8% or 10% VAT Rate for Inox (Stainless Steel) Boiler and Furniture Products (Industry Code 2511)
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This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
The Phu Tho Tax Authority provides guidance to a company manufacturing stainless steel boilers and furniture (primary industry code 2511) on the applicable VAT rate under Decree No. 174/2025/ND-CP. Decree No. 174/2025/ND-CP dated 30 June 2025 reduces VAT from 10% to 8% for all goods and services currently subject to the 10% rate, except for categories listed in Appendix I and Appendix II. While "metal products" (san pham kim loai) are generally among the excluded categories, the actual classification depends on the official product industry nomenclature. Referencing Decision No. 43/2018/QD-TTg dated 01 November 2018 (Vietnam Product Industry Classification System), industry code 2511 is classified as "Cau kien kim loai" (metal structural components/fabricated metal products). This specific sub-category is NOT included in Appendix I or Appendix II of Decree No. 174/2025/ND-CP. Therefore, metal structural components (code 2511) are eligible for the reduced 8% VAT rate. The company should verify its actual products and supporting documentation to confirm eligibility for the VAT reduction as stipulated.
Question
A company specializes in manufacturing stainless steel boilers (primary industry code 2511) and also manufactures stainless steel tables and chairs. Under Decree No. 174/2025/ND-CP, industry code 2511 does not appear in Appendix I, but stainless steel is a metal product - a category generally excluded from the VAT reduction. Does the 10% or 8% VAT rate apply?
Official guidance
Based on Decree No. 174/2025/ND-CP dated 30 June 2025 of the Government, implementing VAT reduction policy pursuant to Resolution No. 204/2025/QH15 dated 17 June 2025 of the National Assembly:
Article 1 - VAT Reduction: VAT is reduced for goods and services currently subject to the 10% rate, EXCEPT for the following groups:
- a) Telecommunications, finance, banking, securities, insurance, real estate, metal products, mining products (except coal). Details in Appendix I of this Decree.
- b) Goods and services subject to special consumption tax (except gasoline). Details in Appendix II.
Referencing Decision No. 43/2018/QD-TTg dated 01 November 2018 of the Prime Minister (Vietnam Product Industry Classification System):
- Product group 25: Fabricated metal products (except machinery and equipment)
- Code 2511: Metal structural components (Cau kien kim loai)
Tax authority conclusion: Where the company's products are classified as metal structural components (code 2511) under Decision No. 43/2018/QD-TTg, and these products are NOT listed in Appendix I or Appendix II of Decree No. 174/2025/ND-CP dated 30 June 2025, then metal structural components qualify for the reduced VAT rate of 8% (not 10%).
Action points
- Confirm your product classification under Decision No. 43/2018/QD-TTg and cross-check against Appendix I and Appendix II of Decree No. 174/2025/ND-CP.
- For metal structural components (code 2511) - apply 8% VAT effective from 30 June 2025.
- Retain documentation confirming product classification for tax audit purposes.
- If any products fall under other categories listed in Appendix I or II, those products remain subject to the 10% VAT rate.