How is a bill of 3 million VND reduced by 6,000 VND?
According to Resolution No. 204/2025/QH15 and Decree No. 174/2025/ND-CP, business households and individual businesses calculating value-added tax at a percentage rate on revenue are entitled to a 20% reduction in the percentage rate for tax calculation for goods and services subject to application.
The policy is implemented from July 1, 2025 to the end of December 31, 2026.
For example, a business household sells goods subject to tax reduction at a price of 3 million VND. Distribution and supply of goods applies a value-added tax rate of 1% on revenue.
According to the normal level, the value-added tax amount is determined as follows:
3,000,000 VND x 1% = 30,000 VND.
Due to a 20% reduction in the percentage rate for tax calculation, the amount of reduction for buyers is:
30,000 VND x 20% = 6,000 VND.
Thus, instead of paying enough 3 million VND, the buyer only has to pay 2.994 million VND. The corresponding value-added tax that business households must pay is 24,000 VND.
It should be noted that this is a 20% reduction of the percentage used to calculate taxes, not a direct 20% reduction in the selling price of goods.
When making electronic invoices, business households need to select value-added tax reduction content on the invoice software they are using.
At the "Income" column, business households still fully record the value of goods and services before reduction, in the above example it is 3 million VND.
In the line "Addition of goods and services", business households record the amount after reduction, equivalent to 2.994 million VND. Invoices must also show the content: "Already reduced by 6,000 VND, equivalent to 20% of the percentage rate for calculating value-added tax according to Resolution No. 204/2025/QH15".
According to the guidance posted on the Government Electronic Information Portal, fully showing the discount on the invoice is to ensure the rights of both business households and consumers.
Business households need to declare tax reduction appendices
Along with recording the reduction on the invoice, business households and individual businesses must declare separately the goods and services entitled to value-added tax reduction.
This information is declared according to Form No. 01 in Appendix III - Appendix on value-added tax reduction according to Resolution No. 204/2025/QH15, issued together with Decree No. 174/2025/ND-CP. The Appendix is sent with the tax return for business households and individual businesses according to Form No. 01/CNKD.
According to regulations on tax declaration in 2026, business households and individual businesses with annual revenue of over 1 billion VND to 50 billion VND shall declare taxes quarterly. In case annual revenue is over 50 billion VND, tax declaration shall be carried out monthly.
Not all goods and services are subject to this tax reduction policy. Groups not subject to reduction include telecommunications; financial, banking, securities, and insurance activities; real estate business; metal products; mining products, excluding coal; goods and services subject to special consumption tax, excluding gasoline.
Therefore, before issuing invoices, business households need to accurately determine whether goods and services are eligible for tax reduction or not. Misapplication may lead to incorrectly recording the amount of money on the invoice and incorrectly declaring tax obligations.
