Official Letter No. 197/CCTKV17-QLDN1 dated April 2, 2025, issued by the Regional Tax Department XVII regarding VAT reduction is as follows

In cases where a company places an outsourcing order and the processing unit issues an invoice to the company with a VAT rate of 10%, if the goods or services involved have a product code (according to Decision No. 43/2018/QĐ-TTg dated November 1, 2018, of the Prime Minister) that falls under the group of goods and services currently subject to the 10% VAT rate and are not listed in Appendices I, II, or III issued with Decree No. 180/2024/NĐ-CP dated December 31, 2024, by the Government, then they are eligible for VAT reduction in accordance with the provisions of this Decree.

The VAT reduction for each type of goods and services specified in Clause 1, Article 1 of Decree No. 180/2024/NĐ-CP is applied uniformly across the stages of importation, production, processing, and commercial trading. The VAT reduction policy under Decree No. 180/2024/NĐ-CP is effective from January 1, 2025, until June 30, 2025.

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