Previously, on January 11, 2022, the National Assembly issued Resolution No. 43/2022/QH15 stipulating fiscal and monetary policies for supporting socio-economic recovery and development program (hereinafter referred to as “Resolution 43/2022/QH15”). Accordingly, the National Assembly has approved the policy of reducing 2% of VAT in 2022 for goods and services currently subject to 10% VAT, except for the following goods and services: telecommunication, financial activities, banking activities, securities, insurance, trading of real estate, metal, precast metal products, mining products (excluding coal mining), coke mining, refined oil, chemical products, goods and services subject to on special sales tax. This means that the VAT rate for the above goods and services is only 8%.

In order to guide the implementation of the above Resolution 43/2022/QH15, the Government issued Decree No. 15/2022/ND-CP stipulating tax exemption and reduction under Resolution no. 43/2022/QH15 of National Assembly on fiscal and monetary policies for supporting socio-economic recovery and development programs. In particular, this Decree clearly stipulates that the mentioned VAT reduction policy shall take effect from February 01, 2022 to the end of December 31, 2022.

Therefore, from January 1, 2023, goods and services that were previously eligible for VAT reduction policy will return to the original tax rate of 10%.