The Government issued Decree 180/2024 regulating the reduction of VAT in 2025, free download of the list of items subject to a tax rate of 8% (reducing VAT to 8%).
On December 1, 2024, the Government issued Decree 180/2024/ND-CP stipulating the policy of reducing value added tax (VAT) from 10% to 8% according to Resolution 174/2024/QH15 issued by the National Assembly on November 30, 2024.
Previously, on November 30, 2024, the National Assembly passed Resolution 174/2024/QH15 on the 8th Session of the 15th National Assembly, which included a decision to reduce 2% of value added tax in the first 6 months of 2025.
List of goods with 2% VAT reduction in the first 6 months of 2025
Details on the VAT reduction period and items subject to 8% tax rate in the first 6 months of 2025 according to Decree 180/2024/ND-CP are as follows.
1. Time to reduce VAT to 8% according to Decree 180/2024/ND-CP
Policy implementation period: From January 1, 2025 to June 30, 2025.
2. List of goods with VAT reduced from 10% to 8% according to Decree 180
The subjects of application of the policy are all items subject to 10% VAT, except for groups of goods and services specified in the appendices attached to Decree 180/2024/ND-CP such as:
- Goods and services subject to special consumption tax are specified in detail in Appendix II: alcohol, beer, gasoline of all kinds, 2-wheeled and 3-wheeled motorbikes with a cylinder capacity of over 125 cm3 , yachts, airplanes, cigarettes, dance hall business, lottery business, karaoke business…;
- Information technology goods and services specified in Appendix III: computers, peripherals, computer parts and accessories, vending machines, ATMs, printers, scanners that can be connected to automatic data processing machines, television cameras, regular mobile phones, smartphones, tablets, smart watches, etc.;
- Other goods and services that are not eligible for VAT reduction as prescribed in Appendix I: telecommunications, insurance, securities, finance, banking, real estate, metal trading, prefabricated metal products, chemical products, mining products, etc.
The reduction of VAT from 10% to 8% according to Decree 180/2024/ND-CP is applied uniformly at all stages from import, production to processing and trading.
See details and download for free:
>> List of goods that will not have VAT reduced from 10% to 8% in 2025;
>> Appendix I: List of goods and services not eligible for VAT rate reduction;
>> Appendix II: List of goods and services subject to special consumption tax that are not eligible for VAT reduction;
>> Appendix III: List of information technology goods and services not eligible for VAT reduction.
Currently, to look up items that have VAT reduced from 10% to 8% according to Decree 180/2024/ND-CP, you can do it in one of 3 ways:
- Search by HS code;
- Search by industry code;
- Search by service or product name;
>> See details: Look up VAT-reduced items.
3. VAT reduction for the first 6 months of 2025 according to Decree 180/2024/ND-CP
According to Decree 180/2024/ND-CP, the VAT reduction rate for the above goods and services is reduced to 8% as follows:
- Business establishments calculating VAT according to the deduction method will be subject to a VAT rate of 8%;
- 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.
You may be interested in:
>> Full VAT regulations;
>> Instructions for supplementing VAT declaration.
Some questions about reducing VAT from 10% to 8% in 2025
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 2% VAT reduction include all items currently subject to 10% VAT, except for the following groups of goods and services:
- Goods and services subject to special consumption tax are specified in detail in Appendix II;
- Information technology goods and services are specified in Appendix III;
- Other goods and services are not eligible for VAT reduction as prescribed in Appendix I.
>> See details: Look up items with reduced VAT 2025.
2. When will the 8% VAT be applied according to Decree 180/2024/ND-CP?
The time to reduce VAT from 10% to 8% according to Decree 180/2024/ND-CP is from January 1, 2025 to June 30, 2025.
3. What items does the 8% VAT apply to?
VAT rate of 8% applies to all items subject to VAT rate of 10% in the first 6 months of 2025, except for groups of goods and services specified in the appendices attached to Decree 180/2024/ND-CP.
>> See details: Items subject to 8% tax rate.
4. What goods are not eligible for a 2% VAT reduction under Decree 180/2024/ND-CP?
Goods and services that are not subject to VAT reduction from 10% to 8% according to Decree 180/2024/ND-CP include: telecommunications, insurance, securities, financial activities, banking, real estate, information technology, metal trading, prefabricated metal products, chemical products, mining products (excluding coal mining), refined petroleum, coke, goods and services subject to special consumption tax.
See details:
>> Subjects subject to special consumption tax;
>> Items not eligible for VAT reduction.
5. How is the VAT reduction rate for businesses applying the VAT calculation method based on a percentage of revenue regulated?
Pursuant 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 items subject to a tax rate of 8% according to Decree 180/2024/ND-CP.
6. Is the 2% VAT reduction under Decree 180/2024/ND-CP the same as Decree 72/2024/ND-CP?
Regarding the items subject to the 8% tax rate (2% VAT reduction), the two Decrees are the same, but the time for applying the tax reduction policy is different, specifically:
- Decree 72/2024/ND-CP applies from July 1, 2024 to December 31, 2024;
- Decree 180/2024/ND-CP applies from January 1, 2025 to June 30, 2025.