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Discount 2% VAT from 1/7/2023 to 31/12/2023

Updated at 14/07/2023 - 05:03 pm

According to the Resolution of the 5th session, the National Assembly approved the reduction of value added tax (VAT) 2% from July 1.7.2023, 31.12.2023 to December XNUMX, XNUMX.

Officially reduce 2% VAT #

On the afternoon of June 24.6, the National Assembly officially approved the Resolution of the 5th session, the 481th National Assembly with 482/97,37 delegates voting in favor (accounting for XNUMX%).

According to the Resolution of the 5th session, the XV National Assembly, the National Assembly agreed to reduce the value-added tax (VAT) by 2% for groups of goods and services that are applying the value-added tax rate of 10% (the remaining 8 months). %).

The tax reduction does not apply to commodity groups such as telecommunications, information technology, finance, banking, securities, insurance, real estate trading, metals, prefabricated metal products, and products. mining, refined petroleum, chemical products and goods subject to excise tax.

2% VAT reduction will apply from July 1.7.2023, 31.12.2023 - December XNUMX, XNUMX #

The resolution stated: “Assigning the Government to organize the implementation in a timely and effective manner, ensuring that it does not affect the estimate of state budget revenue and overspending in 2023 according to the Resolution of the National Assembly; report on implementation results together with a summary of the implementation of Resolution No. 43”.

Previously, on behalf of the Standing Committee of the National Assembly, presenting a report on the explanation, reception and revision of the draft Resolution of the 5th session of the 2th National Assembly, Secretary General of the National Assembly Bui Van Cuong said some ideas: The proposal proposes to expand the scope of subjects entitled to a 10% reduction to apply to all groups of goods and services currently applying the 3% tax rate, raise the reduction to 4%, 5% or 2024% and extend the time limit. The policy application period is until mid-2024 or the end of XNUMX.

In this regard, according to Mr. Cuong, if the scope is further expanded, the level of value-added tax reduction will impact and greatly affect the state budget revenue, the Government has not fully calculated and assessed. about the impact of the policy, especially in the context that the state budget revenue in the first months of the year decreased more than the same period last year.

Therefore, the Standing Committee of the National Assembly asked the National Assembly for permission to keep the scope of application from July 1.7.2023, 31.12.2023 to December 2, 6 and the rate of value-added tax reduction of 2% as in the draft Resolution. The Government reports to the National Assembly at the 43th Session the results of the implementation of the policy of reducing value added tax by XNUMX% along with the results of the implementation of Resolution XNUMX for the National Assembly to consider and decide on additional support solutions. economic recovery and development (if any).

The impact of the policy on the State and businesses #

According to the Government's report, if applying a 2% reduction of VAT in the last 6 months of the year, the reduction in State budget revenue is expected to be equivalent to about VND 24.000 billion (for state budget revenue in 2023, it is expected to reduced by VND 20.000 billion due to the VAT payable in December 12 paid in January 2023).

With a 2% reduction in VAT, people are the direct beneficiaries of this policy, the reduction of VAT on goods and services subject to 10% VAT will contribute to a reduction in selling prices. directly contribute to reducing people's costs in consuming goods and services in service of people's lives.

Enterprises that produce, trade in goods and provide services subject to VAT at the rate of 10% will benefit when the policy is issued. The reduction of VAT will contribute to reducing production costs, lowering product costs, thereby helping businesses increase resilience and expand production and business.

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