Decree 180/2024/ND-CP providing VAT reduction policy under Resolution 174/2024/QH15

DECREE

Providing the value-added tax reduction policy under the National Assembly's Resolution No. 174/2024/QH15 dated November 30, 2024

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Pursuant to the Law on Organization of the Government dated June 19, 2015 and the Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the Law on Value-Added Tax dated June 03, 2008; the Law on Amending and Supplementing a Number of Articles of the Law on Value-Added Tax dated June 19, 2013; the Law on Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration dated April 06, 2016;

Pursuant to the Law Amending and Supplementing a Number of Articles of the Laws on Taxes dated November 26, 2014;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to the National Assembly's Resolution No. 174/2024/QH15 dated November 30, 2024, on the 8^th session of the XV^th National Assembly;

At the proposal of the Minister of Finance;

The Government hereby promulgates the Decree providing the value-added tax reduction policy under the National Assembly's Resolution No. 174/2024/QH15 dated November 30, 2024.

Article 1. Reduction of value-added tax

1. To grant value-added tax reduction for the groups of goods and services currently subject to the value-added tax rate of 10%, except the following groups of goods and services:

a) Telecommunications, finance, banking, securities, insurance, real estate business, metals and precast metal products, products from mining (excluding coal mining), coke, refined petroleum, and chemical products. The details are provided in Appendix I to this Decree.

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

c) Information technology as defined in the law on information technology. The details are provided in Appendix III to this Decree.

d) The reduction of value-added tax for each type of goods and services specified in Clause 1 of this Article shall be uniformly applied at the stages of import, production, processing and trading. Coal mined for sale (including also coal mined and then undergoing sorting-and classification in a closed process before sale) is eligible for value-added tax reduction. The 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 apply the closed process for coal before sale are also eligible for value-added tax reduction for coal mined for sale.

In case the goods and services specified 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% under the Law on Value-Added Tax, they must comply with the Law on Value-Added Tax and will not be eligible for value-added tax reduction.

2. Reduced rate of value-added tax

a) Business establishments that calculate value-added tax by the credit method are eligible for the value-added tax rate of 8% for the goods and services specified in Clause 1 of this Article.

b) Business establishments (including also business households and business individuals) that calculate value-added tax by the method of turnover-based percentage are eligible for a 20%-reduction of the percentage used for value-added tax calculation when issuing invoices for the goods and services eligible for value-added tax reduction specified in Clause 1 of this Article.

3. Order and procedures for implementation

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

b) When issuing an invoice for a goods or service eligible for value-added tax reduction, a business establishment specified at Point b, Clause 2 of this Article shall write the full amount payable for the goods or service before value-added tax reduction in the column “Amount”; and write the amount already reduced by 20% of the turnover-based percentage used for value-added tax calculation in the line “Total amount”, and note “A money amount of… already reduced, equivalent to 20% of the turnover-based percentage used for value-added tax calculation under Resolution No. 174/2024/QH15”.

4. When selling goods or providing services subject to different value-added tax rates, a business establishment specified at Point a, Clause 2 of this Article shall write the value-added tax rate for each goods or service on the value-added invoice under Clause 3 of this Article.

When selling goods or providing services, a business establishment specified at Point b, Clause 2 of this Article shall write the reduced amount on the sale invoice under Clause 3 of this Article.

5. In case a business establishment has issued an invoice and declared value-added tax at the rate or the turnover-based percentage used for value-added tax calculation that has yet to be reduced under this Decree, the seller and the purchaser shall modify the issued invoice under the regulations on invoices and documents. Based on the modified invoice, the seller shall declare the adjusted output value-added tax amount and the purchaser shall declare the adjusted input value-added tax amount (if any).

6. The business establishments specified in this Article shall make declarations of goods and services eligible for value-added tax reduction according to Form No. 01 provided in Appendix IV to this Decree together with making value-added tax declaration forms.

Article 2. Effect and organization of implementation

1. This Circular takes effect from January 1, 2025, to the end of June 30, 2025.

2. Ministries, within the ambit of their functions and tasks, and provincial-level People’s Committees shall direct related agencies in disseminating, and guiding, examining and supervising the implementation of, this Decree so as to help consumers understand and benefit from value-added tax reduction under Article 1 of this Decree, focusing on solutions for stabilizing the supply and demand of goods and services eligible for value-added tax reduction in order to ensure stable market prices (value-added tax-exclusive prices) from January 1, 2025, to the end of June 30, 2025.

3. Any problems arising in the course of implementation of this Decree should be reported to the Ministry of Finance for guidance and settlement.

4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related enterprises, organizations and individuals shall implement this Decree

* All Appendices are not translated herein.