On December 28, 2024, the Government officially issued Decree No. 94/2023/NĐ-CP dated December 28, 2023, stipulating the policy of reducing value-added tax (VAT), according to Resolution No. 110/2023/QH15 dated November 29, 2023, of the National Assembly with the aim of supporting the people, businesses, and the economy in the new period (“Decree 94”).

Now, let’s delve into the details with Bizlawyer!

According to Decree No. 94, the reduction of value-added tax (“VAT”) applies to groups of goods and services currently subject to a tax rate of 10%, excluding the following groups: telecommunications, financial activities, banking, securities, insurance, real estate business, metals and pre-cast metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products; goods and services subject to special consumption tax, information technology under the laws on information technology… Specifically as follows:

The reduction of VAT for each type of goods and services is uniformly applied at import, production, processing, and trade stages.

For coal products sold (including cases where coal is mined and then screened and classified according to the new closed process before being sold), they are eligible for VAT reduction. Coal products listed in Appendix I issued with this decree, at stages other than the sales stage, are not eligible for VAT reduction.

State-owned corporations, economic groups implementing the new closed process for coal products sold are also eligible for value-added tax reduction for coal products.

In cases where goods or services fall within the category not subject to value-added tax or the category subject to a 5% value-added tax according to the provisions of the Value Added Tax Law, the regulations of the Value Added Tax Law apply, and no value-added tax reduction is allowed.

The above is the entire content of the News: Official reduction of 2% value-added tax for the first 6 months of 2024.

This decree is effective from January 01, 2024, until June 30, 2024.

* This news is only intended to provide information about newly issued legal regulations and is not used for specific advice or application in individual cases.

Hope this information is useful to our valued readers.