According to the Decree, VAT on goods and services which are currently subject to 10% VAT are reduced to 8%, except for the following goods and services:
- Telecommunications and finance, banking, securities, insurance and business of real estate, metals and precast metal products, mining products (exclusive of coal mining), coke, refined petroleum and chemical products. Details are specified in the Appendix I issued together with Decree No. 15/2022.
- Goods and service subject to excise taxes. Details are specified in the Appendix II issued together with Decree No. 15/2022.
- Information technology under the law on information technology. Details are specified in the Appendix III issued together with Decree No. 15/2022.
Reduction of the VAT for each type of goods and service specified in Clause 1 Article 1 of Decree No. 15/2022/NĐ-CP shall be applied consistently in all stages, including import, manufacture, processing and trading.
Coal mined for sale (inclusive of coal mined and then sorted out and classified under a closed process before purchased) shall be eligible for reduction of VAT.
The coal products specified in the Appendix I issued together with Decree No. 15/2022/NĐ-CP shall not be eligible for reduction of VAT in other stages except for the stage of mining and sale.
For the goods and services specified in the Appendixes I, II and III issued together with Decree No. 15/2022/NĐ-CP not subject to the VAT or subject to the 5% VAT under regulations of the Law on Value-Added Tax, the Law on Value-Added Tax shall be applied and VAT shall not be reduced.
The above-mentioned VAT reduction policies shall be applied from February 01, 2022 to December 31, 2022.
Decree No. 15/2022/NĐ-CP comes into force from February 01, 2022.
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