Decree 15/2022/ND-CP stipulating tax exemption and reduction policies according to Resolution 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the program of socio-economic recovery and development takes effect from February 01st, 2022.
Accordingly, business entities that calculate VAT by the deduction method are entitled to the VAT rate of 8% for goods and services currently applying the tax rate of 10%, except for the groups of goods and services as follows:
(i) Telecommunications, financial activities, banking, securities, insurance, real estate, metals and prefabricated products, mining products (non-coal), coke, petroleum refined, chemical products. Details are in the Appendix attached with Decree 15/2022.
(ii) Goods and services subject to excise tax. Details are in Appendix II attached with Decree 15/2022.
(iii) Information technology according to the law on information technology. Details are in Appendix III attached with Decree 15/2022.
The reduction of VAT for each type of goods and services specified in Clause 1, Article 1 of Decree 15/2022/ND-CP is uniformly applied at the stages of import, production, processing, commercial business.
Selling mining coal (including the case of coal mined and then screened, classified and sold by a closed process) is subject to VAT reduction.
Coal products listed in Appendix I attached with Decree 15/2022/ND-CP are not eligible for VAT reduction at stages other than mining and selling.
In case goods and services mentioned in Appendices I, II and III attached with Decree 15/2022/ND-CP are not subject to VAT or subject to 5% VAT in accordance with the Law on VAT shall comply with the provisions of the Law on VAT and shall not be entitled to a reduction in VAT.
The above VAT reduction policy is applied from February 1st, 2022 to December 31st, 2022.
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