CONTINUE TO REDUCE 2% VAT UNTIL THE END OF DECEMBER 2024

CONTINUE TO REDUCE 2% VAT UNTIL THE END OF DECEMBER 2024

The National Assembly regular meeting on June 29, 2024. According to resolution, the National Assembly has agreed to reduce value added tax (VAT) by 2% from July 1, 2024 to December 31, 2024.

Cutting the VAT rate by 2% on goods and services subject to 10% rate (to 8%), except for some goods and services following: Telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to special consumption tax.

Previously, the National Assembly decided to cut the VAT rate by 2% on goods and services subject to a 10 per cent rate from January 1 to June 30. According to the recently passed Resolution of the 7th session of the 15th National Assembly, value added tax will continue to be reduced in the last 6 months of 2024.

The Ministry of Finance issued Decree No. 72/2024/ND-CP about 2% value-added tax reduction policy. Basically, the content of the Draft Decree about 2% VAT reduction based on the inheritance of the contents specified in Decree 44/2023/ND-CP.