The Government has just issued Decree No. 180/2024/ND-CP stipulating the policy of reducing value added tax according to Resolution No. 174/2024/QH15 dated November 30, 2024 of the National Assembly. The Decree takes effect from January 1, 2025 to June 30, 2025.
The Decree clearly states that value added tax will be reduced for groups of goods and services currently subject to a tax rate of 10%, except for the following groups of goods and services:
- Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products.
- Goods and services subject to special consumption tax.
- Information technology according to the law on information technology.
The Decree also clearly states that the reduction of value added tax for each type of goods and services is applied uniformly at the stages of import, production, processing, and commercial business. For coal products sold (including coal mined and then screened and classified according to a closed process before being sold) are subject to value added tax reduction.
Corporations and economic groups that implement a closed process to sell are also subject to value-added tax reduction on coal products sold.
Regarding the reduction in value added tax, the Decree clearly states that business establishments calculating value added tax according to the deduction method are entitled to apply a value added tax rate of 8% to the goods and services specified above.
Business establishments (including business households and individual businesses) calculating value added tax according to the percentage method on revenue are entitled to a 20% reduction in the percentage rate for calculating value added tax when issuing invoices for goods and services eligible for value added tax reduction as prescribed above.
On November 30, 2024, the National Assembly passed Resolution 174/2024/QH15 on the 8th Session of the 15th National Assembly, in which the National Assembly resolved:
Continue to reduce 2% of value added tax rate for groups of goods and services specified in Point a, Section 1.1, Clause 1, Article 3 of Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Socio-Economic Recovery and Development Program from January 1, 2025 to June 30, 2025.
The Government is assigned to organize implementation and take responsibility for ensuring the collection task and the ability to balance the state budget in 2025 as decided by the National Assembly.
