Vietnam to extend 2% VAT reduction policy until the end of June 2024

Vietnam to extend 2% VAT reduction policy until the end of June 2024

Specifically, VAT shall be reduced by 2% for goods and services prescribed in Point a Section 1.1 Clause 1 Article 3 of Resolution No. 43/2022/QH15 of the National Assembly of Vietnam on fiscal and monetary policies supporting the socio-economic development and recovery program from January 1, 2024 until June 30, 2024.

The Government of Vietnam is assigned to promptly and effectively carry out the implementation without affecting the estimate of state budget revenue and deficit in 2024 according to the Resolution of the National Assembly of Vietnam and submit reports on the implementation results to the National Assembly of Vietnam in the 7th meeting session of the 15th National Assembly of Vietnam.

Previously, on June 24, 2023, the National Assembly of Vietnam approved Resolution No. 101/2023/QH15 on the 5th meeting session of the 15th National Assembly of Vietnam.

According to the Resolution, Vat shall be reduced by 2% for goods and services prescribed in Point a Clause 1.1 Article 3 of Resolution No. 43/2022/QH15 of the National Assembly of Vietnam on fiscal and monetary policies supporting the socio-economic development and recovery program from July 1, 2023 until December 31, 2023.

The Government of Vietnam is assigned to organize the implementation in a prompt and effective manner and strive to achieve objectives without affecting the estimate of state budget revenue and deficit in 2023 according to the Resolution of the National Assembly of Vietnam; and report on the implementation of the aforesaid policies and review the implementation of Resolution No. 43/2022/QH15 at the 6th meeting session of the 15th National Assembly of Vietnam.

Specifically, according to Resolution No. 43/2022/QH15: Reduce 2% of VAT in 2022 for goods and services currently subject to 10% VAT (to 8%), except for the following goods and services: 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, goods and services subject to excise tax; etc.

See more details in Resolution No. 110/2023/QH15 dated November 29, 2023.

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