Announcement of Innovation: National Assembly Decides to Reduce 2% VAT in 2024

Officially from January 1, 2024, until the end of June 30, 2024, the National Assembly has decided to reduce the value-added tax (VAT) by 2%. This decision was approved during the 6th session of the 15th National Assembly on November 29, 2023, with unanimous support from all 477 participating deputies.

According to the resolution, the 2% tax reduction applies to the groups of goods and services currently subject to a 10% VAT, reducing it to 8%. However, this provision does not apply to certain sectors such as telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, pre-cast metal products, mineral products (except coal mining), coke, refined petroleum products, chemical products, and special consumption tax items.

The government is tasked with implementing this decision in a timely and effective manner, ensuring it does not impact the state budget revenue and expenditure estimates for the year 2024. The results of the implementation will be reported at the 7th session of the 15th National Assembly.

The National Assembly's new decision on value-added tax promises to usher in a new chapter, full of potential, and stimulate economic development.

For additional information or assistance with the VAT extension process, please contact Vietnam Australia Auditing for advice and support from reliable experts at the toll-free hotline: 0848 770 777.

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Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.