- The government issued Decree No 174/2025/ND-CP on June 30, 2025, to reduce value-added tax from July 1, 2025, to December 31, 2026.
- The reduction applies to goods and services currently taxed at 10 percent, excluding telecommunications, financial activities, banking, securities, insurance, real estate, metal products, and mining products except coal.
- Goods and services subject to special consumption tax except gasoline are also excluded.
- The reduction is uniformly applied at import, production, processing, and commercial stages.
- Businesses using the deduction method will apply an 8 percent VAT rate.
- Businesses using the percentage method will receive a 20 percent reduction in the percentage rate for VAT calculation.
- Specific procedures are outlined for issuing invoices and declaring VAT for both deduction and percentage methods.
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.
