The VAT rate for goods and services will be lowered from 10 per cent to 8 per cent from July 1 this year to December 31 next year. — Photo baodautu.vn

HÀ NỘI — The value added tax (VAT) rate for goods and services will be lowered from 10 per cent to 8 per cent from July 1 this year to December 31 next year.

The 15th National Assembly (NA) voted to pass a resolution on the value-added tax (VAT) reduction on Tuesday morning, part of its ongoing 9th session.

The legislature adopted the resolution on the VAT reduction with 452 deputies present voting in favour, accounting for 94.6 per cent of the total.

According to the resolution, the VAT rate will be reduced to 8 per cent from 10 per cent for goods and services specified in Clause 3, Article 9 of the Law on VAT 48/2024/QH15, except for the following groups: telecommunications, finance, banking, securities, insurance, real estate, metal products, mineral products (except coal) and goods and services subject to the special consumption tax (except petrol).

Compared to the previous resolutions, the new one expands the coverage of the VAT cut to transportation, logistics and IT products and services.

The Government reported that the VAT reduction may lead to decreases of some VNĐ39.54 trillion (US$1.58 billion) in State budget revenue during the second half of this year, and about VNĐ82.2 trillion next year.

However, the move is expected to boost production and business activities, thereby helping to drive revenue sources for the state budget. — VNS