The government of Vietnam issued Deree No. 72/2024/ND-CP on 30 June 2024 to extend the policy of 2% Value Added Tax (VAT) rate reduction to 31 December 2024, which was previously set to expire on 30 June 2024.
Same as before, the VAT rate reduction is applicable to goods and services currently subject to the 10% standard VAT rate, except for the following categories of goods and services:
Telecommunications, financial activities, banking, securities, insurance, real estate business, pre-cast metal and metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products.
Goods and services subject to special consumption tax.
Information technology as defined by information technology laws.
The reduction of VAT rate shall be consistently applied at various business stages across the importation, manufacturing, processing and trading phases for eligible goods and services.
Business entities calculating VAT under the deduction method can apply a VAT rate of 8% to eligible goods and services. While business entities (including households and individual businesses) calculating VAT under the percentage of turnover method will be reduced by 20% of the percentage rate to calculate VAT when issuing invoices for eligible goods and services.
KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.
