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Regulations on value added tax reduction policy

The Government has just issued Decree No. 174/2025/ND-CP dated June 30, 2025, stipulating the policy of reducing value-added tax according to Resolution No. 204/2025/QH15 dated June 17, 2025 of the National Assembly. The Decree takes effect from July 1, 2025 to December 31, 2026.

Báo Sơn LaBáo Sơn La03/07/2025

National Assembly deputies press the button to approve the National Assembly Resolution on reducing value added tax. (Photo: DUY LINH)
National Assembly deputies press the button to approve the National Assembly Resolution on reducing value added tax. (Photo: DUY LINH)

The Decree clearly states that 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, metal products, mining products (except coal)...; Goods and services subject to special consumption tax (except gasoline).

The Decree also clearly states that the reduction of value added tax for each type of goods and services is applied uniformly at the stages of import, production, processing, and commercial business. In case the goods and services listed in Appendices I and II issued with this Decree are not subject to value added tax or are subject to 5% value added tax according to the provisions of the Law on Value Added Tax, the provisions of the Law on Value Added Tax shall apply and no value added tax reduction shall be allowed.

For business establishments specified in Point 2, when making sales invoices for providing goods and services subject to value added tax reduction, in the "Total amount" column, fully record the amount of goods and services before reduction, in the "Total amount of goods and services" line, record the amount reduced by 20% of the % rate on revenue, and note: "reduced... (amount) corresponding to 20% of the % rate to calculate value added tax according to Resolution 204/2025/QH15.

In case the business establishment as prescribed in point 1 applies different tax rates when selling goods and providing services, the value added tax invoice must clearly state the tax rate of each good and service. Based on the invoice after processing, the seller declares and adjusts the output tax, the buyer declares and adjusts the input tax (if any).

Source: https://baosonla.vn/kinh-te/quy-dinh-chinh-sach-giam-thue-gia-tri-gia-tang-NpZUaDyHg.html


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