Proposal to Extend 2% VAT Reduction Until June 2025
In a continued effort to stimulate consumer demand and support businesses amidst ongoing economic uncertainties, the National Assembly is considering the Draft Resolution on extending the 2% VAT reduction until the end of June 2025 (“Draft“).
If approved, the 8% VAT rate will remain applicable to the group of goods and services currently benefiting from this rate in 2024. The VAT reduction will still not apply to telecommunications, information technology, financial services, banking, securities, insurance, real estate, metals, fabricated metal products, mining products, refined petroleum, chemical products, and goods subject to special consumption tax.
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