On June 17, the National Assembly passed a Resolution on the reduction of value-added tax (VAT).
According to the Resolution, a 2% reduction in VAT will be applied to groups of goods and services specified in Clause 3, Article 9 of the Value-Added Tax Law No. 48/2024/QH15 (reducing the VAT rate to 8%), excluding certain sectors such as telecommunications, finance, banking, securities, insurance, real estate business, metal products, mineral products (excluding coal), and goods and services subject to special consumption tax (excluding gasoline).
This Resolution will take effect from July 1, 2025, and remain valid until December 31, 2026.
According to Minister Nguyễn Văn Thắng, this draft Resolution expands the list of eligible sectors compared to previous VAT reduction Resolutions passed by the National Assembly, and extends the reduction period until the end of 2026. Accordingly, businesses in transportation, logistics, goods handling, and information technology services are now eligible for VAT reduction.
In addition, under current VAT law, educational and vocational training activities, as well as healthcare services, are not subject to VAT and therefore do not require a tax reduction.
Furthermore, sectors such as finance, banking, securities, and insurance are also not subject to VAT under current laws and thus are not eligible for the reduction. Meanwhile, industries such as telecommunications and real estate, which have experienced growth recently, are not included in the scope of VAT reduction as per Resolution No. 43/2022/QH15.
According to the Government’s proposal in Submission No. 206/TTr-CP dated April 16, 2025, the projected reduction in state budget revenue from this policy is approximately VND 121.74 trillion over the second half of 2025 and all of 2026 (of which around VND 39.54 trillion in the last six months of 2025 and VND 82.2 trillion in 2026).