List of sectors that are not eligible for a 2% VAT reduction

Continuing to reduce VAT to 8% will create motivation for business development. What solutions will increase total retail sales and consumer service revenue in the second half of 2024?

On June 30, the Government issued Decree No. 72/2024/ND-CP stipulating the policy of reducing value-added tax (VAT) according to Resolution No. 142/2024/QH15 dated June 29, 2024 of the National Assembly.

kinh doanh bất động sản là một trong số các lĩnh vực không được giảm thuế VAT

Real estate business is one of the sectors that is not eligible for VAT reduction.

The Decree clearly states that VAT will be reduced for groups of goods and services currently subject to a tax rate of 10%, effective from July 1, 2024 to December 31, 2024.

The sectors that are not eligible for VAT reduction are: Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products; goods and services subject to special consumption tax.

VAT reduction for each type of goods and services is applied uniformly at the stages of import, production, processing, and commercial business.

In case goods and services are not subject to VAT or subject to 5% VAT according to the provisions of the Law on Value Added Tax, the provisions of the Law on Value Added Tax shall apply and VAT shall not be reduced.

Business establishments calculating VAT by the deduction method shall apply a VAT rate of 8% to goods and services eligible for VAT reduction. Business establishments (including business households and business individuals) calculating VAT by the percentage method on revenue shall have a 20% reduction in the percentage rate for calculating value added tax when issuing invoices for goods and services eligible for VAT reduction.

Previously, on June 29, the National Assembly voted to pass the Resolution of the 7th session. Accordingly, the National Assembly agreed to extend the application of 8% VAT, a 2% reduction compared to the current rate, until the end of this year. A 2% reduction in VAT will help people save on spending and living expenses, bringing about a psychological impact, helping to stimulate demand and increase consumption.

Source: https://congthuong.vn/diem-ten-cac-linh-vuc-khong-duoc-giam-2-thue-vat-329351.html