If I issue a service invoice for 2023 in 2022, will the 8% value-added tax be applied in Vietnam?

If I issue a service invoice for 2023 in 2022, will the 8% value-added tax be applied in Vietnam?

In Article 3 of Decree 15/2022/ND-CP, there are provisions as follows:

1. This Decree takes effect from February 1, 2022.

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.

2. Ministries, within the ambit of their assigned functions and tasks, and Provincial People’s Committees shall direct relevant agencies to disseminate, instruct and inspect the implementation of regulations on VAT reduction in Article 1 of this Decree, especially solutions for stabilizing supply and demand for goods and services eligible for VAT reduction which aim to ensure that market prices (prices before VAT) from February 01, 2022 to December 31, 2022 inclusively will be more stable than those before February 01, 2022.

3. Difficulties that arise during the implementation of this Decree should be reported to the Ministry of Finance for consideration.

4. Ministers, heads of ministerial-level agencies, heads of Governmental agencies, Chairpersons of Provincial People’s Committees and relevant enterprises, organizations and individuals shall be implement this Decree.

According to this Article, if in 2022 you issue a service invoice for 2023, in this case your goods and services will not be subject to the 8% value added tax because the service invoice is issued in 2022 to the date December 31 this year will expire in Vietnam.

If I issue a service invoice for 2023 in 2022, will the 8% value-added tax be applied in Vietnam? (Image from the Internet)

Is it necessary to issue a value-added invoice when selling a fruit garden to the buyer in Vietnam?

According to Clause 1, Article 8, Decree 123/2020/ND-CP has the following regulations:

Invoices prescribed herein are classified into the following types:

1. Value-added tax (VAT) invoice is an invoice which may be used by organizations making VAT declaration by employing the credit-invoice method for the following activities:

a) Domestic sale of goods or provision of services;

b) Provision of international transport services;

c) Export of goods to free trade zones and other cases considered as export of goods;

d) Export of goods or provision of services in a foreign market.

With this regulation in Vietnam, if your business declares value-added tax using the deduction method when selling a fruit garden, it must issue a value-added invoice to the buyer.

Which groups of goods are not eligible for value added tax reduction at the 10% tax rate in Vietnam?

Pursuant to Clause 1, Article 1 of Decree 15/2022/ND-CP has the following regulations:

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.

Thus, the above groups of goods will not be eligible for the 10% value added tax reduction in Vietnam.

Best regards!