LAW

VAT is cut by 2 percent from July 1

The Government on June 30 issued Decree 44, approving the application of 8-percent value added tax rate for a number of goods and services.
VAT is cut by 2 percent from July 1
The Government on June 30 issued Decree 44, approving the application of 8-percent value added tax rate for a number of goods and services.
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Customers at Co.opmart supermarket, Ha Dong district, Hanoi__Photo: VNA

The Government on June 30 issued Decree 44, approving the application of 8-percent value added tax (VAT) rate for a number of goods and services.

The tax reduction is consistently applied from the stages of importing, producing, processing, and trading of goods and services, according to the decree.

Designed in line with the National Assembly’s Resolution 101 dated June 24, the decree does not apply to goods and services in the groups of telecommunications, financial and banking activities, securities, insurance, real estate business, metal and cast metal products, mining products (except coal), coke, refined petroleum, and chemical products.

Goods and services subject to excise tax and those in information technology field are not entitled to the 2-percent reduction of VAT rate.

Details about the goods and services not entitled to the VAT cut can be found in appendices of the decree.

The decree is valid from July 1 until the end of December 31 this year.- (VLLF)

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