- The government has issued Decree 94/2023/ND-CP on reducing value-added tax (VAT) according to Resolution 110/2023/QH15 of the National Assembly.
- The VAT reduction applies to goods and services currently subject to a 10% tax rate, except for certain categories such as telecommunications, financial activities, real estate business, and chemical products.
- The VAT reduction is applicable at all stages of import, production, processing, and trade.
- Coal mining and certain types of companies implementing closed-loop processes are also eligible for the VAT reduction.
- Goods and services that are not subject to VAT or subject to a 5% VAT rate are not eligible for the VAT reduction.
- The VAT rate for businesses is 8% and can be deducted from the taxable value of goods and services.
- Businesses can also apply a 20% reduction in the VAT rate when issuing invoices for goods and services eligible for the VAT reduction.
- The Decree is effective from January 1, 2024, to June 30, 2024.
Source: baochinhphu.vn
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
