The Decree specifies that VAT will be reduced for groups of goods and services currently subject to a 10 percent tax rate, except for the following groups of goods and services such as telecommunications, financial activities, banking, securities, insurance, real estate business, metals and metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to special tax, information technology according to the law on information technology.
The VAT reduction for each type of goods and services will be applied uniformly at import, production, processing, and commercial trading stages.
In the case of goods and services specified in this Decree that are not subject to VAT or are subject to a 5-percent VAT rate according to the provisions of the VAT Law, they will be treated in accordance with the provisions of the VAT Law and will not be eligible for VAT reduction.
According to Decree 72/2024/ND-CP, business establishments calculating VAT under the deduction method will apply a VAT rate of 8 percent to goods and services for which VAT is reduced. Business establishments (including households and individual businesses) calculating VAT under the percentage of turnover method will be reduced by 20 percent of the percentage rate to calculate VAT when issuing invoices for goods and services for which VAT is reduced.
The Decree 72/2024/ND-CP takes effect from July 1 to December 31.
