

Recently, many businesses have started to add VAT to each customer's bill, especially businesses in the food and beverage and trade sectors. This is different from before, when stores only issued invoices with VAT when customers paid for services that required invoices with tax authority codes. Many items are added VAT to service bills, which makes people feel more clearly about the impact of the VAT reduction policy on their own "wallets".

Ms. Nguyen Ha Thao Linh, Thuy Xuan Ward, Hue City said that she often shops and uses services from shopping malls and large stores, so the VAT calculated on each bill is very large. Now, according to the new tax policy, each purchase bill will be reduced by 2% VAT (depending on the item). Although this number is not very large, if you spend a lot and add up the bills, it will be a large amount of money. ..

From the perspective of enterprises, this will also be an advantage in business. According to the explanation of some enterprises at accounting and tax forums, the tax reduction lasting 1.5 years compared to every 6 months as before will help enterprises, especially small and medium enterprises, to plan clear production and business strategies, thereby effectively exploiting preferential policies.

A business said that reducing VAT from 10% to 8% not only helps lower product prices and stimulate consumption, but also creates more room for reinvestment and production expansion. In the context of weak purchasing power and high input costs, this policy can be considered a timely boost, helping businesses maintain their market position, increase revenue and maintain jobs for workers.

Despite many positive impacts, the reduction of VAT will also directly affect the budget revenue. Therefore, along with the implementation of policies to support people and businesses, the tax sector also synchronously deploys solutions to increase budget revenue to compensate for the revenue shortfall from the implementation of VAT reduction policies.

Article and photos: Hung Anh

Source: https://huengaynay.vn/kinh-te/giam-thue-gia-tri-gia-tang-co-hoi-thuc-day-tang-truong-155722.html