Resolution of the National Assembly on reducing value added tax

Specifically, in Resolution No. 204/2025/QH15 on reducing value added tax, the National Assembly resolved the scope of application as follows: Reduce the value added tax rate by 2%, applicable to groups of goods and services specified in Clause 3, Article 9 of Law on Value Added Tax No. 48/2024/QH15 (to 8%), except for the following 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).

The National Assembly assigns the Government to specify details of this provision.

This Resolution takes effect from July 1, 2025 to December 31, 2026.

* Article 9 of Value Added Tax Law No. 48/2024/QH15 states:

1. The 0% tax rate applies to the following goods and services:

a) Exported goods include: goods from Vietnam sold to organizations and individuals abroad and consumed outside Vietnam; goods from domestic Vietnam sold to organizations in duty-free zones and consumed in duty-free zones to directly serve export production activities; goods sold in quarantine areas to individuals (foreigners or Vietnamese) who have completed exit procedures; goods sold at duty-free shops;

b) Export services include: services provided directly to organizations and individuals abroad and consumed outside Vietnam; services provided directly to organizations in duty-free zones and consumed in duty-free zones to directly serve export production activities;

c) Other exported goods and services include: international transportation; vehicle rental services used outside the territory of Vietnam; aviation and maritime services provided directly or through agents for international transportation; construction and installation activities abroad or in duty-free zones; digital information content products provided to foreign parties and with records and documents proving consumption outside Vietnam according to Government regulations; spare parts and materials for repair and maintenance of vehicles, machinery and equipment for foreign parties and consumption outside Vietnam; goods processed for export according to law; goods and services not subject to value added tax when exported, except for cases where the 0% tax rate specified in Point d of this Clause is not applicable;

d) Cases not subject to the 0% tax rate include: technology transfer, transfer of intellectual property rights abroad; reinsurance services abroad; credit services; capital transfer; derivative products; postal and telecommunications services; export products specified in Clause 23, Article 5 of this Law; imported cigarettes, alcohol, and beer then exported; gasoline and oil purchased domestically and sold to business establishments in duty-free zones; automobiles sold to organizations and individuals in duty-free zones.

2. The tax rate of 5% applies to the following goods and services:

a) Clean water for production and daily life does not include bottled water, jarred water and other soft drinks;

b) Fertilizers, ores for fertilizer production, pesticides and animal growth stimulants as prescribed by law;

c) Services of digging, dredging canals, ditches, ponds and lakes for agricultural production; growing, caring for, and preventing pests and diseases for plants; preliminary processing and preservation of agricultural products;

d) Products of crops and planted forests (except wood, bamboo shoots), livestock, aquaculture, and fishing products that have not been processed into other products or have only undergone conventional preliminary processing, except for products specified in Clause 1, Article 5 of this Law;

d) Rubber latex in the form of crepe latex, sheet latex, vermicelli latex, granular latex; nets, twine and fibers for knitting fishing nets;

e) Products made of jute, sedge, bamboo, leaves, straw, coconut shells, coconut shells, water hyacinth and other handicraft products made from recycled agricultural materials; carded and combed cotton; newsprint;

g) Fishing vessels in coastal areas; specialized machinery and equipment serving agricultural production according to Government regulations;

h) Medical equipment as prescribed by law on medical equipment management; preventive and curative drugs; pharmaceutical ingredients and medicinal materials used as raw materials for the production of preventive and curative drugs;

i) Equipment used for teaching and learning includes: models, drawings, boards, chalk, rulers, compasses;

k) Traditional and folk performing arts activities;

l) Toys for children; books of all kinds, except for books specified in Clause 15, Article 5 of this Law;

m) Scientific and technological services as prescribed by the Law on Science and Technology;

n) Sale, lease, and hire-purchase of social housing in accordance with the provisions of the Housing Law.

3. The tax rate of 10% applies to goods and services not specified in Clause 1 and Clause 2 of this Article, including services provided by foreign suppliers without a permanent establishment in Vietnam to organizations and individuals in Vietnam via e-commerce channels and digital platforms./.

Source: https://baochinhphu.vn/nghi-quyet-cua-quoc-hoi-ve-giam-thue-gia-tri-gia-tang-10225062912505244.htm