On 11 January 2022, the National Assembly issued Resolution No. 43/2022/QH15 on fiscal and monetary policies to support the program of socio-economic recovery and development, which include the section on supporting policies for the Program on socio-economic recovery and development refers to the reduction of 2% of the VAT rate in 2022, applicable to groups of goods and services currently applying the VAT rate of 10% (remaining 8%).
Later, on 28 January 2022, the Government issued Decree No. 15/2022/ND-CP stipulating tax exemption and reduction policies according to the National Assembly’s Resolution No. 43/2022/QH15 on fiscal and monetary policies to support the program of socio-economic recovery and development. The above Decree has specified the list of goods and services eligible for VAT reduction
VAT rates for goods and services are changed. Specifically, Decree No. 15/2022/ND-CP stipulating the reduction of VAT for some groups of goods and services currently applying the 10% tax rate will be reduced to 8% from 01 February 2022 to the end of 31 December 2022.
The reduction of VAT for each type of goods and services is uniformly applied for import, manufacture, process, commercial trading. For coal exploited for sale (including the case of coal mined and then screened, classified according to a closed process, then sold) subject to VAT reduction.
Groups of goods and services that meet the conditions are (i) the current VAT rate is at 10%, and (ii) do not belong to the following groups, are all entitled to a VAT rate reduction to 8%:
Goods: Cigarettes, cigars and other preparations from tobacco plants for smoking, inhalation, chewing, smelling, sucking; Alcohol; Beer; Automobiles with less than 24 seats, including cars that carry both passengers and goods with two or more rows of seats, and a fixed partition design between the passenger compartment and the cargo compartment; Two-wheeled motorcycles and three-wheeled motorcycles with a cylinder capacity of over 125cm3; Aircraft, yachts; Gasoline of all kinds; Air conditioners with a capacity less than of 90,000 BTU; Cards; Joss papers.
Services: Discotheque business; Massage, karaoke business; Casino business; prize-winning electronic games, including games with the jackpot, slot, and similar machines; Betting business; Golf business includes selling membership cards, golf tickets; Lottery business.
The article is based on applicable law at the time noted as above and may no longer be appropriate at the time the reader approaches this article as the applicable law has changed and the specific case that the reader wishes to apply. Therefore, the article is only for reference.