Vietnam Government Implements VAT Reduction Until June 30, 2025

The Vietnamese government has issued Decree 180/2024/NĐ-CP, effective January 1, 2025 through June 30, 2025, implementing a VAT reduction policy based on National Assembly Resolution 174/2024/QH15. Key points:

1. The decree reduces VAT for goods and services currently subject to 10% VAT rate, with exceptions for:

• Telecommunications, finance, banking, securities, insurance, real estate
• Metals and metal products, mining products (except coal mining)
• Special consumption goods and services
• Information technology services

2. VAT reduction details:

• Businesses using VAT deduction method: Rate reduced to 8%
• Businesses using revenue percentage method: 20% reduction in the percentage rate
• For coal: Reduction applies only to direct mining sales

3. The reduction applies uniformly across import, production, processing, and commercial business stages.

This policy continues the 2% VAT reduction from previous economic recovery programs, with the government responsible for ensuring balanced state budget collection as decided by the National Assembly.

Source: baochinhphu.vn

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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