What is the guidance on applying VAT rates for companies engaged in trading consumer goods in Vietnam?
What is the guidance on applying VAT rates for companies engaged in trading consumer goods in Vietnam?
Under Clause 1, Article 3 of Decree 15/2022/ND-CP regarding the effect and implementation:
Effect and implementation
1. This Decree comes into force from February 01, 2022.
The provisions in Article 1 of this Decree shall take effect from February 01, 2022 to December 31, 2022 inclusively.
The provisions in Article 2 of this Decree shall apply from the tax period of 2022.
According to Official Dispatch 7592/CTTPHCM-TTHT 2022, the Ho Chi Minh City Tax Department provides the following guidance:
If the Company engaged in trading consumer goods issues invoices before February 1, 2022, a VAT rate of 10% shall be applied to those consumer goods and commercial discounts. In case the consumer goods are not listed in Annex I, II, III attached to Decree 15/2022/ND-CP and invoices are issued in the period from February 1, 2022, to December 31, 2022, a VAT rate of 8% shall be applied to the discounts at the time of issuing such invoices in this period as required by Decree 15/2022/ND-CP (except the case where the Company provides goods and services with a VAT rate of 10% before February 1, 2022, but invoices for revenue before February 1, 2022, are issued in February 2022, then it is not subject to VAT reduction).
What is the guidance on applying VAT rates for companies engaged in trading consumer goods in Vietnam? (Image from the Internet)
What are the regulations on showing discount amounts on electronic invoices when the Company offers commercial discounts in Vietnam?
According to Clause 1, Article 4 of Decree 123/2020/ND-CP regarding principles of issuance, management, and use of invoices and records:
Rules for issuance, management and use of invoices and records
1. When selling goods or providing services, the seller shall issue and send invoices to buyers (including goods/services used for sales promotion, advertising or as samples, goods/services gifted, donated, exchanged or used as salary payment to employees and internal use (except goods which are internally rotated in production process), and goods rented, lent or returned). Such invoices shall have adequate contents written according to the provisions in Article 10 hereof, except e-invoices which must follow the standard format prescribed by tax authorities as prescribed in Article 12 hereof.
Simultaneously, Clause 1, Article 9 of Decree 123/2020/ND-CP stipulates the time of issuing invoices as follows:
Invoicing time
1. Invoices for sale of goods (including the sale of state-owned property, property confiscated and put into state fund, and the sale of national reserve goods) shall be issued when the right to own or use goods is transferred to buyers, whether the payment of the invoiced amount is made or not.
Additionally, under Point dd, Clause 6, Article 10 of Decree 123/2020/ND-CP regarding the contents of invoices:
Contents of invoices
...
6. The name, unit, quantity, unit price, amount payable exclusive of VAT, VAT rate, total VAT amount calculated by each VAT rate, total VAT payable and total amount payable inclusive of VAT:
...
dd) In case a discount or sales promotion is offered by the seller, the invoice must clearly specify that discount or sales promotion. The price on which VAT is imposed (VAT-exclusive price) in case of discount or sales promotion shall be determined in accordance with the Law on VAT.
Under Clause 22, Article 7 of Circular 219/2013/TT-BTC regarding the taxable prices as follows:
Taxable prices
...
If the seller offers a discount, the taxable price is the discounted price. If the discount is offered according to the sales, the discount shall be included in the invoice for the last sale or transferred to the next period. If the discount is offered after the sales promotion is over, an adjustment shall be made, specifying the numbers of the invoices that need adjusting and the adjustments to the payments and tax. According to the adjustment, the buyer and the seller shall adjust their revenues, input and output taxes.
According to Official Dispatch 7592/CTTPHCM-TTHT 2022, the Ho Chi Minh City Tax Department provides the following guidance:
Based on Decision 1450/QD-TCT 2021 dated October 7, 2021, of the General Department of Taxation promulgating regulations on the data component of electronic invoices and the method of data transmission with the tax authority.
Under the above regulations, if the Company offers commercial discounts, the discount amount shall be shown on the electronic invoice in the data format prescribed in Decision 1450/QD-TCT 2021. In the case where the discount amount is calculated at the end of the discount period (program), the Company shall comply with the stipulations in Point đ, Clause 6, Article 10 of Decree 123/2020/ND-CP and Clause 22, Article 7 of Circular 219/2013/TT-BTC.
What is the guidance on preparing invoices correcting commercial discounts in Vietnam?
Under Point e, Clause 1, Article 7 of Circular 78/2021/TT-BTC:
Handling of erroneous e-invoices and e-invoice datasheets sent to tax authorities
1. For electronic invoices:
...
e) If the value specified in the invoice is wrong, an increase ( “+” mark) or decrease ( “-“ mark) shall be specified in the invoice according to the actual value.
According to Official Dispatch 7592/CTTPHCM-TTHT 2022, the Ho Chi Minh City Tax Department provides the following guidance:
In case the Company issues invoices correcting commercial discounts, a decrease ( “-“ mark) shall be specified in the electronic invoice in compliance with Article 7 of Circular 78/2021/TT-BTC.
Detailed information may be found in Official Dispatch 7592/CTTPHCM-TTHT 2022 issued by the Ho Chi Minh City Tax Department.
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