Group of goods and services subject to 8% VAT reduction in Vietnam until the end of 2023

Group of goods and services subject to 8% VAT reduction in Vietnam until the end of 2023

VAT on goods and services that are currently subject to 10% VAT shall be reduced, except the following goods and services:

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

Further details are provided in Appendix I enclosed with Decree 44/2023/ND-CP.

- Goods and services subject to excise tax.

Further details are provided in Appendix II enclosed with Decree 44/2023/ND-CP.

- Information technology products and services as prescribed in the Law on information technology.

Further details are provided in Appendix III enclosed with Decree 44/2023/ND-CP.

- VAT on goods and services of a specific type prescribed in Clause 1 of Article 1 with Decree 44/2023/ND-CP shall be reduced consistently at all stages, including import, production, processing and trading.

Coal products mined for sale (including coal products mined and then washed, sieved and classified under a closed process before they are sold) are eligible for VAT reduction.

Coal products in Appendix I enclosed with Decree 44/2023/ND-CP are not eligible for VAT reduction at any stages other than the mining stage.

Coal products produced under a closed process of economic corporations or groups shall be also eligible for VAT reduction.

In case any of the goods and services in Appendixes I, II and III enclosed with Decree 44/2023/ND-CP is not subject to VAT or is subject to 5% VAT in accordance with the Law on value-added tax, VAT on that good or service shall be paid in accordance with the Law on value-added tax and shall not be reduced.

More details can be found in Decree 44/2023/ND-CP, effective from July 1, 2023 to the end of December 31, 2023.

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