LATEST ANNOUNCEMENT ON VAT REDUCTION UNDER RESOLUTION NO. 204/2025/QH15
- Luật sư TRẦN VĂN LONG
- Jun 27
- 3 min read
On June 17, 2025, the National Assembly officially promulgated Resolution No. 204/2025/QH15 on the Vat reduction. Detailed provisions are specified in Official Notification No. 1492/TTTN-XD dated 2025.The issuance of this Resolution demonstrates the National Assembly’s policy orientation to continue implementing fiscal measures to support the recovery of production and business activities, stabilize the market, and promote economic growth.
1. VAT Reduction under Resolution No. 204/2025/QH15
Specifically, Clause 1, Article 1 of the Resolution stipulates:
VALUE-ADDED TAX (VAT) REDUCTION
“A 2% reduction in the VAT rate shall be applied to goods and services specified in Clause 3, Article 9 of the Law on Value-Added Tax 2024 (resulting in an 8% VAT rate), excluding the following goods and services: telecommunications, financial activities, banking, securities, insurance, real estate business, metal products, mining products (except coal), goods and services subject to special consumption tax (except gasoline).”
This means that only a limited number of specific goods and services are excluded from the VAT reduction policy.
At the same time, Clause 3, Article 9 of the Law on Value-Added Tax 2024 further affirms:
“A 10% VAT rate shall apply to goods and services not specified in Clauses 1 and 2 of this Article, including services provided by foreign suppliers without a permanent establishment in Vietnam to organizations and individuals in Vietnam via e-commerce channels and digital platforms.”
2. Effective Date of Implementation
Resolution No. 204/2025/QH15 takes effect from July 1, 2025, and remains valid until December 31, 2026.
The Department of Domestic Market Management and Development hereby notifies all traders to proactively apply, calculate, and determine appropriate retail prices for petroleum products in accordance with the effective period of this Resolution.
3. Summary of Goods and Services Subject to 0% VAT Rate
According to Clause 1, Article 9 of the Law on Value-Added Tax 2024, the 0% VAT rate is applicable to the following cases:
a) Exported goods:
Goods sold abroad and consumed outside Vietnam.
Goods sold domestically to non-tariff zones for export production purposes.
Goods sold in isolation areas to individuals (foreigners or Vietnamese citizens) who have completed exit procedures.
Goods sold at duty-free shops.
b) Exported services:
Services provided directly to foreign organizations or individuals and consumed outside Vietnam.
Services provided directly to organizations in non-tariff zones and consumed within those zones for export production purposes.
c) Other exported goods and services:
International transportation; rental of means of transport used outside Vietnamese territory.
Aviation and maritime services supporting international transportation.
Construction and installation projects carried out abroad or in non-tariff zones.
Digital content products supplied to foreign parties.
Spare parts and materials used for repairing and maintaining equipment for foreign parties.
Goods processed and re-exported under legal provisions.
Exported goods and services that are not subject to VAT, except those excluded under Point d.
d) Cases not eligible for the 0% VAT rate:
Transfer of technology and intellectual property rights abroad.
Reinsurance services, credit provision, capital transfer, derivative products.
Postal and telecommunications services.
Exported goods specified in Clause 23, Article 5 of the Law on VAT 2024.
Imported tobacco, alcohol, and beer that are subsequently exported.
Gasoline and oil purchased domestically for sale to businesses in non-tariff zones.
Automobiles sold to organizations or individuals in non-tariff zones.
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