To approve the proposal to develop the National Assembly's Resolution project on value-added tax reduction in Vietnam

To approve the proposal to develop the National Assembly's Resolution project on value-added tax reduction in Vietnam (Internet image)

Regarding this issue, LawNet would like to answers as follows:

On November 1, 2023, the Government issued Resolution 179/NQ-CP on the proposal to develop a National Assembly Resolution project on value-added tax reduction.

To approve the proposal to develop the National Assembly's Resolution project on value-added tax reduction in Vietnam 

According to Resolution 179/NQ-CP dated November 1, 2023, the Government resolves as follows:

- Approve the proposal to develop the National Assembly's Resolution project on value added tax reduction as proposed by the Ministry of Finance in Proposal 228/BTC-CST mentioned above.

The Ministry of Finance receives comments from Government members in the process of developing and completing the National Assembly Resolution project in accordance with regulations and is responsible for the content, data, reports, and proposals.

- Assigning the Minister of Justice, authorized by the Prime Minister, on behalf of the Government to sign the Government's Proposal to report to the National Assembly and the National Assembly Standing Committee before 8:00 p.m. on November 1, 2023, on adding the National Assembly's Resolution project on value-added tax reduction to the 2023 Law and Ordinance Development Program and allowing the development of a draft Resolution according to shortened order and procedures, submitted to the National Assembly for approval according to the process of one National Assembly session (6th session).

The Ministry of Finance is responsible for closely coordinating with the Ministry of Justice and providing all relevant records and documents to the Ministry of Justice according to regulations, ensuring progress in reporting to National Assembly agencies as required.

More details can be found in Resolution 179/NQ-CP taking effect on November 1, 2023.

Content of consultation on VAT reduction policy for the first six months of 2024

According to Official Dispatch 11239/BTC-CST in 2023, the content of the VAT reduction policy for the first 6 months of 2024 proposed for consultation is as follows:

The implementation of VAT reduction for a number of groups of goods and services applying the 10% VAT rate has been stably implemented in 2022 and 2023.

Therefore, in Official Dispatch 10830/BTC-CST, the Ministry of Finance reported to the Prime Minister to continue reducing VAT as stipulated in Resolution 43/2022/QH15 and Resolution 101/2023/QH15, specifically:

- 2% reduction in VAT rate, applicable to groups of goods and services currently applying the 10% tax rate (to 8%), except for some of the following groups of goods and services: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metal production and production of prefabricated metal products, mining industry (excluding coal mining), coke production, refined petroleum, chemical and chemical product production, and goods and services subject to special consumption tax.

- Application period: From January 1, 2024, to June 30, 2024. Assign the National Assembly Standing Committee to consider and decide on continuing to reduce VAT after June 30, 2024. If the economic situation for businesses and people is still difficult, report to the National Assembly at the nearest session.

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