The Ministry of Finance is seeking comments on the draft Decree stipulating the 2% VAT reduction policy for the period from January 1, 2024 to June 30, 2024 according to Resolution 110/2023/QH15 of the Government. Congress.
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(1) Proposal for goods and services not to have VAT reduced to 8% from January 1, 2024 to June 30, 2024
Accordingly, on November 29, 2023, the National Assembly passed Resolution 110/2023/QH15 on the 6th Session, 15th National Assembly, which agreed to reduce the value added tax rate by 2% for with groups of goods and services specified in Resolution 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the socio-economic recovery and development program during the period from January 1, January 2024 to June 30, 2024.
Photo 1. Proposal for goods and services not to have VAT reduced to 8% from January 1, 2024 to June 30, 2024_Hotline: 0972118764
To implement the above content from 2024, the Ministry of Finance has issued a draft Decree stipulating a 2% VAT reduction policy. The draft has proposed a list of goods and services that are not subject to the above policy. as follows:
- Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (not including coal mining), coke, refined petroleum, chemical products;
- Products and services subject to special consumption tax;
- Information technology according to the law on information technology;
- The reduction of value-added tax for each type of goods and services specified in the Decree stipulating the 2% VAT reduction policy is applied uniformly at all stages of import, production, processing, and trading. commercial.
For sold coal products (including cases where coal is then screened and classified according to a closed process before being sold) are subject to value added tax reduction. Coal products are included in Appendix I issued with the Decree stipulating a 2% VAT reduction policy. At stages other than the exploitation and sale stage, value added tax reduction is not allowed.
Corporations and economic groups that carry out a closed process to sell are also subject to value added tax reduction on sold coal products.
In case the goods and services listed in Appendices I, II and III issued with the draft Decree stipulating the 2% VAT reduction policy are not subject to value added tax or are subject to price tax. 5% added value according to the provisions of the Law on Value Added Tax shall comply with the provisions of the Law on Value Added Tax and no reduction in value added tax is allowed.
(2) Value added tax reduction according to the Draft Decree stipulating the 2% VAT reduction policy
According to the Draft Decree on VAT reduction of 2%, the tax reduction from January 1, 2024 to June 30, 2024 will be implemented as follows:
- Business establishments that calculate value-added tax using the deduction method may apply the 8% value-added tax rate for goods and services specified in the Draft Decree on VAT reduction of 2%;
- Business establishments (including business households and individual businesses) that calculate value added tax according to the method of calculating directly on the added value by multiplying the percentage with revenue will be reduced by 20% of the rate. % to calculate value added tax when issuing invoices for goods and services eligible for value added tax reduction specified in the Draft Decree on VAT reduction of 2%.
Thus, during the period from January 1, 2024 to June 30, 2024, business establishments will be entitled to a 2% VAT reduction when falling into the above subjects according to Resolution 110/2023/QH15.
It is expected that this Draft Decree reducing VAT by 2% will take effect from January 1, 2024 to June 30, 2024.
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