Reduce value added tax to 8% from July 1 to December 31, 2024

The Decree stipulates a reduction in value-added tax (VAT) for groups of goods and services currently subject to a 10% tax rate, except for the following groups: 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. Details are provided in Appendix I attached to this Decree; goods and services subject to excise tax. Details are provided in Appendix II attached to this Decree; and information technology as defined by the law on information technology. Details are provided in Appendix III attached to this Decree.

The reduction of value-added tax (VAT) for each type of goods and services is applied uniformly at the import, production, processing, and commercial trading stages. For coal sold after extraction (including coal that has been mined and then screened and classified through a closed-loop process before being sold), the VAT reduction applies. Coal listed in Appendix I of this Decree is not eligible for VAT reduction at any stage other than the extraction and sale stage.

Corporations and economic groups that implement a closed-loop production process are also eligible for a reduction in value-added tax on the coal they sell.

In cases where goods and services listed in Appendices I, II, and III attached to this Decree are exempt from value-added tax or subject to a 5% value-added tax rate as stipulated in the Value-Added Tax Law, the provisions of the Value-Added Tax Law shall apply, and no value-added tax reduction shall be granted.

Furthermore, the Decree also stipulates that businesses calculating value-added tax using the deduction method are subject to an 8% value-added tax rate on goods and services eligible for value-added tax reduction. Businesses (including household businesses and individual businesses) calculating value-added tax using the percentage-based method on revenue are entitled to a 20% reduction in the percentage rate used for calculating value-added tax when issuing invoices for goods and services eligible for value-added tax reduction.

In cases where a business calculates value-added tax using the percentage-based method on revenue, when selling goods or providing services, the sales invoice must clearly state the amount of the discount as prescribed.

In cases where a business has issued an invoice and declared it at a tax rate or percentage rate for calculating value-added tax that has not been reduced as stipulated in this Decree, the seller and buyer shall process the issued invoice in accordance with the law on invoices and documents. Based on the processed invoice, the seller shall declare an adjustment to the output tax, and the buyer shall declare an adjustment to the input tax (if any).

Decree 72/2024/ND-CP also specifies the procedures for implementing value-added tax (VAT) reduction. For businesses calculating VAT using the deduction method, when issuing VAT invoices for goods and services eligible for VAT reduction, the VAT rate line should state "8%"; VAT amount; total amount payable by the buyer...

Source: https://nhandan.vn/giam-thue-gia-tri-gia-tang-xuong-8-tu-ngay-17-den-31122024-post816935.html