​           On June 30, 2023, the Government issued Decree No.44/2023/NĐ-CP stipulating the policy on value-added tax reduction under the National Assembly’s Resolution No. 101/2023/QH15 dated June 24, 2023.

  Accordingly, the Government grants 2% reduction of the value-added tax rate in 2022 for commodity and service groups currently subject to the value-added tax rate of 10%, except the following goods and service groups:

- Telecommunications, finance, banking, securities, insurance, real estate business, metals, precast metal products, mineral products (excluding coal exploitation), coke, refined petroleum, and chemical products. Details in Appendix I to this Decree.

- Goods and services liable to excise tax. Details in Appendix II to this Decree.

- Information technology as prescribed by the law on information technology. Details in Appendix III to this Decree.

The reduction of value-added tax for each goods or service item specified in Clause 1 of this Article shall be uniformly applied at all stages of import, production, processing, and trading.

Reduced value-added tax rates:

- Business establishments calculating value-added tax by the credit method are entitled to the value-added tax rate of 8% for goods and services.

- Business establishments (including also business households and individuals) calculating value-added tax based on a percentage of their turnover are entitled to a 20%-reduction of the percentage used to calculate value-added tax when issuing invoices for goods and services eligible for value-added tax reduction.

Order and procedures for implementation:

- A business establishment specified at Point a, Clause 2 of this Article shall, when issuing a value-added invoice for a goods or service eligible for value-added tax reduction, write “8%” in the line “value-added tax rate”; the value-added tax amount; and the total amount payable by the customer. Based on the value-added invoice, the goods or service seller shall declare output value-added tax and the goods or service purchaser shall declare input value-added tax according to the reduced value-added tax amount stated in the value-added invoice.

- A business establishment specified at Point b, Clause 2 of this Article shall, when issuing a sale invoices for a goods or service eligible for value-added tax reduction, write the full payment amount for the goods or service before tax reduction in the column “Amount” and the amount after reducing the percentage used to calculate value-added tax by 20% in the “Total amount” line, and note  “An amount of…(the money amount) subtracted, correspondingly to 20% of the percentage used for value-added tax calculation according to Resolution No. 43/2022/QH15”.

This Decree takes effect from July 1, 2023, to the end of December 31, 2023.

For details: ND 44.pdf

Department of Enterprise Management.