Decree on stipulating the policy on value-added tax reduction from July 01, 2023

Accordingly, the Government grants 2% reduction of the value-added tax rate in 2022 for commodity and service groups currently subject to the value-added tax rate of 10%, except the following goods and service groups:

- Telecommunications, finance, banking, securities, insurance, real estate business, metals, precast metal products, mineral products (excluding coal exploitation), coke, refined petroleum, and chemical products. Details in Appendix I to this Decree.

- Goods and services liable to excise tax. Details in Appendix II to this Decree.

- Information technology as prescribed by the law on information technology. Details in Appendix III to this Decree.

The reduction of value-added tax for each goods or service item specified in Clause 1 of this Article shall be uniformly applied at all stages of import, production, processing, and trading.

Reduced value-added tax rates:

• Business establishments calculating value-added tax by the credit method are entitled to the value-added tax rate of 8% for goods and services.
• Business establishments (including also business households and individuals) calculating value-added tax based on a percentage of their turnover are entitled to a 20%-reduction of the percentage used to calculate value-added tax when issuing invoices for goods and services eligible for value-added tax reduction.