Decree on value-added tax reduction in 2024

The Government issued the Decree on providing the value-added tax reduction policy under the National Assembly’s Resolution No. 110/2023/QH15 dated November 29, 2023.

Accordingly, the Decree prescribes the reduction of the value-added tax rate 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.

Accordingly: 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 VAT reduction.

value-added tax reduction in 2024
 Reduction subject to the value-added tax rate of 10% (Illustration)


Coal products specified in Appendix I to this Decree which are at stages other than the stage of mining for sale are not eligible for VAT reduction.

Corporations and economic groups that carry out a closed process to sell coal products are also subject to value-added tax reductions 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% and the goods and services are not eligible for value-added tax reduction.

Decree No. 94/2023/ND-CP takes effect on January 01, 2024 to the end of June 30, 2024.
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