On November 29th, 2023, The National Assembly hold a meeting to pass the Resolution of the 6th session of the 15th National Assembly with many important contents, including a 2% reduction in VAT.
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Specifically, according to the Resolution, the National Assembly has agreed to reduce value added tax (VAT) by 2% from January 1, 2024 to June 30, 2024 for the groups of goods and services specified in point a, Section 1.1, Clause 1, Article 3 of Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Socio-economic recovery and development program.
Accordingly, reducing 2% VAT for groups of goods and services currently applying the tax rate of 10% (reduced to be 8%), except for some of the following groups of goods and services: telecommunications, information technology, financial activities, banking, stock, insurance, real estate business, metals, fabricated metal products, mining products (excluding coal mining), coke, refined petroleum manufacturing, chemical products, goods and services subject to special consumption tax.
Photo 1. Officially reducing 2% VAT until June 30th, 2024 - Hotline: 097 211 8764
Previously in June 2023, the National Assembly passed the Resolution of the 5th Session, 15th National Assembly, which agreed to reduce 2% VAT from July 1st 2023 to December 31st 2023.
It is estimated that after 3 months of implementation (from July 2023 to September 2023), the 2% VAT reduction policy has supported businesses and people with a total of about 11,700 billion VND. Thereby contributing to reducing the cost of goods and services, promoting production and business and creating more jobs for workers, contributing to stimulating consumer demand and promoting production and business development.
According to the Ministry of Finance, it is estimated that implementing the 2% VAT reduction policy in the first 6 months of 2024 is expected to reduce State Budget revenue by about 25,000 billion VND.
The solution of reducing VAT along with other tax, fee and charge solutions are creating great conditions to help businesses in reducing production costs, increase profits and the ability to stimulate demand.
Thus, with the recently passed Resolution of the 6th Session of the 15th National Assembly, after the end of 2023, VAT will continue to be reduced in the first 6 months of 2024.
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