From July 1, 2025 to the end of December 31, 2026, enterprises will continue to benefit from a 2% VAT reduction policy in accordance with Resolution No. 204/2025/QH15 and Decree No. 174/2025/ND-CP.
Here are the highlights:
1, Scope of application of VAT reduction
- A 2% reduction applies (from 10% down to 8%) for goods and services subject to the 10% VAT rate, except for the following:
- Telecommunications, finance, banking, securities, insurance, real estate business, metal products, and mineral products (excluding coal);
- Goods and services subject to special consumption tax (excluding gasoline).
- Uniformly applied at all stages: importation, production, processing, and commercial trading.
(According to Article 1 of Decree 174/2025/ND-CP)
- Sectors such as telecommunications, finance – banking – insurance, real estate, securities, metals, and minerals (excluding coal) remain excluded from VAT reduction.
2, New points of Decree 174/2025/ND-CP compared to the previous VAT reduction regulations
| Goods/Services Group | Previous Regulation (Decree 180/2024) | New regulations
(Decree 174/2025) |
Practical Impact |
| Information Technology | Not eligible for reduction (listed in exclusion list – Annex III) | Now eligible for reduction (removed from exclusion list) | Subject to 8% VAT
|
| Metals and Prefabricated Metal Products | Not eligible (listed in exclusion list) | Remove the “prefabricated metal products” group from the exclusion category.
The group of “metal products” is still on the excluded list, not eligible for tax reduction.
|
Expanded scope of metal products eligible for reduction |
| Coke | Not eligible (listed in exclusion list) | Now eligible for reduction | Subject to 8% VAT |
| Refined petroleum | Not eligible (listed in exclusion list) | Now eligible for reduction | Subject to 8% VAT |
| Chemical Products | Not eligible (listed in exclusion list) | Now eligible for reduction | Subject to 8% VAT |
| Gasoline | Not eligible for tax deductions because they are on the exclusion list
(detailed in Appendix II) |
Now eligible for reduction (Annex II updated) | Subject to 8% VAT |
| Coal – post-mining stages | Only mining and integrated processes were eligible for reduction | No longer distinguishing between operational stages | Entire value chain eligible for reduction |
| Chemical Products | Not eligible (listed in exclusion list) | Now eligible for reduction | Subject to 8% VAT |
>>>> Related services: Customs Clearance
In summary, Decree No. 174/2025/ND-CP reflects a trend toward broadening the range of goods and services eligible for VAT reduction compared to previous regulations by narrowing the scope of exclusions:
- Removal of various groups such as prefabricated metals, chemical products, coke, refined petroleum products from the exclusion list (previously listed in Annex I of Decree No. 180/2024/ND-CP);
- Gasoline is no longer excluded from VAT reduction despite being subject to special consumption tax (previously listed in Annex II of Decree No. 180/2024/ND-CP);
- Information technology goods and services are no longer excluded (previously listed in Annex III of Decree No. 180/2024/ND-CP);
- Simplified regulation on coal by eliminating stage-based distinction.
3, Declaration Guidance on VNACCS/VCIS System
According to Official Dispatch No. 11079/CHQ-NVTHQ dated June 27, 2025:
- From 0:00 a.m. on July 1, 2025, when declaring the import e-customs declaration, select code: VB245 in the box “Codes for application of tax rates and other levies” to declare 8% VAT on goods and services eligible for reduction according to Resolution 204/2025/QH15.
- Do not select VB245 if:
- Goods are not subject to VAT, or are subject to a tax rate of 0%/5% according to the VAT Law 2024.
- Goods are not subject to reduction according to Resolution 204/2025/QH15.
——
Consult:
- Decree 174/2025/ND-CP stipulates the value-added tax reduction policy according to Resolution 204/2025/QH15. See here
- Official Letter 11079/CHQ-NVTHQ implementing Resolution No. 204/2025/QH15. See here