Business establishments that calculate VAT according to the percentage method on revenue will be reduced by 20% of the rate for tax calculation?
What is the rate of reduction of VAT according to the percentage method on revenue?
According to Article 1 of Decree 15/2022/ND-CP, the VAT reduction in Vietnam rate is as follows:
Business establishments (including business households and business individuals) that calculate value-added tax by the method of percentage on turnover are entitled to a reduction of 20% of the percentage rate to calculate value-added tax when implementing issue invoices for goods and services eligible for value-added tax reduction currently applying the tax rate of 10%, except for the following groups of goods and services:
- Telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products.
- Products and services subject to excise tax.
- Information technology in accordance with the law on information technology.
Note:
- The reduction of value-added tax for each type of goods and services specified in Clause 1 of this Article shall be applied uniformly at the stages of import, production, processing, business and trade. For the sold coal products (including the case of coal mined and then screened, classified according to a closed process, then sold) subject to value-added tax reduction.
- Coal products listed in Appendix I to this Decree are not eligible for value-added tax reduction at other stages other than the mining stage.
- In case the goods and services mentioned in Appendices I, II and III issued together with this Decree are not subject to value-added tax or subject to 5% value-added tax under the provisions of this Decree. The Law on Value-Added Tax shall comply with the provisions of the Law on Value-Added Tax and shall not be entitled to a reduction in value-added tax
Business establishments that calculate VAT according to the percentage method on revenue will be reduced by 20% of the rate for tax calculation?
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What is the order and procedures for making invoices to reduce VAT according to the percentage method on revenue?
According to Article 1 of Decree 15/2022/ND-CP (amended and supplemented by Decree 41/2022/ND-CP), the order and procedures for making invoices to reduce VAT are as follows:
- For business establishments specified at Point b, Clause 2 of this Article, when making sales invoices for the provision of goods and services eligible for value-added tax reduction, in the column "Income money" write the full amount of money. Before the reduction in goods and services, in the line "Additional money for goods and services" write the number that has decreased by 20% in the percentage of revenue, and at the same time note: "reduced... (amount) equivalent to 20% of the percentage rate for calculating value added tax according to Resolution No. 43/2022/QH15
- In case business establishments (including business households and business individuals) calculate value-added tax according to the percentage method on revenue, they will be entitled to a 20% reduction of the percentage rate to calculate value-added tax. When selling goods or providing services, the sales invoice must clearly state the amount of the reduction as prescribed
- In case the business establishment has issued an invoice and declared at the tax rate or percentage to calculate the value added tax that has not been reduced as prescribed in this Decree, the seller and the buyer must make a receipt. or there is a written agreement clearly stating the error, at the same time the seller makes an invoice to correct the error and delivers the adjusted invoice to the buyer. Based on the adjusted invoice, the seller declares the adjustment of output tax, and the buyer declares the adjustment of input tax (if any).
- In case goods and service business establishments eligible for value-added tax reduction have issued invoices printed on order in the form of tickets pre-printed with their unused face value (if any) and have a need If the business continues to use it, the business establishment shall make stamps according to the price that has been reduced by 2% of the value-added tax rate or the price that has been reduced by 20% at the percentage rate next to the pre-printed price criterion for continued use.
- Business establishments specified in this Article shall declare value-added tax-reduced goods and services according to Form No. 01 in Appendix IV issued together with this Decree together with the value-added tax declaration. get a raise.
From when do business establishments receive VAT reduction in Vietnam?
According to Article 3 of Decree 15/2022/ND-CP on the effectiveness of VAT reduction in Vietnam as follows:
- This Decree takes effect from February 1, 2022.
+ Article 1 of this Decree applies from February 1, 2022 to the end of December 31, 2022.
+ Article 2 of this Decree applies to the corporate income tax period of 2022.
- Ministries according to their functions and tasks and People's Committees of provinces and centrally run cities shall direct relevant agencies to propagate, guide, inspect and supervise so that consumers can understand and be accepted. benefit from the value-added tax reduction specified in Article 1 of this Decree, focusing on solutions to stabilize the supply and demand of goods and services subject to value-added tax reduction in order to keep the face of the market stable. equal to the market price (price without value-added tax) from February 1, 2022 to the end of December 31, 2022, which is basically stable compared to the time before February 1, 2022.
- In the course of implementation, if any problems arise, the Ministry of Finance shall be assigned to guide and settle them.
- The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People's Committees of the provinces and centrally-run cities and the concerned enterprises, organizations and individuals shall take responsibility. implementation of this Decree.
Thus, business establishments that calculate VAT according to the percentage method on revenue are entitled to a 20% reduction of the percentage rate for calculating VAT when issuing invoices for goods and services eligible for VAT reduction in Vietnam. tax rate of 10%, except for the group of goods and services mentioned above in the period from February 1, 2022 to the end of December 31, 2022.
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