Vietnam extends the 8% VAT rate to 30 June 2025 (Decree 180/2024/NĐ-CP)

What changed in detail

The Government issued Decree No. 180/2024/NĐ-CP on 31 December 2024, signed by Deputy Prime Minister Hồ Đức Phớc. It implements National Assembly Resolution 174/2024/QH15 of 30 November 2024.

The mechanics are those of the earlier decrees:

• deduction-method businesses apply 8% instead of 10% to qualifying goods and services;
• turnover-method businesses, including household and individual businesses, reduce their VAT percentage on turnover by 20%.

The excluded scope is unchanged: Appendix I (telecoms, financial, banking, securities and insurance services, real estate, metals, mining products (coal mining excepted), coke, refined petroleum and chemical products), Appendix II (goods and services subject to special consumption tax) and Appendix III (information technology). Invoices show the 8% rate, or note the reduced amount “theo Nghị quyết số 174/2024/QH15” for turnover-method sellers, and reduced supplies are declared on Form 01 of Appendix IV.

Under Article 2(1) the decree applied from 1 January 2025 to 30 June 2025.

What it means

This reduction is spent: it ended on 30 June 2025 by its own terms. It followed Decree 72/2024/NĐ-CP, which had expired on 31 December 2024, rather than amending it.

It was the last half-year cut under the 2008 VAT Law. From 1 July 2025 the new VAT Law 48/2024/QH15 took effect, and the 8% rate continued under Resolution 204/2025/QH15, which runs to 31 December 2026 with a scope defined by reference to Article 9(3) of the new law. For first-half 2025 periods, this decree and its appendices are still the test of whether a supply qualified.