​On December 31, 2024, the Government promulgated Decree No.180/2024/ND-CP prescribing value-added tax (VAT) reduction under the Resolution No.174/2024/QH15 dated November 30, 2024 of the National Assembly of Vietnam, which clearly stipulates the goods and services that will continue to have a 2% reduction in VAT from January 1, 2025 to June 30, 2025.

1. VAT on goods and services that are currently subject to 10% VAT shall be reduced, except the following goods and services:

- Telecommunication, financial activities, banking activities, securities, insurance, trading of real estate, metal and precast metal products, mining products (excluding coal mining), coke mining, refined oil, chemical products. Further details are provided in Appendix I enclosed herewith.

- Goods and services subject to excise tax. Further details are provided in Appendix II enclosed herewith.

- Information technology products and services as prescribed in the Law on information technology. Further details are provided in Appendix III enclosed herewith.

- VAT on goods and services of a specific type as specified in Clause 1 of this Article shall be reduced consistently in all stages, including import, production, processing and trading. Coal products mined for sale (including coal products mined and then washed, sieved and classified under a closed process before they are sold) are eligible for VAT reduction. Coal products in Appendix I enclosed herewith are not eligible for VAT reduction in any stages other than the mining stage.

Coal products produced under a closed process of economic corporations or groups shall be also eligible for VAT reduction.

In case any of the goods and services in Appendixes I, II and III enclosed herewith is not subject to VAT or is subject to 5% VAT in accordance with the Law on value-added tax, VAT on that good or service shall be paid in accordance with the Law on value-added tax and shall not be reduced.

Nghị định cũng nêu rõ mức thuế suất GTGT 8% sẽ được áp dụng cho các cơ sở kinh doanh kinh doanh hàng hóa, dịch vụ được giảm thuế khi tính thuế theo phương pháp khấu trừ.

Cơ sở kinh doanh (bao gồm cả hộ kinh doanh, cá nhân kinh doanh) tính thuế theo phương pháp tỷ lệ % trên doanh thu được giảm 20% mức tỷ lệ % để tính thuế GTGT khi thực hiện xuất hóa đơn đối với hàng hóa, dịch vụ được giảm thuế.

2. VAT reduction rates

- Business establishments that pay VAT using the credit-invoice method shall pay 8% VAT on the goods and services specified in Clause 1 of this Article.

- Business establishments (including household businesses and individual businesses) that pay VAT using the direct method (as a percentage (%) on revenue) shall be eligible for 20% reduction in the rate (%) used as the basis for calculating VAT when issuing invoices for the goods and services eligible for VAT reduction specified in Clause 1 of this Article.

This Decree  NĐ 180.pdf comes into force from January 01, 2025 to June 30, 2025. ​