Which legislative documents are involved in the reduction of VAT in Vietnam from 2021 until January 01, 2025?

Which legislative documents are involved in the reduction of VAT in Vietnam from 2021 until January 01, 2025?

- Legislative documents regarding the reduction of VAT in 2021

+ Decree 92/2021/ND-CP providing guidelines on Resolution 406/NQ-UBTVQH15 on solutions to support businesses and individuals impacted by the Covid-19 pandemic (Document expired).

++ Reduction of 30% in corporate income tax payable for enterprises specified in Clause 1, Article 1 of Decree 92/2021/ND-CP with revenue in the tax calculation period in 2021 not exceeding 200 billion VND, and revenue in 2021 decreased compared to 2019.

- Legislative documents regarding the reduction of VAT in 2022

+ Resolution 43/2022/QH15 about fiscal and monetary policies to support the economic-social recovery and development program.

++ VAT reduction from 10% to 8% in 2022 for certain groups of goods and services currently applying a VAT rate of 10%.

+ Decree 15/2022/ND-CP stipulating the tax exemption and reduction policy under Resolution 43/2022/QH15.

++ Detailed guidance on reducing VAT from 10% to 8%;

++ Issuance of a list of goods and services not eligible for VAT reduction.

+ Official Dispatch 370/TCHQ-TXNK from the General Department of Customs on implementing Decree 15/2022/ND-CP.

++ Guidance for customs declarants to declare VAT of 8% on the VNACCS/VCIS system.

+ Official Telegram 01/CD-TCT from the General Department of Taxation on implementing Decree detailing the implementation of tax exemption and reduction policies under Resolution 43/2022/QH15.

++ The General Department of Taxation requires the implementation of tax exemption and reduction policies under Resolution 43/2022/NQ-QH15.

+ Official Telegram 02/CD-TCT from the General Department of Taxation on promoting the implementation of VAT reduction according to the provisions of Resolution 43/2022/QH15 and Decree 15/2022/ND-CP.

++ Enhance propaganda and guide individuals and enterprises to issue VAT invoices applying an 8% VAT rate as per regulations.

+ Official Dispatch 521/TCHQ-TXNK from the General Department of Customs on implementing Decree 15/2022/ND-CP.

++ Guidance on VAT declaration for imported goods based on the actual importation, cross-referencing goods subject to VAT and applicable VAT rates as per regulations. VAT reduction policy for imported goods.

+ Official Dispatch 642/TCHQ-TXNK from the General Department of Customs regarding VAT rate declaration, determination of names, and application of HS codes for imported goods not eligible for VAT reduction under Decree 15/2022/ND-CP.

++ Guidance on the determination of names and application of HS codes for goods not eligible for VAT reduction.

+ On March 23, 2022, the Ministry of Finance issued Official Dispatch 2688/BTC-TCT regarding value-added tax (VAT) under Decree 15/2022/ND-CP.

++ Guidance on groups of goods and services not eligible for VAT reduction and invoice issuance timing.

- Legislative documents regarding the reduction of VAT in 2023

+ Decree 44/2023/ND-CP of the Government of Vietnam stipulating policies on VAT reduction according to Resolution 101/2023/QH15 on June 24, 2023, of the National Assembly.

++ Continue to reduce VAT from 10% to 8% until the end of 2023.

+ Resolution 101/2023/QH15 regarding the 5th Session, 15th National Assembly.

++ Implement a 2% reduction in the VAT rate from July 01, 2023, to December 31, 2023.

- Legislative documents regarding the reduction of VAT in 2024

+ Decree 94/2023/ND-CP stipulating VAT reduction policies according to Resolution 110/2023/QH15 on November 29, 2023, of the National Assembly.

++ VAT reduction from January 01, 2024, to June 30, 2024.

+ Decree 72/2024/ND-CP regarding VAT reduction policies according to Resolution 142/2024/QH15.

++ VAT reduction from July 01, 2024, to January 01, 2025.

Who are VAT payers in Vietnam?

According to Article 4 of the Value-Added Tax Law 2008, specific regulations are as follows:

VAT payers include organizations and individuals producing, trading goods, and services subject to VAT (hereinafter referred to as business establishments), and organizations and individuals importing goods subject to VAT (hereinafter referred to as importers).

Which legislative documents are involved in the reduction of VAT in Vietnam from 2021 until January 01, 2025? (Image from the Internet)

What is the credit method of tax calculation in Vietnam?

According to Clause 1, Article 10 of the Value-Added Tax Law 2008 amended by Clause 4, Article 1 of the Amended Value-Added Tax Law 2013, specific provisions for the credit method of tax calculation are as follows:

- The VAT payable by the credit method is equal to the output VAT minus the deductible input VAT;

- Output VAT equals the total VAT of goods and services sold as indicated on the VAT invoice.

- The VAT of goods and services sold as indicated on the VAT invoice is calculated by the taxable price of the goods and services sold multiplied by the VAT rate of those goods and services.

- In case the payment price recorded includes VAT, the output VAT is determined by the payment price minus the VAT calculation price determined as prescribed in point k, clause 1, Article 7;

- The deductible input VAT equals the total VAT recorded on the VAT invoices for purchased goods and services, the tax payment vouchers for imported goods, and meeting the conditions stipulated in Article 12.