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On December 28, 2023 the Government promulgated Decree No.94/2023/NĐ-CP providing the value-added tax reduction policy under the National Assembly's Resolution No. 110/2023/QH15 dated November 29, 2023.

Accordingly, reduce VAT for goods and service groups currently subject to the VAT 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. The details are provided in Appendix I to this Decree.

- Goods and services liable to excise tax.    The details are provided in Appendix II to this Decree.

- Information technology as prescribed by the law on information technology. The details are provided 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. Coal mined for sale (including also coal mined and then sorted out and classified under a closed process before sale) is eligible for value-added tax reduction. Coal products provided in Appendix I to this Decree at stages other than the stage of mining for sale are not eligible for value-added tax reduction.

Corporations and economic groups that carry out a closed process to sell coal products are also subject to value-added tax reduction for sold coal products.

In case the goods and services provided in Appendices I, II and III to this Decree are not liable to value-added tax or are subject to the value-added tax rate of 5% in accordance with the Law on Value-Added Tax, the Law on Value-Added Tax's provisions shall apply, and the goods and services are not eligible for value-added tax reduction.

* 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 the goods and services specified in Clause 1 of this Article.

- Business establishments (including also business households and individuals) calculating value-added tax based on 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 specified in Clause 1 of this Article.

This Decree takes effect from January 1, 2024, to the end of June 30, 2024.

For details:​ NĐ 94.pdf

Department of Enterprise Management​.