The Vietnamese government announced to reduce value-added tax in 2023!

The government has issued Agreement No. 44/2023/ND-CP on the VAT reduction policy on June 30, 2023.

Effective from 2023/07/01.

In order to expand relevant content in the customs field, the General Administration of Customs requires all provincial and municipal customs bureaus to implement the following content:

◎About the VAT reduction policy:

The value-added tax rate for goods subject to the 10% tax rate will be reduced by 2% (the value-added tax rate is reduced to 8%), except for telecommunications, finance, banking, securities, insurance, real estate, metals, prefabricated metal products, mining products (except coal mining), Exceptions include coke, refined petroleum, chemicals, etc.

◎Coal sold after mining can enjoy the VAT reduction policy; all other coal cannot enjoy this policy.

◎For products and services in the annex to the agreement that are not subject to VAT or are subject to the 5% VAT rate, they cannot enjoy the VAT reduction policy according to the VAT Law.

◎Business establishments that adopt the VAT deduction calculation method can apply an 8% VAT rate to goods and services that enjoy VAT reduction policies.

◎Business establishments (including self-employed households and individual businesses) that calculate VAT based on the turnover percentage method can reduce the VAT calculation rate by 20% when issuing invoices for all goods and services that enjoy the VAT reduction policy.

The agreement will be applicable from July 1, 2023 to December 31, 2023.

Source: Ministry of Finance, General Administration of Customs, Vietnam News Agency.