- The Ministry of Finance is seeking feedback on a draft decree to reduce the value-added tax (VAT) by 2% until June 30, 2025
- This tax reduction applies to goods and services currently subject to a 10% VAT rate, with exceptions for certain categories
- Excluded categories include telecommunications, financial activities, banking, securities, insurance, real estate business, pre-cast metal products, mining products (excluding coal mining), coke coal, refined petroleum, and chemical products
- Also excluded are goods and services subject to special consumption tax, information technology as defined by IT law, and other specified items in the attached appendices of the decree
- The VAT reduction is uniformly applied at various stages including import, production, processing, and commercial trading
- Coal products, when mined and sold after a closed-loop sorting and classification process, are eligible for the VAT reduction
- Large economic corporations and groups following a closed-loop process for selling mined coal are also eligible for the VAT reduction
- Goods and services listed in the attached appendices that are either not subject to VAT or subject to a 5% VAT as per the VAT Law are not eligible for the reduction
- Businesses calculating VAT using the deduction method can apply an 8% VAT rate on specified goods and services
- Businesses including individual and household businesses calculating VAT based on a percentage of revenue can reduce their VAT calculation rate by 20% when issuing invoices for the specified goods and services
- The decree is set to be effective from January 1, 2025, to June 30, 2025
- Relevant ministries and local government bodies are directed to ensure implementation
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.
