Vietnam Government Proposes Extending 2% VAT Reduction till End of 2024

In late May 2024, the Vietnamese government approved a draft proposal aiming to extend the VAT reduction from 10 percent to 8 percent on selected goods and services from July 1 through the end of 2024. The government subsequently submitted the draft proposal to the National Assembly seeking approval to continue implementing this VAT reduction of 2 percent on specific categories of goods and services for the latter half of 2024.

Sectors excluded from the 2 percent VAT reduction are telecommunications, IT, finance, banking, insurance, real estate, metals, prefabricated metal products, chemical products, and products and services subject to special consumption tax.

Goods and services eligible for the 2 percent VAT reduction must be declared on Form 01 prescribed in the draft Decree, which must accompany VAT returns upon submission.

Resource:VIETNAM BRIEFING