On 28th December 2023, the Government issued Decree No. 94/2023/ND-CP stipulating value-added tax reduction policy according to Resolution No. 110/2023/QH15 dated 29th November 2023 of the National Assembly. Accordingly, continue to reduce VAT to 8% from 1st January 2024 to 30th June 2024 for groups of goods and services currently applying the tax rate of 10%, except for the group of goods and services. next service:
- Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, and chemical products. Details are in Appendix I issued with Decree 94/2023/ND-CP.
- Products and services subject to special consumption tax. Details are in Appendix II issued with Decree 94/2023/ND-CP.
- Information technology according to the law on information technology. Details are in Appendix III issued with Decree 94/2023/ND-CP.
- The reduction of value-added tax for each type of goods and services specified in Clause 1, Article 1 of Decree 94/2023/ND-CP is applied uniformly at all stages of import, production, processing, and trading. commercial business. Sold coal products (including cases where coal is then screened and classified according to a closed process before being sold) are subject to value-added tax reduction. Coal products listed in Appendix I issued with Decree 94/2023/ND-CP, at stages other than the exploitation and sale stage, are not subject to value-added tax reduction.
Corporations and economic groups that carry out a closed process to sell are also subject to value-added tax reductions on sold coal products.
In case the goods and services listed in Appendixes I, II, and III issued with Decree 94/2023/ND-CP are not subject to value-added tax or are subject to value-added tax 5 % according to the provisions of the Law on Value Added Tax shall comply with the provisions of the Law on Value Added Tax and no reduction in value added tax is allowed.
Decree 94/2023/ND-CP takes effect from 1st January 2024 to 30th June 2024.
According to the official website of the National Assembly of Vietnam.