Value added tax to be cut by 2% from July 1

The value added tax (VAT) will be slashed by 2%, starting July 1. (Illustrative photo: chinhphu.vn)

Hanoi (VNA) – The Government on June 30 issued Decree No. 44/2023/ND-CP on reducing the value added tax (VAT) in line with the National Assembly’s Resolution No. 101/2023/QH15 dated on June 24, 2023.

Accordingly, the VAT cut by 2% will be applied to goods and services which are currently subject to a tax rate of 10%, except for those belonging to the groups of telecommunications, financial and banking activities, securities, insurance, real estate business, metal and cast metal products, products of mining (except for coal), coke, refined petroleum, and chemical products.

The tax reduction is consistently applied to the stages of importing, producing, processing, and trading the eligible goods and services.

Details about the goods and services not entitled to the VAT cut can be found in the appendices of the decree.

The decree is valid from July 1, 2023 until the end of December 31, 2023./. 

VNA