Customs implements VAT reduction policy from July 1st

VCN - To implement the contents relating to customs field, General Department of Vietnam Customs requested local customs departments to reduce VAT for group of commodities as stipulated at Decree 72/2024/NĐ-CP.
Reducing 2% VAT will help stimulate consumer demand and remove difficulties for businesses and the economy. Photo: H.Anh
Reducing 2% VAT will help stimulate consumer demand and remove difficulties for businesses and the economy. Photo: H.Anh

On June 30, 2024, the Government issued Decree 72/2024/ND-CP stipulating the VAT reduction policy according to Resolution No. 142/2024/QH15 for the period from July 1 to December 31. /2024.

Regarding the VAT reduction policy, the General Department of Vietnam Customs has requested the customs departments of provinces and cities to implement a 2% reduction in VAT rates for groups of goods that are currently subject to a 10% VAT rate (to 8%), excluding the following groups of goods: telecommunications, information technology, metals, fabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods subject to special consumption tax, in accordance with the provisions of Clause 1, Article 1 of Decree No. 72/2024/ND-CP.

The customs departments of provinces and cities shall implement the regulations for goods that are not eligible for VAT reduction, which are specified in Appendices I, II, III attached to Decree No. 72/2024/ND-CP.

The General Department of Vietnam Customs has also issued guidance to units on how to guide businesses to declare on the VNACCS/VCIS system. Accordingly, select code VB225 in the "Tax rate/tax rate and other charges application code" information indicator box on the electronic import declaration registered from 0:00 on July 1, 2024 to declare the VAT rate of 8% for goods that are eligible for VAT reduction according to the provisions of Resolution No. 142/2024/QH15 and Decree No. 72/2024/ND-CP.

The General Department of Vietnam Customs emphasizes that code VB225 does not apply to cases of goods that are not subject to VAT, goods that are subject to VAT at a VAT rate of 0%, 5%, 10% as prescribed by the Law on VAT.

By Nụ Bùi/Thanh Thuy

Related News

HCM City Customs refunds over VND 49 billion of VAT for foreign passengers

HCM City Customs refunds over VND 49 billion of VAT for foreign passengers

VCN – In the first half of 2024, HCM City Customs Department refunded over VND 49 billion for over 10,000 foreign passengers.
Minister of Finance: continue to advise on promulgating fiscal policies to help economy recover and develop

Minister of Finance: continue to advise on promulgating fiscal policies to help economy recover and develop

VCN - According to Minister of Finance Ho Duc Phoc, although implementing policies to reduce and extend taxes and fees will impact budget revenue, the Ministry has reviewed, evaluated and continued to promulgate a number of fiscal policies to support people and businesses.
Amending and supplementing digital transformation plan of Customs sector

Amending and supplementing digital transformation plan of Customs sector

On June 27th, Director General of Vietnam Customs signed to issue Decision 1550/QĐ-TCHQ on amending and supplementing Digital Transformation plan of Customs sector until 2025 and vision toward 2030.
Continuing to evaluate impacts and controversial issues to complete VAT Bill

Continuing to evaluate impacts and controversial issues to complete VAT Bill

VCN - On the afternoon of June 24, continuing the Program of the 7th Session of the 15th National Assembly, the National Assembly discussed the project of the Law on Value Added Tax (revised). At the discussion session, Minister of Finance Ho Duc Phoc explained a number of issues of concern to delegates.

Latest News

Documents required for vehicles transporting cargo across Lang Son Border Gate from August 1

Documents required for vehicles transporting cargo across Lang Son Border Gate from August 1

VCN - VCN- Vehicles carrying import and export cargo across customs clearance routes and specialized roads in the international border gate pair of Huu Nghi (Vietnam) - Huu Nghi Quan (China) must comply with international treaties and regulations of Vietnam Law. Accordingly, the vehicles transporting import and export cargo across Lang Son border gates are required to have at least seven valid documents from August 1, 2024, Lang Son Department of Industry and Trade notified.
Does goods imported for investment incentives project subjected to tax exemption?

Does goods imported for investment incentives project subjected to tax exemption?

VCN - That is the problem of Ba Ria - Vung Tau Customs Department related to processing tax exemption documents for imported goods to serve investment incentive projects.
Border gate area planning associated with digital transformation needs to prioritize human resources, equipment, and infrastructure

Border gate area planning associated with digital transformation needs to prioritize human resources, equipment, and infrastructure

VCN - According to Lang Son Customs Department, to implement the master plan of the land border gate area associated with the goal of digital transformation, in which, to ensure successful implementation of the Customs Development Strategy until 2023, Building digital Customs, a smart Customs model, it is necessary to review and evaluate the overall system of land border gates, paying attention to investment in equipment, facilities, and human resources.
Proposal to reduce registration fees to restore growth of domestic automobile industry

Proposal to reduce registration fees to restore growth of domestic automobile industry

VCN - Facing the significant decline in auto market sales in the last months of 2023 and early 2024, the Ministry of Finance is asking for opinions from ministries, central agencies and relevant agencies on continuing to reduce registration fee to restore growth of the domestic automobile industry amid many difficulties and challenges in the economy.

More News

VAT reform promotes sustainable development of the agricultural sector

VAT reform promotes sustainable development of the agricultural sector

VCN - In the revised Draft Law on Value Added Tax (VAT), the conversion of fertilizers and specialized machinery and equipment serving agricultural production to applying 5% VAT since it belongs to the group of subjects not subject to tax according to current law, it is a content that receives attention from the business community, especially fertilizer production enterprises. According to experts and businesses, converting this item to a taxable object will have a huge impact on agricultural production.
Amend the Law on Corporate Income Tax to ensure stable revenue sources for the budget

Amend the Law on Corporate Income Tax to ensure stable revenue sources for the budget

VCN - According to the Ministry of Finance, the amendment of the Law on Corporate Income Tax (CIT) aims to overcome inadequacies and overlaps, ensure stable revenue sources for the state budget, and contribute to restructuring state budget revenues in a sustainable direction.
List of imported and exported medicine and medicinal ingredients identified commodity codes

List of imported and exported medicine and medicinal ingredients identified commodity codes

VCN – 14 lists of imported and exported medicine and medicinal ingredients for human use and cosmetics that have been identified commodity codes under Vietnam’s Imports and Exports Nomenclature, have been approved and issued by the Ministry of Health from July 26, 2024.
Hundreds of tons of imported raw cashew nuts stuck in quarantine

Hundreds of tons of imported raw cashew nuts stuck in quarantine

VCN – A company is facing problems with plant quarantine regulations when carrying out procedures to import over 384 tons of "raw cashew nuts, originating from Tanzania" from a bonded warehouse in Dong Nai.
Extend deadline for paying Special Consumption Tax on domestically produced and assembled cars

Extend deadline for paying Special Consumption Tax on domestically produced and assembled cars

VCN – The Government has issued Decree 65/2024/ND-CP dated June 17,2024 extending the deadline for paying Special Consumption Tax on domestically produced and assembled cars. The Decree takes effect from the date of signing until December 31, 2024.
Extend the deadline for paying taxes and land rent in 2024

Extend the deadline for paying taxes and land rent in 2024

VCN - The Government has just issued Decree No. 64/2024/ND-CP dated June 17, 2024 extending the deadline for paying value added tax (VAT), corporate income tax (CIT), personal income tax (PIT) and land rent in 2024. This Decree takes effect from June 17, 2024 to December 31, 2024. After the extension period according to this Decree, the deadline for paying taxes and land rent will comply with current regulations.
Tax payment deadline for domestic cars extended

Tax payment deadline for domestic cars extended

The Government has decided to extend the deadline for special consumption tax payment for domestically manufactured or assembled automobiles.
13 cases must register for tax at Tax office

13 cases must register for tax at Tax office

VCN - The Ministry of Finance is collecting comments on a draft Circular guiding tax registration to replace Circular 105/2020/TT-BTC. According to the draft, in case the National Population Database proactively transmits information to the Tax Database when issuing personal identification numbers, the Tax agency will immediately update the personal identification number into the Tax registration system to use as a tax code for individuals without requiring individuals to carry out tax registration procedures with the Tax authority.
Fixing VAT rates with fertilizers brings dual benefits to "3 houses"

Fixing VAT rates with fertilizers brings dual benefits to "3 houses"

VCN - According to representatives of various businesses, the current regulations regarding value-added tax (VAT) rates on fertilizers have created significant challenges for these businesses. The proposed amendments to the VAT Law for fertilizers, if implemented, have the potential to alleviate many of these difficulties, providing enterprises with better opportunities to capture market share and foster a more equitable market environment.
Read More

Your care

Latest Most read
Documents required for vehicles transporting cargo across Lang Son Border Gate from August 1

Documents required for vehicles transporting cargo across Lang Son Border Gate from August 1

VCN - On July 18, Lang Son Department of Industry and Trade notified the method of delivery and receipt of import and export cargo transported across customs clearance routes and specialized roads in the International Border Gate pair of Huu Nghi (Vietnam
Does goods imported for investment incentives project subjected to tax exemption?

Does goods imported for investment incentives project subjected to tax exemption?

That is the problem of Ba Ria - Vung Tau Customs Department related to processing tax exemption documents for imported goods to serve investment incentive projects.
Border gate area planning associated with digital transformation needs to prioritize human resources, equipment, and infrastructure

Border gate area planning associated with digital transformation needs to prioritize human resources, equipment, and infrastructure

VCN - According to Lang Son Customs Department, to implement the master plan of the land border gate area associated with the goal of digital transformation, in which, to ensure successful implementation of the Customs Development Strategy until 2023, Bui
Proposal to reduce registration fees to restore growth of domestic automobile industry

Proposal to reduce registration fees to restore growth of domestic automobile industry

VCN - Facing the significant decline in auto market sales in the last months of 2023 and early 2024, the Ministry of Finance is asking for opinions from ministries, central agencies and relevant agencies on continuing to reduce registration fee to restore
VAT reform promotes sustainable development of the agricultural sector

VAT reform promotes sustainable development of the agricultural sector

In the revised Draft Law on Value Added Tax (VAT), the conversion of fertilizers and specialized machinery and equipment serving agricultural production to applying 5% VAT
Mobile Version