The National Assembly decided to reduce VAT by 8% for the first 6 months of 2025 according to Decree 180: items subject to 8% tax rate, items not subject to 8% VAT reduction
The National Assembly decided to continue reducing VAT by 2% in the first 6 months of 2025.
On November 30, 2024, the National Assembly passed Resolution 174/2024/QH15 on the 8th Session of the 15th National Assembly, which included the decision to continue implementing a 2% reduction in value added tax (VAT) in the first 6 months of 2025.
The Government is therefore assigned the task of organizing implementation and taking responsibility for ensuring the collection task and the ability to balance the state budget (NSNN) in 2025 as decided by the National Assembly.
Content of 8% VAT reduction in the first 6 months of 2025 according to Decree 180
To carry out its assigned tasks, the Government issued Decree 180/2024/ND-CP dated December 1, 2024, stipulating the policy of reducing value added tax according to Resolution 174/2024/QH15 dated November 30, 2024 of the National Assembly.
Accordingly, detailed information on the VAT reduction period and items subject to the 8% tax rate in the first 6 months of 2025 is stipulated as follows:
1. According to Decree 180/2024/ND-CP, when will the 8% VAT be applied?
Policy implementation period: From January 1, 2025 to June 30, 2025.
2. Items with 8% VAT reduction in the first 6 months of 2025
The subjects eligible for the 8% VAT reduction policy are all items currently subject to 10% VAT, except for groups of goods and services such as:
- Goods and services subject to special consumption tax;
- Telecommunications, insurance, securities, financial activities, banking, real estate business, information technology, mining industry (excluding coal mining), metals or prefabricated metal products, chemical products, refined petroleum, coke.
See details:
>> List of items not eligible for VAT reduction in 2025 (free download);
>> Look up VAT-reduced items according to Decree 180/2024/ND-CP.
Business establishments (including individual businesses and business households) applying the method of calculating VAT as a percentage of revenue will receive a 20% reduction in the percentage rate for calculating VAT when issuing invoices for goods and services eligible for tax reduction according to regulations.
Although if the 2% VAT reduction policy continues to be applied for the first 6 months of 2025, the state budget revenue will certainly be affected. Specifically, the state budget revenue is expected to decrease by about VND 26.1 trillion during this period.
However, this policy is still considered by the Government to be necessary and suitable for the current economic context. More specifically, the policy is meaningful in stimulating consumer demand, promoting production and business to recover and develop soon to contribute back to the State budget and the economy, supporting the implementation of the socio-economic development plan.
You may be interested in:
>> Full VAT regulations;
>> Instructions for adjusting VAT declaration;
>> VAT refund service;
>> Full accounting service – from 500,000 VND/month;
>> Internal accounting services – full package from 1,000,000 VND.
Some questions about the 8% VAT reduction
1. What items are subject to VAT reduction from 10% to 8% under Decree 180/2024/ND-CP?
According to Decree 180/2024/ND-CP, the subjects eligible for a reduction in value added tax to 8% include all items currently subject to 10% VAT, except for groups of goods and services such as:
- Goods and services subject to special consumption tax;
- Telecommunications, insurance, securities, financial activities, banking, real estate business, information technology, mining industry (excluding coal mining), production of metals or prefabricated metal products, production of chemicals and chemical products, production of refined petroleum, coke.
>> See details: Ways to look up VAT-reduced items according to Decree 180/2024/ND-CP.
2. When will VAT be reduced to 8% according to the National Assembly’s decision?
The time to reduce VAT from 10% to 8% according to the National Assembly’s decision is from January 1, 2025 to June 30, 2025.
3. Will the telecommunications industry get a reduction in VAT from 10% to 8%?
No. According to Resolution 174/2024/QH15, the following groups of goods and services currently subject to a VAT rate of 10% are not entitled to a 2% VAT reduction: telecommunications, insurance, securities, financial activities, banking, real estate business, information technology, mining industry (excluding coal mining), metals or prefabricated metal products, chemical products, refined petroleum, coke, goods and services subject to special consumption tax.
>> See more: List of goods with reduced VAT.
4. What is the purpose of the 8% VAT reduction policy in the first 6 months of 2025?
The purpose of the VAT policy to reduce from 10% to 8% in the first 6 months of 2025 is to stimulate consumer demand, promote production and business to recover and develop soon to contribute back to the state budget and the economy, supporting the implementation of the socio-economic development plan.