Newsletter

Decree 180/2024/ND-CP dated 31 December 2024 stipulates the policy of reducing value-added tax according to Resolution No. 174/2024/QH15 dated 30 November 2024 of the National Assembly, effective from 1 January 2025 to 30 June 2025 on goods and services subject to VAT reduction and implementation procedures

1. Reduce VAT for groups of goods and services currently applying a tax rate of 10%, except for the following groups of goods and services:

a) 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 in Appendix I issued with Decree No. 180/2024/ND-CP.

b) Goods and services subject to Special Consumption T Details in Appendix II issued with Decree No. 180/2024/ND-CP.

c) Information technology in accordance with the regulations on information technology. Details in Appendix III issued with Decree No. 180/2024/ND-CP.

d) The reduction of VAT for goods and services specified in Point 1.1 is applied uniformly at all stages including import, manufacturing, processing, and trading. For sold coal products (including cases where coal is then screened and classified according to a closed process before being sold), VAT is reduced. Coal products included in Appendix I issued with Decree No. 180/2024/ND-CP, at stages other than sale post-extraction, are not subject to VAT reduction.

2.VAT reduction rate and implementation procedures

a) Business establishments calculating VAT according to the deduction method shall apply the VAT rate of 8% to the goods and services specified in Point 1.1; when making invoices, write “8%” in the VAT rate line.

b) Business establishments calculating VAT according to the % method on revenue shall reduce the % rate for calculating VAT by 20%. When issuing invoices for goods and services eligible for tax reduction specified in Point 1.1, in the “Total amount” column, write the full amount before the reduction, in the “Total amount of goods and services” line, write the amount reduced by 20% of the % rate on revenue, and note: “reduced … (amount) corresponding to 20% of the % rate for calculating VAT according to Resolution No. 174/2024/QH15”.

c) Business establishments specified in Point 1.1 shall declare VAT reduction according to Form No. 01 in Appendix IV issued with Decree No. 180/2024/ND-CP together with the VAT Declaration.