The Decree clearly states that value added tax will be reduced for groups of goods and services currently subject to a tax rate of 10%, except for some groups of goods and services.
It is estimated that this year's budget will lose about VND24,000 billion when the value added tax is reduced to 8% in the second half of the year.
Specifically including: telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products.
Goods and services subject to special consumption tax; information technology according to the law on information technology.
The reduction of value added tax for each type of goods and services is applied uniformly at the stages of import, production, processing, and commercial business. For coal products sold (including coal mined and then screened and classified according to a closed process before being sold) are subject to value added tax reduction.
Corporations and economic groups that implement a closed process to sell are also subject to value added tax reduction on coal products sold...
Regarding the reduction in value added tax, according to the decree, business establishments calculating value added tax by the deduction method are entitled to apply a value added tax rate of 8% on goods and services.
Business establishments (including business households and individual businesses) calculating value added tax according to the percentage method on revenue are entitled to a 20% reduction in the percentage rate for calculating value added tax when issuing invoices for goods and services eligible for reduced value added tax.
This Decree takes effect from July 1 to December 31, 2023.
Immediately after the Government issued Decree 44/2023/ND-CP, on the evening of June 30, the General Department of Taxation ( Ministry of Finance ) also issued an urgent dispatch on the implementation of Decree 44/2023/ND-CP.
Accordingly, the General Department of Taxation requires tax departments to proactively disseminate and popularize Decree 44/2023/ND-CP to taxpayers in the area to promptly implement Decree 44/2023/ND-CP.
Previously, on the afternoon of June 24, the National Assembly passed a joint resolution of the 5th session of the 15th National Assembly, which resolved to continue reducing 2% of value-added tax according to Resolution 43 of 2022. This tax reduction will be implemented from July 1 to the end of the year.
It is estimated that this year's budget will lose about VND24,000 billion when the value-added tax is reduced to 8% in the second half of the year.
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