The Government’s Decree 94/2023/ND-CP on value-added tax reduction policy follows the National Assembly’s Resolution No. 110/2023/QH15 dated November 29, 2023.
Specifically, value-added tax reduction policy is applicable to the groups of goods and services currently suffering a tax rate of 10 percent, except for groups of goods and services including Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and fabricated metal products, mining products excluding coal mining, coke, refined petroleum, and chemical products.
The reduction of value-added tax for each type of goods and services is applied uniformly for the import, production, processing, and commercial business. The new policy of value-added tax reduction is also applicable to coal products including coal is then screened and classified according to a closed process before being sold. Coal products included in Appendix I issued with this Decree, at stages other than the exploitation and sale stage, are not eligible for value-added tax reduction.
Corporations and economic groups that carry out a closed process to sell are also eligible for the policy of value-added tax reduction on sold coal products.
Meanwhile, the policy also regulates that goods and services are not eligible for the new value-added tax policy or commodities paying 5 percent value-added tax according to the provisions of the Law on Value-Added Tax will follow the Law on Value-Added Tax and the Law on Value-Added Tax without enjoying a reduction in value-added tax.
Business establishments including business households and individual businesses that calculate value-added tax using the percentage-on-revenue approach are entitled to a 20-percent reduction in the percentage rate to calculate value-added tax when issuing invoices for goods and services that are eligible for value-added tax reduction.
This Decree takes effect from January 1, 2024 to June 30, 2024.
