The National Assembly has agreed to reduce the Value Added Tax (VAT) by 2% for the first half of 2025, from January 1, 2025, to June 30, 2025, as outlined in Resolution 174/2024/QH15.
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Photo 1: National Assembly decides to reduce VAT by 2% until June 30, 2025_Hotline: 097 211 8764
Specifically, Section 8 of Resolution 174/2024/QH15 states:
"8. Continue to reduce the VAT rate by 2% for the groups of goods and services specified in point a, item 1.1, clause 1, Article 3 of Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Economic and Social Recovery and Development Program from January 1, 2025, to June 30, 2025..."
In addition, the government is tasked with organizing the implementation and ensuring the collection of taxes and the balancing of the state budget for 2025, as decided by the National Assembly.
The regulation on VAT exemptions in Decision No. 78/2010/QD-TTG by the Prime Minister will be immediately revoked, providing a legal basis for tax authorities to manage the collection of taxes from foreign e-commerce platforms selling goods into Vietnam.
The groups of goods and services that will continue to have the 2% VAT reduction from January 1, 2025, to June 30, 2025, as specified in point a, item 1.1, clause 1, Article 3 of Resolution 43/2022/QH15 include: Goods and services currently applying the 10% VAT rate (reduced to 8%), except for certain groups of goods and services:
- Telecommunications, information technology, financial activities, banking, securities, insurance, real estate business;
- Metals, products from pre-cast metals, mining products (excluding coal mining), coke, refined petroleum, chemical products;
- Goods and services subject to excise tax.
Previously, the Ministry of Finance had also drafted a decree regarding VAT reduction policies.
Resolution 174/2024/QH15 was passed by the National Assembly on November 30, 2024.
=> See more: Preferential export and import tax rates based on the list of taxable goods from December 16, 2024.
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