In what time will bills of Vietnam electricity supply facilities be reduced VAT in 2022?
In 2022, which items and services are supported to reduce VAT?
According to the provisions of Clause 1, Article 1 of Decree No. 15/2022/ND-CP, the items applying the 10% tax rate are eligible for VAT reduction in the Socio-economic recovery and development program, including:
"Article 1. VAT reduction
1. VAT on goods and services currently subject to 10% VAT shall be reduced, except the following goods and services:
a) Telecommunication, financial activities, banking activities, securities, insurance, trading of real estate, metal and precast metal products, mining products (excluding coal mining), coke mining, refined oil, chemical products. Further details are provided in Appendix I enclosed herewith.
b) Goods and services subject to excise tax. Further details are provided in Appendix II enclosed herewith.
c) Information technology as prescribed in the Law on information technology. Further details are provided in Appendix III enclosed herewith.
d) Reduction of VAT for each type of goods and services specified in Clause 1 of this Article shall be applied consistently in all stages, including import, production, processing and trading. Coal mined for sale (including coal mined and then washed, sieved and classified under a closed process) shall be eligible for VAT reduction. VAT on coal products in Appendix I enclosed herewith in stages other than the stage of mining and sale shall not be reduced.
In case goods and services in Appendixes I, II and III enclosed herewith are not subject to VAT or are subject to 5% VAT in accordance with the Law on value-added tax, regulations of the Law on value-added tax shall prevail and VAT on such goods and services shall not be reduced."
In which cases are items without VAT reduction in 2022?
According to the instructions in Official Dispatch 2688/BTC-TCT dated February 23, 2022, the Ministry of Finance guides the items without VAT reduction in the 2022 socio-economic recovery and development program as follows:
"1. Regarding groups of goods and services without VAT reduction
Pursuant to Clause 1, Article 1 of Decree No. 15/2022/ND-CP on the exclusion of specific groups of goods and services without tax reduction and is detailed in Appendix II. Appendix I, II, III promulgated together with Decree No. 15/2022/ND-CP. Tax Departments guide taxpayers to compare goods and services that taxpayers produce and trade with groups of goods and services that are excluded from tax reduction in Clause 1, Article 1 of Decree No. 15/2002/ ND-CP and the List of goods and services not eligible for tax reduction in Appendix I, II, III issued together with Decree No. 15/2022/ND-CP to comply with regulations."
In what time will bills of Vietnam electricity supply facilities be reduced VAT in 2022?
According to the instructions in Section 2 of Official Dispatch 2688/BTC-TCT dated March 23, 2022, to apply VAT reduction policy for items with VAT reduction in Socio-economic Recovery and Development Program should pay attention to the time of making invoices as follows:
"2. Regarding the time of invoicing
Pursuant to the provisions of Article 5 of Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government on the time of determining VAT.
Pursuant to the guidance in Article 8 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance on the time of determining VAT.
Pursuant to the guidance at Point a, Clause 2, Article 16 of Circular No. 39/2014/TT-BTC dated March 31, 2014 of the Ministry of Finance on invoice date.
Pursuant to the provisions of Article 9 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government on the time of making invoices.
Pursuant to the above regulations and instructions:
- If a business establishment signs a service provision contract with collection of money before or during service provision, an invoice is issued at the time of collection before February 1, 2022 with the tax rate of 10%, but the service completed within the period from February 1, 2022 to the end of December 31, 2022, for the amount invoiced before February 1, 2022, it is not eligible to apply the VAT reduction policy. get a raise; for the remaining unpaid amount, invoiced from February 1, 2022 to the end of December 31, 2022 in accordance with the law, the VAT reduction policy will be applied.
- If a business establishment provides goods and services subject to the tax rate of 10% in January 2022, but it is not until February 2022 that the business establishment will issue an invoice for the revenue from the sale of goods and services. If you were born in January 2022, you will fall into the case of making invoices at the wrong time and not be eligible for VAT reduction.
- For invoices made before February 1, 2022 with VAT rate of 10%, after February 1, 2022, there are errors that need to be adjusted in terms of goods and value tax. If the goods are increased or returned, the adjusted invoice and the goods return invoice are made with the VAT rate of 10%.
- For activities of providing specific goods and services such as electricity supply, business establishments are entitled to VAT reduction as prescribed for invoices made from February 1, 2022 to the end of December 31, 2022."
Thus, for the provision of specific goods and services such as electricity, business establishments are entitled to a reduction in VAT as prescribed for invoices made from February 1, 2022 to the end of December 31, 2022.
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