Official Dispatch No. 67/CST-GTGT dated April 7, 2023 of the Tax Policy Department to the General Department of Taxation and the General Department of Customs on proposing a VAT reduction plan in 2023.
Accordingly, in order to stimulate consumption demand, recovery and economic development, if the case of 2% reduction for goods and services is subject to the tax rate of 10% (remaining 8%) according to the following options:
- Option 1: Reduce the VAT rate by 2% for the group of goods and services subject to the tax rate of 10% (down to 8%).
- Option 2: Reduce 2% of the VAT rate for groups of goods and services that are applying the 10% VAT rate (remaining 8%), except for some groups of goods and services as applied in 2022 according to Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies to support the socio-economic recovery and development program.
Regarding the implementation time of 02 options: since the policy was issued until the end of December 31, 2023 (expected from July 1, 2023 to the end of December 31, 2023).