Update: | Compliance Alert - VAT rate temporarily reduced to 8% until 31 December 2024 |
Date: | 2024-07-05 |
On 30 June 2024, the Government of the Socialist Republic of Vietnam published Decree No. 72/2024/ND-CP, following the National Assembly’s Resolution No. 142/2024/QH15 from 29 June 2024. The Decree reduces the value-added tax (VAT) from 10% to 8% between 1 July and 31 December 2024.
The temporary VAT reduction to 8% applies to goods and services currently subject to 10% VAT. It applies uniformly at the stages of import, production, processing, and commercial business with some exceptions, for example:
- 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;
- Goods and services subject to special consumption tax;
- Information technology according to the law on information technology.
No VAT reduction is allowed for goods and services not subject to VAT or 5% VAT and listed in Appendices I-III of Decree No. 72/2024/ND-CP as per provisions of the Law on Value Added Tax.