Legal News

[Taxation] 2% value added tax (VAT) reduction will continue from January 1, 2024 to June 30, 2024

2023/12/14

According to resolution 110/2023/QH15 of November 29, 2023, the National Assembly adopted a resolution to reduce the value added tax (VAT) rate by 2% from January 1 to June 30, 2024. The 2% VAT reduction can continue to be applied to goods and services specified in point a, Article 3, Paragraph 1.1 of Resolution 43/2022/QH15 of January 11, 2022. Details are as follows.

◆VAT tax rate on goods and services: reduced from 10% to 8%
However, 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

Reference laws:
Resolution 110/2023/QH15
Resolution 43/2022/QH15

*This article was translated by Yarakuzen.