On June 30, 2023, the Government of Vietnam promulgated Decree No. 44/2023/ND-CP on VAT reduction according to Resolution No. 101/2023/QH15, which comes into force on July 01, 2023.
According to the Decree, the General Department of Vietnam Customs requests the Customs Departments, affiliated Sub-Departments and customs declarants in their provinces/cities to manage and instruct the implementation of contents concerning VAT reduction according to Decree No. 44/2023/ND-CP in the customs sector. To be specific:
- Regarding reduction of VAT:
+ The reduction of VAT by 2% shall apply to goods that are applying 10% VAT (which will be reduced to 8%), except for the following goods categories: Telecommunications, information technology, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products and excisable goods according to Clause 1, Article 1 of Decree 44/2023/ND-CP.
+ VAT reduction does not apply to the articles specified in Appendices I, II and III enclosed with Decree No. 44/2023/ND-CP.
- Regarding the list of goods not eligible for VAT reduction:
+ The HS codes specified in column (10) Appendix I and column (10) Part A and column (4) Part B Appendix III are for reference only. HS codes of goods imported in reality shall be determined in accordance with regulations on goods classification in the Customs Law and legislative documents and instructions on implementation of the Customs Law.
+ HS codes of goods imported in reality shall be declared on the lines with the asterisk (*) in column (10) Appendix I, column (10) Part A and column (4) Part B Appendix III.
For more details, see Official Dispatch No. 3431/TCHQ-TXNK dated June 30, 2023.
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