Vietnam to reduce VAT to 8% in first 6 months of 2024

Vietnam to reduce VAT to 8% in first 6 months of 2024 

Specifically, the following goods and services are ineligible for the VAT reduction: 

- Telecommunications, finance, banking, securities, insurance, trading of real estate, metals and prefabricated metal products, mining products (exclusive of coal mining), coke coal, refined petroleum, chemical products. Details are specified in Appendix I enclosed with Decree No. 94/2023/ND-CP. 

- Excisable goods and services. Details are specified in the Appendix II enclosed with Decree No. 94/2023/ND-CP. 

- Information technology under the law on information technology. Details are specified in the Appendix III enclosed with Decree No.94/2023/ND-CP.

- The reduction of VAT for each category of goods and services according to the above regulations shall be consistently applied in all stages, including import, manufacture, processing, and commercial business. 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 No. 94/2023/ND-CP, are not eligible for VAT reduction in any stages other than the mining stage.

Economic corporations applying the closed process before sale are also eligible for VAT reduction for the coal products mined for sale.

If the goods and services specified in Appendixes I, II, and III enclosed with Decree No. 94/2023/ND-CP are not subject to VAT or are subject to 5% VAT under regulations of the Law on Value-Added Tax, they shall apply the Law on Value-Added Tax and are not eligible for VAT reduction.

See more details in Decree No. 94/2023/ND-CP, which comes into force as of January 1, 2024 until the end of June 30, 2024. 

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