Decree No. 180/2024/NĐ-CP dated December 31, 2024, issued by the Government, prescribes the policy on value-added tax (VAT) reduction from January 1, 2025, to June 30, 2025.
VAT Reduction:
VAT will be reduced for groups of goods and services currently subject to the 10% VAT rate, except for those listed in Appendices I, II, and III issued in conjunction with this Decree.
Reduced VAT Rates:
Business entities applying the credit-invoice method for VAT calculation shall enjoy a reduced VAT rate of 8% for the goods and services specified in Clause 1 of this Article.
Business entities (including business households and individuals) applying the percentage-based method for VAT calculation on revenue shall enjoy a 20% reduction in the percentage rate used for VAT calculation when issuing invoices for goods and services eligible for the VAT reduction as specified in Clause 1 of this Article.
Implementation Guidelines:
When issuing VAT invoices for goods and services eligible for VAT reduction, the VAT rate field on the invoice must state “8%,” along with the VAT amount and the total amount payable by the buyer.
For cases where invoices have already been issued and declared using the standard VAT rate or percentage rate not yet reduced in accordance with this Decree, the seller and buyer must process the issued invoices following the laws on invoices and documents. Based on the processed invoices, the seller shall adjust the output VAT, and the buyer shall adjust the input VAT (if applicable).
Business entities specified in this Article must declare goods and services eligible for VAT reduction using Form No. 01 in Appendix IV issued in conjunction with this Decree, together with the VAT declaration.
Effective Date:
This Decree takes effect from January 1, 2025 to June 30, 2025.
Please refer to the attached file for detailed information.
