2% reduction in value added tax until June 30, 2025

From January 1 to June 30, 2025, VAT will be reduced on groups of goods and services. Photo: CN

On December 31, 2024, the Government issued Decree No. 180 stipulating the VAT reduction policy according to Resolution No. 174/2024/QH15 dated November 30, 2024 of the National Assembly.

Accordingly, from January 1 to June 30, 2025, VAT will be reduced for groups of goods and services currently subject to a tax rate of 10%, except for the following groups 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, chemical products; goods and services subject to special consumption tax; information technology according to the law on information technology.

The reduction of VAT 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 are subject to 5% VAT according to the provisions of the Law on VAT, the provisions of the Law on VAT shall apply and VAT shall not be reduced.

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

Source: https://baoquangnam.vn/giam-2-thue-gia-tri-gia-tang-den-30-6-2025-3146941.html