Who will not be eligible for the 2% VAT reduction?

According to the Government , solutions to support businesses and people in terms of taxes, fees and charges in general and VAT reduction have had positive impacts and have been responded to and highly appreciated by the business community and people.

The Government accepts the opinion of the National Assembly Standing Committee in considering the subjects eligible for the 2% VAT reduction.

Therefore, in 2023, the Government proposed to continue implementing the policy of reducing VAT by 2% according to Resolution No. 43/2022/QH15 on fiscal and monetary policies to support the Socio- Economic Recovery and Development Program from July 1, 2023 to December 31, 2023.

Specifically, a 2% reduction in value added tax rate will be applied to groups of goods and services currently subject to a 10% tax rate (to 8%).

The groups of goods that are not entitled to a VAT reduction of 8% include: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to special consumption tax.

Previously, at the 23rd session of the National Assembly Standing Committee, the Government proposed to reduce the value added tax rate by 2% for all goods and services subject to the 10% tax rate. This includes all goods and services subject to special consumption tax and other fields such as banking, securities, insurance, real estate business, mining, telecommunications, information technology, etc.

However, the National Assembly's Finance and Budget Committee said that the Government's submission did not clearly explain the reasons for the proposal to expand the scope of application to a number of major sectors and fields.

The National Assembly Standing Committee does not agree to expand the scope to include goods and services subject to special consumption tax and other fields such as banking, securities, insurance, real estate business, mining, telecommunications, information technology, etc., but only implement as prescribed in Decision No. 43/2022/QH15.

In the new submission, the Government has accepted this opinion. The National Assembly will decide whether to reduce VAT or not at the 5th session, opening on May 22.

Source link: https://thanhnien.vn/nhung-doi-tuong-nao-se-khong-duoc-giam-thue-vat-2-185230516153647479.htm