Updated at 01/07/2024 - 08:27 am
According to the new Resolution of the 6th Session passed by the 2th National Assembly, the 1.1.2024% value added tax (VAT) reduction will continue to be implemented from January 30.6.2024, XNUMX to June XNUMX, XNUMX.
1. Officially reduce 2% VAT applicable from January 1.1.2024, 30.6.2024 - June XNUMX, XNUMX #
On the morning of November 29, the National Assembly passed the Resolution of the 11th Session of the 6th National Assembly with 477/477 delegates voting in favor (accounting for 96,56%).
Notably, the National Assembly has agreed to reduce VAT by 2% from January 1, 1 to June 2024, 30. The 6% reduction in VAT rate will be applied to groups of goods and services currently applying the 2024% VAT rate (to 2%). Tax reduction will not be applied to the group of goods subject to special consumption tax, similar to the Resolution of the 10th session, the 8th National Assembly agreed to reduce VAT by 5% from July 2, 1 - December 7, 2023.
Thus, with the recently passed Resolution of the 6th Session of the 2023th National Assembly, after the end of 6, VAT will continue to be reduced in the first 2024 months of XNUMX.
The National Assembly assigned the Government to organize timely and effective implementation, without affecting the estimated State budget revenue and deficit in 2024 according to the Resolution of the National Assembly, and report to the National Assembly on implementation results at the Session. Saturday, 7th National Assembly.
Impact of tax reduction policy on the State and businesses
According to the Ministry of Finance, it is estimated that implementing the 2% VAT reduction policy in the first 6 months of 2024 is expected to reduce State Budget revenue equivalent to about 25.000 billion VND.
The solution to reduce VAT by 2% along with other tax, fee and charge solutions will contribute to helping businesses reduce production costs, increase profits, and increase the ability to stimulate demand, thereby helping businesses increase their ability to restore and expand production and business.
For people, the policy of reducing 2% VAT on goods and services subject to a 10% VAT rate will reduce selling prices, thereby reducing people's costs in consuming goods and services. serving life.
2. How are the 2024 VAT rates determined? #
Pursuant to the Resolution of the 6th Session of the 2008th National Assembly, the VAT Law 44, Decree 2023/2024/ND-CP, the XNUMX VAT rate will have the following tax rates:
VAT rate 0%
Pursuant to the provisions of Clause 1, Article 8 of the 2008 VAT Law (amended by Clause 3, Article 1 of the 2013 amended VAT Law; Clause 2, Article 1 of the VAT Law, the Law on Special Consumption Tax and the revised Law on Tax Administration). 2016) stipulates a tax rate of 0% applicable to exported goods and services, international transportation and goods and services not subject to VAT specified in Article 5 of the 2008 VAT Law when exported, except the following cases:
- Technology transfer, intellectual property rights transfer abroad;
- Overseas reinsurance services;
- Credit granting services;
- Capital transfer;
- Derivative financial services;
- Postal and telecommunications services;
- Export products specified in Clause 23, Article 5 of this Law.
Exported goods and services are goods and services consumed outside Vietnam, in non-tariff zones; goods and services provided to foreign customers according to Government regulations.
5% VAT rate:
Pursuant to the provisions of Clause 2, Article 8 of the 2008 VAT Law (supplemented by Clause 3, Article 1 of the 2013 Amended VAT Law; Points b, c, k of this Clause are respectively amended and abolished by Clause 2, Clause 3, Article 3 of the Law on Amendments to Tax Laws 2014) stipulates a tax rate of 5% applicable to the following goods and services:
- Clean water for production and daily life;
- Ore for fertilizer production; Pesticides and growth stimulants for animals and plants
- Excavation and dredging services of canals, ditches, ponds and lakes for agricultural production; cultivating, caring for, and preventing pests and diseases of plants; preliminary processing and preservation of agricultural products;
- Unprocessed crop, livestock and aquatic products, except for products specified in Clause 1, Article 5 of this Law;
- Preliminarily processed rubber latex; Pre-processed resin; nets, ropes and yarn for weaving fishing nets;
- Fresh food; Unprocessed forest products, except wood, bamboo shoots and products specified in Clause 1, Article 5 of this Law;
- Road; by-products in sugar production, including molasses, bagasse, and sludge;
- Products made of jute, sedge, bamboo, leaves, straw, coconut shells, coconut skulls, water hyacinth and other handicraft products made with materials salvaged from agriculture; pre-processed cotton; newsprint;
- Medical equipment and tools, cotton, medical sanitary napkins; preventive and curative drugs; Pharmaceutical chemical products and medicinal materials are raw materials for the production of curative and preventive drugs;
- Teaching tools used for teaching and learning, including models, drawings, boards, chalk, rulers, compasses and specialized equipment and tools for teaching, research and scientific experiments;
- Cultural activities, exhibitions, physical training and sports; performing arts, film production; import, distribution and screening of films;
- Toys for children; Books of all kinds, except books specified in Clause 15, Article 5 of this Law;
- Scientific and technological services according to the provisions of the Law on Science and Technology.
VAT rates 10% and 8%:
According to Resolution 44/2023/ND-CP, Resolution 43/2022/QH15 and Resolution 101/2023/QH15, the tax rate of 8% applies to groups of goods and services currently applying 10%, except for some groups. goods as prescribed in Clause 1, Article 1 of Decree 44/2023/ND-CP.
Pursuant to the provisions of Clause 3, Article 8 of the 2008 VAT Law, the 10% VAT rate applies to goods and services that do not apply the 0% and 5% tax rates and the 8% group.
3. Order and procedures for applying VAT reduction #
For business establishments that calculate VAT using the deduction method, the 8% VAT rate for goods and services shall be applied as follows:
- When preparing a VAT invoice for the provision of goods and services subject to VAT reduction, write "8%" in the VAT rate line; value added tax; total amount the buyer must pay.
- Based on the VAT invoice, business establishments selling goods and services declare output VAT, business establishments purchasing goods and services declare and deduct input VAT according to the reduced tax amount recorded on the invoice. .
For business establishments (including business households and individual businesses) that calculate VAT using the direct method of calculating VAT by multiplying the percentage with revenue, the percentage rate will be reduced by 20% to calculate VAT. When issuing invoices for goods and services eligible for VAT reduction:
- When making a sales invoice for providing goods and services subject to VAT reduction, in the "Amount" column, write the full amount of goods and services before reduction.
- In the line "Add money for goods and services" write down the number that has reduced the percentage of revenue by 20%, and also note: "reduced... (amount) corresponding to 20% of the percentage to calculate tax. VAT according to Resolution No..../2023/QH15".
