Goods and services are not subject to VAT reduction to 8% from July 1, 2023

Which groups of goods and services will not have their VAT reduced to 8% from July 1, 2023? Please refer to the article below.

Hàng hóa dịch vụ không được giảm thuế GTGT xuống 8% từ 1/7/2023

1. Goods and services are not subject to VAT reduction to 8% from July 1, 2023

The National Assembly passed the Resolution of the 5th Session of the 15th National Assembly, which clearly stated:

Regarding the implementation of the 2% reduction in value added tax rate prescribed in Section a, Point 1.1, Clause 1, Article 3 of Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Socio-Economic Recovery and Development Program during the period from July 1, 2023 to December 31, 2023, the Resolution assigns the Government to promptly and effectively implement, ensuring that it does not affect the revenue and budget deficit estimates for 2023 according to the Resolution of the National Assembly; report the implementation results together with the summary of the implementation of Resolution No. 43/2022/QH15 at the 6th Session of the 15th National Assembly.

Section a, point 1.1, clause 1, Article 3 of Resolution 43/2022/QH15 stipulates as follows:

Article 3. Support policy for the Socio-Economic Recovery and Development Program

1. Fiscal policy:

1.1. Tax exemption and reduction policy:

a) Reduce the value added tax rate by 2% in 2022, applicable to groups of goods and services currently subject to a value added tax rate of 10% (to 8%), except for the following groups of goods and services: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to special consumption tax;

…

Thus, groups of goods and services that will not have VAT reduced to 8% from July 1, 2023 include:

Telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to special consumption tax.

2. Goods and services are not subject to VAT reduction to 8% in 2022

According to Decree 15/2022/ND-CP, VAT will be reduced to 8% for groups of goods and services currently subject to a tax rate of 10%, except for the following groups of goods and services:

- Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products. Details in Appendix I issued with Decree 15/2022/ND-CP.

- Goods and services subject to special consumption tax. Details in Appendix II issued with Decree 15/2022/ND-CP.

- Information technology according to the law on information technology. Details in Appendix III issued with Decree 15/2022/ND-CP.

- The reduction of value added tax for each type of goods and services is applied uniformly at the stages of import, production, processing, and trading. For coal products sold (including coal mined and then screened and classified according to a closed process before being sold) are subject to value added tax reduction. Coal products in Appendix I issued with Decree 15/2022/ND-CP, at stages other than mining and selling, are not subject to value added tax reduction.

In case the goods and services listed in Appendices I, II and III issued together with Decree 15/2022/ND-CP are not subject to value added tax or are subject to 5% value added tax according to the provisions of the Law on Value Added Tax, the provisions of the Law on Value Added Tax shall apply and no value added tax reduction shall be granted.

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