On 21 May 2024, the Ministry of Finance published the draft Resolution of the National Assembly on VAT reduction for seeking public feedback before submission to the National Assembly for approval at the 7th working session of the 15th National Assembly, which takes place from 20 May 2024 to 28 June 2024 (the “Draft Resolution on VAT Reduction”).

Under the Draft Resolution on VAT Reduction, the reduction of 2% VAT would apply from 01 July 2024 to 31 December 2024. Accordingly, the VAT rate of 8% will be applied to goods and services that are subject to 10% VAT. The reduced VAT rate of 8% is however not applicable to the following goods and services:

1. Telecommunications;
2. Information and technology;
3. Banking and finance activities;
4. Securities;
5. Insurance;
6. Real estate business;
7. Manufacture of metals and prefabricated metal products;
8. Mining (not including coal mining);
9. Manufacture of coke and refined petroleum;
10. Manufacture of chemicals and chemical products;
11. Products and services subject to excise tax.

Disclaimer: This publication is for general update. This should not constitute our professional advice for a particular case, entity, or any person. Should you need further information on the matter or our professional assistance for your specific cases, please contact us.