RESOLUTION PROJECT ON VAT REDUCTION

The National Assembly Standing Committee has notified their agreement to add the project on value-added tax reduction to the 5th session program of the 15th National Assembly (Quốc hội Khóa XV)

Regarding Notification No. 2298/TB-TTKQH issued on the 17th May 2023, the National Assembly Standing Committee agreed on the scope of application of the VAT reduction policy as stipulated in Resolution No. 43/2022/QH15 dated January 11, 2022, of the National Assembly on fiscal and monetary policies to support the Socio-Economic Development and Recovery Program. The applicable period is from 1 July 2023 to 31 December 2023.

Under the scope of application in Resolution No. 43/2022/QH15, a 2% reduction in the VAT on goods and services subject to a 10% VAT is applicable, except for the following goods/ services:

(i) Telecommunication, financial activities, banking activities, securities, insurance, trading of real estate, metal, precast metal products, mining products (excluding coal mining), coke mining, refined oil, chemical products;

(ii) Goods and services subject to excise tax;

(iii) Information technology.

The National Assembly shall issue a Resolution on VAT reduction with simplified order and procedures about the Resolution project of the National Assembly on VAT reduction.