Officially reduce VAT by 2% until the end of 2024

On June 30, 2024, the Government issued Decree 72/2024/ND-CP stipulating the value-added tax reduction policy according to Resolution 142/2024/QH15 dated June 29, 2024 of the National Assembly.

Officially reduce VAT by 2% until the end of 2024
Accordingly, the value added tax reduction from July 1, 2024 to December 31, 2024 is as follows:

- Business establishments that calculate value-added tax using the deduction method may apply the 8% value-added tax rate to goods and services currently subject to a 10% tax rate, except for groups of goods, following service:

+ Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products. Details are in Appendix I issued with Decree 72/2024/ND-CP .

+ Products and services subject to special consumption tax. Details are in Appendix II issued with Decree 72/2024/ND-CP .

+ Information technology according to the law on information technology. Details are in Appendix III issued with Decree 72/2024/ND-CP .

+ The value added tax reduction for each type of goods and services specified in Clause 1, Article 1 of Decree 72/2024/ND-CP is applied uniformly at all stages of import, production, processing, and trading. commercial business. For sold coal products (including cases where coal is then screened and classified according to a closed process before being sold) are subject to value added tax reduction. Coal items included in Appendix I issued with Decree 72/2024/ND-CP, at stages other than the exploitation and sale stage, are not subject to value added tax reduction.

Corporations and economic groups that carry out a closed process to sell are also subject to value added tax reduction on sold coal products.

In cases where goods and services listed in Appendixes I, II and III issued with Decree 72/2024/ND-CP are not subject to value-added tax or are subject to value-added tax 5 % according to the provisions of the 2008 Value Added Tax Law will comply with the 2008 Value Added Tax Law and is not eligible for value added tax reduction.

- Business establishments (including business households and individual businesses) that calculate value-added tax according to the percentage method on revenue are entitled to a 20% reduction in the percentage rate to calculate value-added tax upon implementation. currently issue invoices for goods and services eligible for value added tax reduction specified in Clause 1, Article 1 of Decree 72/2024/ND-CP .

See more at Decree 72/2024/ND-CP effective from July 1, 2024 to December 31, 2024.