On April 23, the National Assembly Standing Committee gave its opinion on the draft Resolution of the National Assembly on reducing value-added tax (VAT) for the last 6 months of 2025 and the whole year of 2026.
Presenting a summary of this content, Deputy Minister of Finance Cao Anh Tuan stated that in order to contribute to creating momentum to promote and develop the economy, support people and businesses, promote domestic production and business activities, tourism and consumption in 2025 and 2026, it is necessary to continue implementing the VAT reduction policy.
According to Deputy Minister Cao Anh Tuan, the VAT reduction plan in this draft Resolution has changed the content compared to the provisions in previous Resolutions of the National Assembly.
Accordingly, the principle of proposal to reduce tax and VAT has goods and services subject to VAT and are not subject to VAT (with goods and services not subject to VAT, with goods and services for exporting tax rates of 0%, with goods and services subject to 5%and there are goods and services subject to 10%tax), only tax reduction for taxes and services is 10%.
In the group of goods and services subject to a 10% VAT rate, expand the subjects eligible for a 2% VAT rate reduction for goods and services serving production and business, tourism, and consumption to support increased purchasing power, stimulate consumption, domestic tourism, especially goods that contribute significantly to production and business such as: Information technology products and services, prefabricated metal products, coke, refined petroleum, chemical products, coal at the import stage and coal for sale at the commercial stage, gasoline, oil.
No VAT reduction for goods that are mineral resources, except for goods that are especially important in production and business such as mining products (except coal), metal products.
No VAT reduction for goods and services subject to special consumption tax (SCT), except for gasoline.
Maintain services that are not subject to VAT reduction as prescribed in previous Resolutions of the National Assembly such as: telecommunications, financial activities, banking, securities, insurance, real estate business.
The draft resolution stipulates a 2% reduction in VAT rates for groups of goods and services currently subject to a tax rate of 10% (to 8%), except for some 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 application period is from July 1, 2025 to December 31, 2026.
Regarding the impact on state budget revenue (NSNN), the Deputy Minister of Finance said that the expected decrease in state budget revenue in the last 6 months of 2025 and the whole year of 2026 is about 121.74 trillion VND (of which the last 6 months of 2025 decreased by about 39.54 trillion VND, in 2026 decreased by about 82.2 trillion VND).
Examining the report, Chairman of the National Assembly Economic and Finance Committee Phan Van Mua reflected that most opinions in the Standing Committee of the Committee agreed with the need to promulgate the Resolution to continue applying the VAT reduction policy for the last 6 months of 2025 and 2026.
The Standing Committee of the Committee also agreed with the proposal to expand the subjects of VAT reduction for some groups of goods and services as proposed by the Government.
There are opinions suggesting reviewing to consider some items affected by the trade war and the US counterpart tax policy (if not taxed) to help support businesses operating in this field.
