On December 31st, 2024, the Government issued Decree No. 180/2024/ND-CP, accordingly:
The reduction of VAT for groups of goods and services currently subject to the tax rate of 10% reduced to 8%, excluding the following group of goods and services:
– 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;
– Goods and services subject to special consumption tax;
– Information technology according to the law on information technology;
The VAT reduction for each type of goods and services specified in Clause 1, Article 1 of Decree No. 180/2024/ND-CP is uniformly applied at all stages of importation, production, processing, and commercial business.
VAT reduction rate:
Corresponding to the two VAT calculation methods, the VAT reduction rate is stipulated as follows:
– Business establishments calculating VAT by the deduction method: Apply the VAT rate of 8% for the group of goods and services subject to the tax rate of 10% (excluding the goods and services mentioned above).
– Business establishments (including business households and individuals) calculating VAT by the percentage method on revenue: The 20% reduction in the percentage rate is applied to calculate VAT when issuing invoices for goods and services eligible for the reduction mentioned above.
This Decree takes effect from January 01st, 2025 to June 30th, 2025.
