Continue to reduction of VAT in Vietnam until June 30, 2025

Continue to reduction of VAT in Vietnam until June 30, 2025

Business establishments calculating value-added tax (VAT) using the deduction method are subject to an 8% VAT rate on goods and services currently subject to a 10% VAT rate, excluding the following groups of goods and services:

- Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products. Details in Appendix I issued with Decree 180/2024/ND-CP.

- Goods and services subject to special consumption tax. Details in Appendix II issued with Decree 180/2024/ND-CP.

- Information technology according to information technology law. Details in Appendix III issued with Decree 180/2024/ND-CP.

- VAT reduction for each type of goods and services specified in Clause 1 of this Article shall be uniformly applied at the stages of importation, production, processing, and commercial business.

For coal mining products sold (including cases where mined coal is sold after screening and classification under a closed process), which are subject to value-added tax reduction. Coal products listed in Appendix I issued with Decree 180/2024/ND-CP at stages other than mining sales are not subject to value-added tax reduction.

General corporations and economic groups implementing the closed process for new sales are also subject to value-added tax reduction on coal mining products sold.

In cases where goods and services mentioned in Appendices I, II, and III issued with Decree 180/2024/ND-CP are not subject to VAT or are subject to a 5% VAT according to the 2008 Law on Value-Added Tax, the provisions of the Law on Value-Added Tax 2008 shall apply and no VAT reduction shall be granted.

Note: Business establishments (including business households and individual businesses) calculating value-added tax using the % method on revenue shall receive a 20% reduction in the percentage rate for calculating VAT when issuing invoices for the goods and services eligible for VAT reduction mentioned above.

Refer to the Decree 180/2024/ND-CP, effective from January 1, 2025.

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