On June 29, 2024, the Government issued Decree No. 72/2024/ND-CP stipulating the policy for reducing value-added tax according to Resolution No. 142/2024/QH15 dated June 29, 2024, of the National Assembly.
The document is accompanied by Appendices I, II, and III, which include the "List of goods and services not eligible for value-added tax rate reduction."
Based on Clause 1, Article 1 of Decree No. 72/2024/ND-CP dated June 29, 2024, issued by the Government, which stipulates "Reduction of value-added tax for groups of goods and services currently applying the 10% tax rate, except for the following groups of goods and services."
The value-added tax reduction for each type of goods and services stipulated in Clause 1 of this Article is uniformly applied at the stages of importation, production, processing, and commercial business.
Based on Article 2 of this Decree, the value-added tax reduction rates are specified as follows:
a) Business establishments that calculate value-added tax using the deduction method are entitled to an 8% value-added tax rate for goods and services specified in Clause 1 of this Article.
b) Business establishments (including business households and individual businesses) that calculate value-added tax using the percentage method on revenue are entitled to a 20% reduction in the percentage rate used to calculate value-added tax when issuing invoices for goods and services eligible for value-added tax reduction as specified in Clause 1 of this Article.
This Decree is effective from July 1, 2024, until December 31, 2024.
