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Sunday, June 16, 2024

Value added tax reduced until middle of next year

The Saigon Times

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HCMC – Goods and services except for some sectors will be entitled to a two-percentage-point reduction of value-added tax (VAT) until the middle of the year 2024.

According to a decree recently issued by the Government following the National Assembly’s Resolution, the incentive VAT rate of 8% on goods and services will remain till the end of June next year. However, sectors such as banking, securities, real estate, and telecommunications will continue to be excluded from this VAT reduction.

This VAT reduction applies uniformly throughout all stages, from importation and production to processing and trading. Goods and services not eligible for VAT or subject to a 5% VAT rate will adhere to existing regulations and are not entitled to a VAT cut.

In the face of both local and global economic challenges, the Government sees the VAT cut as a crucial measure to provide support to businesses and households.

Previously, a two-percentage-point VAT reduction was implemented on July 1, 2023 on numerous goods and services previously taxed at a rate of 10%.

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