- Vietnam Government proposes extending 2% VAT reduction on specific goods and services until end of 2024
- National Assembly Standing Committee gives favorable assessment of draft resolution
- Proposal aims to extend VAT reduction from 10% to 8% on selected goods and services from July 1 to end of 2024
- Scope of 2% VAT reduction was outlined in Decree 94/2023/ND-CP and Resolution No. 110/2023/QH15
- Sectors excluded from VAT reduction include telecommunications, IT, finance, banking, insurance, real estate, metals, petroleum, chemicals, and special consumption tax
- VAT reduction applies uniformly across all stages for eligible goods and services
- Companies using deduction method for VAT declaration must indicate “8 percent” as VAT rate on invoices
- Goods and services eligible for VAT reduction must be declared on Form 01 and accompany VAT returns
- 2% VAT cut has been instrumental in alleviating tax burden since implementation on January 1, 2024.
Source: vietnam-briefing.com
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.
