Vietnam: Instructions for making invoices with 2% VAT reduction of 2022 in 2023

Hello, Lawnet would like to answer as follows:

On May 29, 2023, the General Department of Taxation has Official Dispatch 2121/TCT-CS sent to the Department of Taxations of provinces and centrally-run cities and the Large Enterprise Department of Taxation on making invoices to implement Decree 15/2022/ND-CP.

Official dispatch 2121/TCT-CS: Tải về

The General Department of Taxation received some problems from the Department of Taxation related to invoicing when implementing Decree 15/2022/ND-CP. Regarding these matters, the General Department of Taxation has the following opinions:

1. Regarding the time of making specific invoices in Vietnam

On March 23, 2022, the Ministry of Finance issued Official Dispatch 2688/BTC-TCT guiding the Department of Taxations of provinces and cities on VAT in Decree 15/2022/ND-CP,
including instructions on when to invoice.

On September 22, 2022, the General Department of Taxation issued Official Dispatch 3522/TCT-CS, replying to the Ho Chi Minh City Department of Taxation and sending it to the Department of Taxations of provinces and cities, including instructions on VAT reduction for specific invoice times.

It is recommended that the Department of Taxations of provinces and centrally run cities study the content and guide their units to implement it according to the guiding dispatch of the Ministry of Finance and the General Department of Taxation mentioned above.

Thus, following Official Dispatch 2688/BTC-TCT and Official Dispatch 2688/BTC-TCT, invoices issued from February 1, 2022, to December 31, 2022, record a tax rate of 8%.

2. Invoicing in some cases in Vietnam

In case of re-invoicing in 2023 due to errors in 2022:

In cases where goods and services are subject to a 2% VAT reduction in 2022 according to Decree 15/2022/ND-CP, after December 31, 2022, errors are discovered and must be invoiced for adjustment or replacement. position:

- If it does not affect the goods price and VAT payable or adjust the taxable price, the adjusted or replaced invoice will apply the 8% VAT rate;

- If an error in the quantity of goods leads to an error in the amount of goods and VAT, the adjusted or replacement invoice will apply the VAT rate prescribed at the time of making the adjusted or replacement invoice (10% ).

In case of a re-invoice due to the buyer returning goods:

In case the goods were purchased before January 1, 2023, with a tax rate of 8%, and after December 31, 2022, the buyer returns the goods due to incorrect specifications and quality, the seller will issue a return invoice for the goods. To reduce or replace the invoice with the 8% VAT rate, the seller and buyer must have an agreement clearly stating the returned goods.

In the case of making an invoice recording a trade discount for goods sold in 2022:

In the event that a business establishment applies a commercial discount to customers
and for commercial discounts on goods eligible for VAT reduction with a tax rate of 8% sold in 2022, but from January 1, 2023, invoices showing the content of commercial discounts are issued:

- In the event that the discount amount is made on the last purchase or in the next period after December 31, 2022, the discount amount of the sold goods is calculated and adjusted according to the content of the taxable price and the implemented tax rate. according to current law at the time of invoice (10%).

- If the discount amount is established at the end of the discount program (period) after December 31, 2022, the seller will issue an adjustment invoice and apply the 8% VAT rate at the time of sale.

In case of sales in 2022 but invoiced in 2023:

- In case of revenue arising from February 1, 2022, to December 31, 2022, of a business establishment selling goods or providing services (subject to VAT reduction according to Decree 15/2022/ND-CP) and construction and installation activities have a time of acceptance and handover of the project, project items, and completed construction and installation volume, regardless of whether money has been collected or not, but after December 31, 2022, to invoice revenue, then:

+ In the case of making an invoice at the wrong time, the 8% VAT rate is applied;

+ Handled administrative violations for making invoices at the wrong time.

Key word: tax | invoice | reduction | in Vietnam | Vietnam |

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