VAT reduction: How to make an invoice with a business establishment that calculates VAT according to the percentage method on revenue from June 20, 2022?
How much is the reduction for VAT invoices in Vietnam according to the % on revenue method?
According to Clause 2, Article 1 of Decree 15/2022/ND-CP as follows:
- Business establishments (including business households and business individuals) that calculate value-added tax according to the percentage method on revenue are entitled to a reduction of 20% of the percentage rate to calculate value-added tax when implementing the value-added tax. Invoices are issued for goods and services eligible for value-added tax reduction specified in Clause 1 of this Article.
VAT invoices in Vietnam reduce tax according to the percentage method on revenue when selling goods or providing services?
According to the provisions of Article 2 of Decree 41/2022/ND-CP on the issuance of VAT invoices in Vietnam as follows:
- For business establishments (including business households and business individuals) that calculate value-added tax by the method of percentage on turnover, they will receive a reduction of 20% of the percentage rate to calculate value-added tax. increase when issuing invoices for goods and services eligible for value added tax reduction when selling goods or providing services, the sales invoice must clearly state the reduced amount as prescribed.
Thus, according to regulations, VAT invoices in Vietnam for tax reduction according to the percentage method on revenue when selling goods or providing services must clearly state the amount of the reduction
If I have made a VAT invoice before, how to reduce VAT?
According to Clauses 5 and 7, Article 1 of Decree 15/2022/ND-CP, providing for VAT invoices in Vietnam as follows:
- 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.
VAT reduction: How to make an invoice with a business establishment that calculates VAT according to the percentage method on revenue from June 20, 2022?
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What is the principle of invoicing?
According to Article 4 of Decree 123/2020/ND-CP stipulating the principles of invoicing as follows:
- When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases of goods and services used for promotion, advertising, samples; goods and services). used for giving, giving, giving, exchanging, paying for employees' wages and for internal consumption (except for goods circulated internally to continue the production process); exporting goods in the form of loans, lending or returning goods) and must fully write the contents as prescribed in Article 10 of this Decree. In case of using e-invoices, it must follow the standard data format of the tax authorities as prescribed in Article 10 of this Decree. 12 of this Decree.
- When withholding personal income tax, when collecting taxes, fees and charges, tax withholding organizations, fee and charge collection organizations, and tax collection organizations must make tax withholding vouchers, tax collection receipts, and tax receipts. Fees and charges shall be delivered to persons with incomes subject to tax withholding, taxpayers, and payers of fees and charges, and the contents must be fully recorded as prescribed in Article 32 of this Decree. In case of using electronic receipts, it must follow the standard data format of the tax authorities. In case individuals authorize tax finalization, personal income tax withholding vouchers will not be issued.
For individuals who do not sign a labor contract or sign a labor contract for less than 3 months, the income paying organization or individual may choose to issue a tax withholding voucher for each tax deduction or issue a withholding voucher. for multiple deductions in a tax period. For individuals who sign labor contracts of 03 months or more, income-paying organizations and individuals shall only issue individuals with a tax withholding voucher in a tax period.
- Before using invoices and receipts, enterprises, economic organizations, other organizations, business households and individuals, tax, charge and fee collectors must register their use with tax authorities or make the announcement of issuance according to the provisions of Articles 15, 34 and Clause 1, Article 36 of this Decree. For invoices and receipts printed by the tax authority, the tax authority shall issue a notice of issuance according to Clause 3, Article 24 and Clause 2, Article 36 of this Decree.
- Business organizations, households and individuals, in the process of using them, must report on the use of purchase invoices from tax authorities, report on the use of ordered or self-printed receipts or purchase receipts from agencies. tax as prescribed in Articles 29 and 38 of this Decree.
- The registration, management and use of e-invoices and e-documents must comply with the provisions of law on electronic transactions, accounting, tax, tax administration and this Decree.
- Invoice data, vouchers when selling goods, providing services, document data when performing tax payment transactions, tax withholding and payment of taxes, fees and charges is the database to serving tax management and providing information on invoices and documents to relevant organizations and individuals.
- Goods seller or service provider is an enterprise, economic organization or other organization that is authorized to authorize a third party to issue e-invoices for the sale of goods and provision of services. Invoices authorized to be made by a third party must still show the seller's name as the authorizing party. The authorization must be determined in writing between the authorizing party and the authorized party, showing all information about the authorization invoice (the purpose of the mandate; the duration of the mandate; the method of payment of the authorization invoice). ) and must notify the tax authority when registering to use e-invoices. In case the authorized invoice is an electronic invoice without the tax authority's code, the authorizing party must transfer the e-invoice data to the tax authority through the service provider. The Ministry of Finance specifically guides this content.
- Charge and fee-collecting organizations are authorized to authorize a third party to make charge and fee receipts. Receipts authorized to a third party still bear the name of the fee-collecting organization that is the authorizing party. The authorization must be determined in writing between the authorizing party and the authorized party, showing all information about the authorization receipt (the purpose of the mandate; the duration of the mandate; the method of payment of the authorization receipt). ) and must notify the tax authority when the receipt is issued.
Decree 123/2020/ND-CP takes effect from July 1, 2022.
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