The National Assembly passed the Resolution of the 5th Session, which includes a reduction of 2% in VAT from July 1, 2023 to the end of 2023.
Officially reducing VAT by 2% from July 1, 2023 - December 31, 2023
Specifically, the Resolution of the 5th Session of the 15th National Assembly clearly states:
Regarding the implementation of 2% reduction in value added tax rate specified in item a, point 1.1, clause 1, Article 3 of the Nghi Decision No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the socio-economic recovery and development program during the period from July 1, 2023 to December 31, 2023, the Resolution assigns the Government to organize Organize timely and effective implementation, ensuring not to affect the 2023 state budget revenue and overspending estimates according to the Resolution of the National Assembly; Report implementation results along with implementation summary Resolution No. 43/2022/QH15 at the 6th Session of the 15th National Assembly.
Accordingly, from July 1, 2023, a VAT tax reduction of 2% will be implemented similar to Resolution 43/2022/QH15 until the end of 2023.
“Article 3. Support policies for the Socio-economic recovery and development program
1. Fiscal policy:
1.1. Tax exemption and reduction policy:
a) Reduction of 2% value-added tax rate in 2022, applicable to groups of goods and services currently applying the value-added tax rate of 10% (to 8%), except for some groups of goods, following services: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to special consumption tax;….”
VAT reduction policy in 2022On January 28, 2022, the Government issued Decree 15/2022/ND-CP on tax exemption and reduction policies according to Resolution 43/2022/QH15 on fiscal and monetary policies to support the Recovery and social economic development. Accordingly, VAT is reduced to 8% for groups of goods and services currently applying the tax rate of 10%, except for 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 are in Appendix I issued with Decree 15/2022. – Products and services subject to special consumption tax. Details are in Appendix II issued with Decree 15/2022/ND-CP. – Information technology according to the law on information technology. Details are in Appendix III issued with Decree 15/2022/ND-CP. The VAT reduction for each type of goods and services specified in Clause 1, Article 1 of Decree 15/2022/ND-CP is applied uniformly at all stages of import, production, processing, and commercial business. For sold coal products (including cases where coal is then screened and classified according to a closed process before being sold) are subject to VAT reduction. Coal products included in Appendix I issued with Decree 15/2022/ND-CP, at stages other than the exploitation and sale stage, are not subject to value added tax reduction. In case the goods and services listed in Appendixes I, II and III issued with Decree 15/2022/ND-CP are not subject to value-added tax or are subject to value-added tax 5% According to the provisions of the Law on Value Added Tax, it shall comply with the provisions of the Law on Value Added Tax and will not be entitled to a reduction in value added tax. The above VAT reduction policy applies from February 1, 2022 to December 31, 2022. |
