Previously, the tax exemption and reduction policy under Resolution 43/2022/QH15 of the National Assembly of Vietnam was specified in Clause 4, Article 1 of Decree 15/2022/ND-CP as follows:
“Separate invoices must be issued for goods and services which are eligible for VAT reduction. If business establishments fail to issue separate invoices for goods and services which are eligible for VAT reduction, they shall receive no VAT reduction."
Up to now, Decree 41/2022/ND-CP of Vietnam has completely amended this regulation. Whereby:
- In case business establishments pay VAT using the credit-invoice method, upon providing goods and services subject to different VAT rates, VAT rates applied to each of them must be clarified on the VAT invoices.
- In case business establishments pay VAT using the direct method as a percentage (%) of revenue, upon providing goods and services, deducted amount must be clarified on sales invoices as prescribed.
Thus, according to the new regulations, business establishments no longer have to issue separate invoices for goods and services eligible for value-added tax reduction under the tax exemption and reduction policy under Resolution No. 43/2022/QH15.
In case business establishments have issued invoices according to the above regulations from February 01, 2022 to June 20, 2022, they will still be eligible for VAT reduction according to the provisions of Article 2 of this Decree, will not have to revise invoices and will not incur administrative penalties for tax- and invoice-related offences.
In addition, Decree 41/2022/ND-CP also amends and supplements the Form notice on the receipt and handling results of errors in the e-invoice made according to Form No. 01/TB-HDSS replacing Form No. 01/TB-SSDT Appendix IB issued together with Decree No. 123/2020/ND-CP.
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