Continued reduction of VAT to 8 % until December 31, 2024

According to Decree 72/2024/ND-CP, the Value-Added Tax (VAT) in Vietnam will continue to be reduced to 8 % from July 1, 2024, to December 31, 2024. This reduction applies to groups of goods and services currently taxed at a rate of 10 %, with some exceptions.

Exceptions

The exceptions include telecommunications, financial activities, banking, securities, insurance, real estate business, metals and precast metal products, mineral products (excluding coal mining), coke, refined petroleum, and chemical products;
Products and services subject to special consumption tax;
Information technology products and services as prescribed in the Law on Information Technology;
The VAT reduction for each type of goods and services mentioned above is uniformly applied at all stages of import, production, processing, and commercial business. Coal products in Appendix I issued with Decree 72/2024/ND-CP, at stages other than the mining stage for sale, are not subject to VAT reduction;
General corporations and economic groups that implement a closed process before selling are also subject to VAT reduction for coal mining products sold.

Business establishments that pay VAT using the credit-invoice method shall pay 8 % VAT on the goods and services eligible for VAT reduction. Business establishments (including household businesses and individual businesses) that pay VAT using the direct method (as a percentage (%) on revenue) shall be eligible for 20 % reduction in the rate (%) used as the basis for calculating VAT when issuing invoices for the goods and services eligible for VAT reduction.

For more details, please refer to Decree 72/2024/ND-CP, effective from July 1, 2024 to December 31, 2024.

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Continued reduction of VAT to 8 % until December 31, 2024

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