According to the Ministry of Finance, in the current difficult context, continuing to implement the current 2% value added tax reduction to apply in the first 6 months of 2024 to support businesses and people is important. necessary. Through today’s article, let’s join Pham Consult to find out which groups of goods and services are proposed to reduce 2% VAT for 2024!
Recently, the Ministry of Finance issued Official Dispatch 11239/BTC-CST in 2023 asking for opinions on reducing VAT in the first 6 months of 2024.
In Section 2 of Official Dispatch 11239/BTC-CST of 2023, it is stated that the implementation of VAT reduction for a number of groups of goods and services currently applying the 10% VAT rate has been implemented stably in 2022. and 2023. Therefore, in Official Dispatch 10830/BTC-CST, the Ministry of Finance reported to the Prime Minister to continue reducing VAT as stipulated in Resolution 43/2022/QH15 and Resolution 101. /2023/QH15, specifically:
– 2% reduction in VAT rate, applicable to groups of goods and services currently applying the 10% tax rate (to 8%), except for some of the following groups of goods and services:
+ Telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metal production and production of prefabricated metal products, mining industry (excluding coal mining), production of coke, refined petroleum, production of chemicals and chemical products, goods and services subject to special consumption tax.
When will the 2024 VAT reduction period last?
Also in Official Dispatch 11239/BTC-CST in 2023, the Ministry of Finance presented a proposal to reduce VAT for 2024 specifically as follows:
– From January 1, 2024 to June 30, 2024. Assign the National Assembly Standing Committee to consider and decide on continuing to reduce VAT after June 30, 2024 if the economic situation, businesses and people are still difficult, and report to the National Assembly at the upcoming session. best.
What is the VAT reduction policy according to Resolution 101/2023/QH15 and Decree 44/2023/ND-CP?
Regarding subjects who are and are not eligible for VAT reduction:
In order to implement Resolution 101/2023/QH15, according to the provisions of Article 1 of Decree 44/2023/ND-CP, reducing value added tax for groups of goods and services currently applying the tax rate of 10% , except for the following groups of goods and services:
– Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products. Details are in Appendix I issued with Decree 44/2023/ND-CP.
– Products and services subject to special consumption tax. Details are in Appendix II issued with Decree 44/2023/ND-CP.
– Information technology according to the law on information technology. Details are in Appendix III issued with Decree 44/2023/ND-CP.
– The reduction of value added tax for each type of goods and services specified in Clause 1, Article 1 of Decree 44/2023/ND-CP is applied uniformly at all stages of import, production, processing, and trading. commercial business. For sold coal products (including cases where coal is then screened and classified according to a closed process before being sold) are subject to value added tax reduction. Coal products listed in Appendix I issued with Decree 44/2023/ND-CP, at stages other than the exploitation and sale stage, are not subject to value added tax reduction.
Corporations and economic groups that carry out a closed process to sell are also subject to value added tax reduction on sold coal products.
In case the goods and services listed in Appendixes I, II and III issued with Decree 44/2023/ND-CP are not subject to value-added tax or are subject to value-added tax 5 % according to the provisions of the Law on Value Added Tax shall comply with the provisions of the Law on Value Added Tax and no reduction in value added tax is allowed.
Regarding the reduced VAT rate:
Pursuant to Clause 2, Article 1 of Decree 44/2023/ND-CP stipulates as follows:
– Business establishments that calculate VAT using the deduction method: are entitled to apply the 8% VAT rate to groups of goods and services subject to a 10% tax rate (except for some goods and services mentioned in section 1 of this article). write).
– Business establishments (including business households and individual businesses) calculate VAT according to the percentage method on revenue: 20% reduction in the percentage rate to calculate VAT when issuing invoices for goods. Goods and services are subject to tax reduction.
Regarding the time to reduce 2% VAT:
Pursuant to Article 2 of Decree 44/2023/ND-CP regulating the time to reduce 2% VAT:
– Decree 44/2023/ND-CP takes effect from July 1, 2023 to December 31, 2023, corresponding to the VAT reduction period from July 1, 2023 to December 31 /2023.
– Ministries according to their functions and tasks and People’s Committees of provinces and centrally run cities direct relevant agencies to deploy propaganda, guidance, inspection and supervision so that consumers understand and enjoy the benefits. from the reduction of value-added tax specified in Article 1 of Decree 44/2023/ND-CP, which focuses on solutions to stabilize supply and demand of goods and services subject to value-added tax reduction in order to keep Stabilize the market price level (price without value added tax) from July 1, 2023 to December 31, 2023.
– During the implementation process, if any problems arise, the Ministry of Finance shall guide and resolve them.
– Ministers, Heads of ministerial-level agencies, Heads of Government agencies, Chairmen of People’s Committees of provinces and centrally-run cities and relevant businesses, organizations and individuals are responsible Implement Decree 44/2023/ND-CP.
Thus, through the article on Pham Consult, we have helped you learn about the group of goods and services that will enjoy a 2% value-added tax reduction in 2024. Hope this information will help your work.