Reduce VAT

Gasoline will officially have VAT reduced from July 1, 2025. Photo: Hai Nguyen.

From July 1, 2025, gasoline will officially have a 2% reduction in value added tax

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Gasoline will be subject to a VAT rate of 8% instead of 10% from July 1, 2025 according to the Resolution just passed by the National Assembly.

National Assembly delegate Nguyen Quang Huan is concerned that businesses are "ored" by the locality with VAT, and does not know who to find when merging provinces. Photo: Pham Dong

National Assembly deputies worry about businesses being slow to get VAT refunds after provincial mergers

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National Assembly deputies are concerned about the situation of local VAT arrears with enterprises that have lasted for many years, especially when merging provinces.

Delegate Tran Van Lam talked about the current situation of when there is money to increase revenue, it is wasted on small projects, when there is a need for big work, it is difficult. Photo: Pham Dong

Money in the safe cannot be spent but still have to borrow to pay interest

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The delegate pointed out the situation of having money but not being able to spend it, having money in the safe but not being able to disburse it, having to borrow money from the budget and pay interest.

Chairman of the National Assembly's Economic and Financial Committee Phan Van Mai reported on the review of the draft Resolution of the National Assembly on VAT reduction. Photo: Pham Dong

Consider reducing VAT on all goods and services

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The Economic and Financial Committee proposed to assess that the VAT reduction by the end of 2026 will reduce state budget revenue by about 39.54 trillion VND.

Officially proposing to reduce VAT by 2% until the end of 2026

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The Government proposes to reduce VAT rates by 2% for groups of goods and services currently applying a tax rate of 10% (to 8%) until December 31, 2026.

Today (May 13), the National Assembly will consider the draft Resolution of the National Assembly on reducing value-added tax. Photo: Quochoi.vn

Today, the Government submitted to the National Assembly on reducing value-added tax

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In today's working session, the National Assembly will listen to the presentation and report on the review of the draft Resolution of the National Assembly on reducing value-added tax.

Enterprises and organizations subject to an extension to declare and submit the Monthly and Quarterly Value Added Tax Declaration according to the provisions of current law, but have not yet to pay the value added tax payable on the Declared Value Added Tax Declaration. Illustrative photo: Nam Duong

Regulations on extending the payment of value added tax in 2025

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A reader with email trihungxxx@gmail.com asked: How is the extension of value added tax payment in 2025 regulated?

Many items will have their value added tax reduced until June 30, 2025. Photo: My Ly

Procedures for implementing value added tax reduction?

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Reader tungphanxxx@gmail.com asked: What are the procedures for implementing value-added tax reduction in the first 6 months of 2025?

Reduce value added tax on groups of goods and services currently subject to a tax rate of 10%. Photo: My Ly

Value added tax reduction until June 30, 2025

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Reduce value added tax on groups of goods and services currently subject to a tax rate of 10% from January 1, 2025 to June 30, 2025.

Tax cuts will affect state budget revenue. Photo: Hai Nguyen.

The budget for the first 6 months of 2025 may decrease by 26,000 billion VND

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The majority of opinions in the Finance and Budget Committee agreed with the proposal to continue allowing the application of the value-added tax (VAT) reduction policy.

Tax Directorate representative answers hot tax issues at the regular press conference for the third quarter of 2024. Photo: Minh Anh.

Tax exemption threshold may be raised in the Draft VAT Law

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Currently, the threshold for not being subject to value-added tax (VAT) for small, micro and household businesses is being considered to be below 200 or 300 million VND/year.