Legal News

[Taxation] Regarding the extension of the application period of the 2% VAT tax reduction measure

2023/11/02

On October 6, 2023, the Ministry of Finance issued Official Letter No. 10830/BTC-CST, and the 2% VAT reduction for goods and services that were subject to the 10% VAT in 2022 and 2023 will be extended to 2024. We proposed to the Prime Minister of Vietnam that the policy be applied until June 30th. The specific contents are as follows.

◆VAT tax rate on goods and services: reduced from 10% to 8%
Note: The following products and services are not eligible for tax reduction.

・Telecommunications, information technology,
・Fiscal and financial activities, banking, securities, insurance
・Real estate business
・Metals and metal products
・Mining products (excluding coal mining) coke, refined petroleum, chemical products, alcohol
・Products and services subject to special consumption tax such as tobacco

◆Applicable period: January 1, 2024 to June 30, 2024

The 2024 VAT reduction policy will be finalized after approval by the Diet.
We will update Law News as new information is announced.

Reference:
Official letter No. 10830/BTC-CST dated October 6, 2023

*This article was translated by Yarakuzen.