Warehouse and yard rental service businesses will not be eligible for value-added tax reduction under Decree 15/2022/ND-CP?
- What are the forms of value-added tax reduction according to the fiscal and monetary policies to support the current socio-economic development and recovery program?
- What is the statute of limitations for applying the reduction of value added tax under the current fiscal and monetary policies to support the current socio-economic recovery and development program?
- The latest guidance of the Hanoi Tax Department for warehouse and yard rental service providers on the reduction of value-added tax under the fiscal and monetary policies to support the program of socio-economic recovery and development festival?
What are the forms of value-added tax reduction according to the fiscal and monetary policies to support the current socio-economic development and recovery program?
Pursuant to Clauses 1 and 2, Article 1 of Decree 15/2022/ND-CP stipulates as follows:
“Article 1. Value-added tax reduction
1. Value-added tax reduction for groups of goods and services currently applying the tax rate of 10%, except for the following groups of goods and services:
a) Telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke , refined petroleum, chemical products. Details are in Appendix I issued together with this Decree.
b) Products, goods and services subject to excise tax. Details are in Appendix II issued with this Decree.
c) Information technology in accordance with the law on information technology. Details are in Appendix III issued together with this Decree.
d) 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 coal sold for sale (including the case of coal mined and then screened, classified according to a closed process, 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 stages other than mining and sale.
In case 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 the Law on Value-added tax shall comply with the provisions of the Law on Value-Added Tax and may not reduce value-added tax.
2. Value-added tax reduction
a) 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.
b) Business establishments (including business households and business individuals) that calculate value-added tax according to the percentage method on turnover are entitled to a reduction of 20% of the percentage rate to calculate value-added tax when issue invoices for goods and services eligible for value added tax reduction specified in Clause 1 of this Article.”
Accordingly, an enterprise depends on the content of its operation to determine the form of value-added tax reduction to be applied to it.
Warehouse and yard rental service businesses will not be eligible for value-added tax reduction under Decree 15/2022/ND-CP?
What is the statute of limitations for applying the reduction of value added tax under the current fiscal and monetary policies to support the current socio-economic recovery and development program?
Pursuant to Clause 1, Article 3 of Decree 15/2022/ND-CP stipulates as follows:
“Article 3. Implementation effect and organization of implementation
1. This Decree takes effect from February 1, 2022.
Article 1 of this Decree shall apply from February 1, 2022 to the end of December 31, 2022.”
Thus, the time to apply the value-added tax reduction form according to the fiscal and monetary policies to support the socio-economic recovery and development program is from February 1, 2022 to the end of December 31. year 2022.
The latest guidance of the Hanoi Tax Department for warehouse and yard rental service providers on the reduction of value-added tax under the fiscal and monetary policies to support the program of socio-economic recovery and development festival?
On June 3, 2022, the Hanoi Tax Department issued Official Letter 25532/CTHN-TTHT in 2022 guiding the value-added tax policy under Decree 15/2022/ND-CP and land rent. reduced with the following content:
“In case the company provides warehouse and yard rental services, it is the service of renting houses and non-residential land use rights on the list of goods and services specified in Appendix I issued under Decree No. 15/ The Government's 2022/ND-CP dated January 28, 2022, is not eligible for VAT reduction as prescribed in Clause 1, Article 1 of the Government's Decree No. 15/2022/ND-CP dated January 28, 2022.
In the event that in 2022, the Company receives a decision to reduce the land rent in 2021, resulting in the paid land rent in 2021 being larger than the payable amount, the Company is entitled to offset the overpaid land rent in the payment of land rent. year 2022 according to the provisions of Clause 1, Article 60 of the Law on Tax Administration No. 38/2012/QH14 dated June 13, 2019 of the National Assembly.
The content of accounting problems is not within the jurisdiction of the Hanoi Tax Department, it is recommended that the unit contact the competent authority for guidance in accordance with regulations.
Thus, warehouse and yard rental service providers will not be entitled to value-added tax reduction according to the provisions of Decree 15/2022/ND-CP.
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