The government officially reduces the value-added tax by 2% for the first 6 months of 2024

In the first 6 months of the year (from 01/01 to 30/6/2024), the VAT will continue to decrease by 2% to support consumer demand and stimulate business development.

Prime Minister has recently signed Decree No. 94/2023/ND-CP on December 28, 2023, regulating the VAT reduction policy according to Resolution No. 110/2023/QH15 dated November 29, 2023, of the National Assembly.

Accordingly, in the first 6 months of the year (from 01/01 to 30/6/2024), the value-added tax will continue to decrease by 2%, as currently being implemented, to support consumer demand and promote business development.

Source: Government Newspaper

Goods and services currently subject to a 10% tax rate will be reduced to 8%, except for some groups such as telecommunications, finance, banking, securities, insurance, real estate business, metal and products from pre-cast metal, mining products (excluding coal mining), coke, refined oil, chemical products; Goods and services subject to special consumption tax; Information technology according to the law on information technology...

The reduction of VAT for each type of goods and services will be uniformly applied in the stages of import, production, processing, and business.

The reduction of VAT has been implemented in 2022 and 2023. In 2022, the National Assembly issued Resolution No. 43/2022/QH15 on financial and monetary policies to support the Program for Economic and Social Recovery and Development, which proposed a 2% reduction in VAT for some groups of goods and services subject to a 10% VAT rate from February 1, 2022, to December 31, 2022.

In 2023, facing economic difficulties, the National Assembly continued to implement the VAT reduction policy according to Resolution No. 43/2022/QH15 from July 1, 2023, to December 31, 2023, in Resolution No. 101/2023/QH15 of the National Assembly, 5th Session, XVth Legislature.

"The solution of reducing VAT along with other tax, fee, and charge reduction measures is creating significant conditions for enterprises to reduce production costs, increase profits, and enhance demand," said the Ministry of Finance.

Considering the period from 2020 to 2023, the total scale of financial support packages for the economy, businesses, and people is estimated to reach VND 700 trillion.