Business establishments that calculate VAT reduction in Vietnam by the credit method will be entitled to a tax reduction of 8% for goods and services with a tax rate of 10%?
How are goods and services eligible for VAT reduction in Vietnam according to the deduction method?
According to Article 1 of Decree 15/2022/ND-CP, the objects of value-added tax reduction are as follows:
Reduced value-added tax for groups of goods and services 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 value-added tax reduction for each type of goods and services specified in Clause 1 of this Article is uniformly applied at the stages of import, production, processing, business and trade. For the sold coal mined (including the case of coal mined and then screened, classified according to a closed process to be sold) which is subject to value added tax reduction. - -- Coal products listed in Appendix I to this Decree are not eligible for value-added tax reduction at stages other than mining and sale.
- 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 reduction in Vietnam by the credit method will be entitled to a tax reduction of 8% for goods and services with a tax rate of 10%? picture: internet
How is the VAT reduction in Vietnam according to the deduction method?
According to Article 1 of Decree 15/2022/ND-CP, the VAT reduction in Vietnam rate is as follows:
Business establishments that calculate value-added tax by the credit method may apply the value-added tax rate of 8% for goods and services specified in Clause 1 of this Article
What is the order and procedures for making invoices to reduce VAT by the deduction method?
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 a, Clause 2 of this Article, when making value-added invoices providing goods and services subject to value-added tax reduction, at the value-added tax rate line increase write “8%”; value added tax; total amount to be paid by the buyer. Based on value-added invoices, business establishments selling goods and services shall declare output value-added tax, and business establishments purchasing goods and services shall declare and deduct input value-added tax. according to the reduced tax amount written on the value-added invoice.
- In case business establishments calculate value-added tax by the deduction method, the value-added tax rate of 8% on goods and services when selling goods or providing services shall apply the following provisions: If the tax rates are different, the value-added invoice must clearly state the tax rate of each goods,
- 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 stamp it 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% in 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 with this Decree together with the value-added tax declaration. get a raise.
Thus, according to this regulation, business establishments that calculate VAT by the credit method may reduce VAT to 8% for goods and services with a tax rate of 10%, except for some goods and services as prescribed. .
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