The 2024 VAT reduction policy, as per Decree 94/2023/NĐ-CP, includes the following provisions:
Firstly, VAT will be reduced by 2% for groups of goods and services currently taxed at 10%, with some exceptions:
(The details of Appendices I, II, III are issued with this Decree)
Secondly, regarding the procedure for implementing the VAT reduction in 2024:
The procedure for implementing the VAT reduction is as follows:
For businesses subject to an 8% VAT rate, when issuing a value-added tax invoice for goods and services that are subject to VAT reduction, the invoice should state “8%” in the VAT rate line; the amount of value-added tax, and the total amount the buyer must pay.
Based on the value-added tax invoice, the business selling goods and services declares output VAT, while the business buying goods and services declares input VAT deduction according to the reduced tax amount stated on the value-added tax invoice.