On December 28, the Government issued Decree No. 94/2023/ND-CP stipulating the policy of reducing value added tax according to Resolution No. 110/2023/QH15 dated November 29, 2023 of the National Assembly .
Accordingly, value added tax will be reduced for groups of goods and services currently subject to a tax rate of 10%, except for the following groups of goods and services: Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products; Goods and services subject to special consumption tax; Information technology according to the law on information technology.
The reduction of value added tax for each type of goods and services above is applied uniformly at the stages of import, production, processing, and commercial business. For coal products sold (including coal mined and then screened and classified according to a closed process before being sold) are subject to value added tax reduction.
Corporations and economic groups that implement a closed process to sell are also subject to value-added tax reduction on coal products sold.
Value added tax reduction rate: Business establishments calculating value added tax according to the deduction method are subject to a value added tax rate of 8%.
Business establishments (including business households and individual businesses) calculating value added tax according to the percentage method on revenue are entitled to a 20% reduction in the percentage rate for calculating value added tax when issuing invoices for goods and services eligible for reduced value added tax.
The Decree takes effect from January 1, 2024 to June 30, 2024.
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