ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø

On 29 June 2024, the National Assembly has passed the proposal to continue the reduction of Value Added Tax (�VAT�) rate for most of goods and services, which are currently subject to the tax rate of 10%, under Resolution No. 142/2024/QH15.

On 30 June 2024, the Government issued Decree 142/2024/ND-CP (�Decree 142�) on VAT reduction following Resolution No. 142/2024/QH15, specifically:

• Reduce VAT for groups of goods and services which are currently subject to the tax rate of 10% to 8%, except for the following groups:
  • Telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products (Details stipulated under Appendix I issued together with Decree 72);
  • Goods and services subject to Special Consumption Tax (Details stipulated under  Appendix II issued together with Decree 72);
  • Information technology in accordance with the regulations on information technology (Details stipulated under Appendix III issued together with Decree 72).
• The VAT reduction applies to all stages, including import, manufacturing, processing and trading.
• The VAT reduction is applicable to business establishments that adopt VAT credit method and business establishments (including business households and business individuals) that declare and pay VAT at a deemed rate (%) of revenue.

Decree 72 takes effect from 01 July 2024 until 31 December 2024. Please contact ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø for further consultation on your ongoing queries.