Vietnamese Government agree to extend VAT cut until mid-2024

On the morning of 29 Nov 2023, with the presence and unanimous approval of 100% of National Assembly delegates, the National Assembly passed the resolution of its 6th session for the 15th term.

The National Assembly agreed to reduce the value-added tax (VAT) rate by 2% for the specified groups of goods and services as outlined in Resolution 43/2022 of the National Assembly, from January 1 to June 30, 2024.

The 2% reduction in VAT applies to groups of goods and services that currently have a tax rate of 10%, effectively lowering it to 8%.

However, certain groups of goods and services are excluded from this reduction, including telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, pre-forged metal products, mineral products (excluding coal mining), coke, refined petroleum, chemical products, and goods and services subject to special consumption tax.