On June 8, 2024, Vietnamese Government officially issued Resolution No. 83/NQ-CP on the National Assembly's Resolution project on value added tax (VAT) reduction as proposed by the Ministry of Finance in Report No. 127/TTr-BTC
If we continue to implement the VAT reduction policy in the last 6 months of the year, the expected budget in 2024 will decrease by VND 47,488 billion; however, this policy will have a positive effect by stimulating production and promoting business activities, thereby generating revenue for the state budget..
The 2% VAT reduction policy is applied to goods and services currently subject to 10% VAT ( 10 -> 8%), except for the following goods and services: telecommunications, information technology, financial activities, banking, securities, insurance, real estate transactions, metal production and production of prefabricated metal products, coal mining, refined petroleum, production of chemicals and chemical products, along with goods and services subject to special consumption tax.
The application period for the 2% value added tax reduction is from July 1, to December 31, 2024. Ken Logistics will update more when there is a decree with specific instructions.