Guidelines on the identification of HS codes for 2% VAT reduction

Particularly, in case a commodity specified in Appendix I and Appendix III (attached with Decree No. 15/2022/ND-CP) has a HS code that:  

- Indicates a chapter (2 digits), without a specific heading (4 digits) or sub-heading (6 digits) or item (8 digits), all the 8-digit items in that chapter shall apply 10% VAT;

- Indicates a chapter (2 digits), with a specific heading (4 digits) and without a specific sub-heading (6 digits) or item (8 digits), all the 8-digit items in that heading shall apply 10% VAT;

- Indicates a chapter (2 digits), with a specific sub-heading (6 digits) and without a specific item (8 digits), all the 8-digit items in that sub-heading shall apply 10% VAT;

- Indicates a chapter (2 digits), with a specific HS code (8 digits), only that 8-digit item shall apply 10% VAT;

Example: If a line of commodity has "Plastic dạng nguyên sinh” (Plastic in Primary Form) as the commodity name (column 8), HS code (column 10) is 39, with a specific HS code in the 4-digit headings, from 39.01 to 39.13, and a 3914.00.00 code, all the 8-digit items in headings from 39.01 to 39.13 and the 3914.00.00 code shall apply 10% VAT, the remaining 4-digit headings of Chapter 39 shall apply 8% VAT.

Official Dispatch No. 521/TCHQ-TXNK is promulgated on February, 18, 2022.

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