From January 1, 2024, the value-added tax will be reduced by 2%.

The government issued Decree 94/2023/ND-CP stipulating the policy on reducing value-added tax in accordance with Resolution No. 110/2023/QH15 dated November 29, 2023 of the National Assembly .

From January 1, 2024, the value-added tax will be reduced by 2%.

Specifically, the value-added tax will be reduced for groups of goods and services currently subject to a 10% tax rate, except for the following groups: telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, and chemical products.

Information technology products and services are subject to excise tax according to the law on information technology.

The reduction of value-added tax (VAT) for each type of goods and services is applied uniformly at the import, production, processing, and commercial trading stages. For coal sold after extraction (including coal that has been mined and then screened and classified through a closed-loop process before being sold), the VAT reduction applies. Coal listed in Appendix I of this Decree is not eligible for VAT reduction at any stage other than the extraction and sale stage.

Corporations and economic groups that implement a closed-loop production process are also eligible for a reduction in value-added tax on the coal they sell.

In cases where goods or services are exempt from value-added tax or subject to a 5% value-added tax rate as stipulated in the Value-Added Tax Law, the provisions of the Value-Added Tax Law shall apply, and no value-added tax reduction shall be granted.

Value-added tax reduction: Businesses that calculate value-added tax using the deduction method are subject to a value-added tax rate of 8% for specified goods and services.

Businesses (including household businesses and individual businesses) that calculate value-added tax (VAT) using the percentage-based method on revenue are entitled to a 20% reduction in the percentage rate used to calculate VAT when issuing invoices for goods and services eligible for VAT reduction.

This Decree shall be effective from January 1, 2024 to June 30, 2024.

Source: http://www.baohoabinh.com.vn/12/185254/Tu-112024,-giam-thue-gia-tri-gia-tang-2.htm