VAT to be reduced by 2% from January 1

Hanoi: The value-added tax (VAT) for most of goods and services will be cut by 2% from January 1, 2024.

The government has issued Decree No. 94/2023/ND-CP regulating VAT reduction policy in line with the National Assembly’s Resolution No. 110/2023/QH15 dated November 29, 2023.

The decree reduces VAT for groups of goods and services which are currently subject to the tax rate of 10% to 8%, except for telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, and chemical products.

The VAT reduction will be applied to all stages, including import, manufacturing, processing and trading.

Decree No. 94 will take effect from July 1 until June 30, 2024./.
Source: Vietnam News Agency