8% Value-Added Tax Reduction According to Resolution 142 Until When?
Reduction of 8% Value Added Tax according to Resolution 142 until when?
According to Article 2 of Decree 72/2024/ND-CP, the provisions for the effectiveness and implementation are as follows:
Effectiveness and implementation
1. This Decree takes effect from July 1, 2024, to the end of December 31, 2024.
Ministries according to their functions and responsibilities, and the People’s Committees of provinces and centrally affiliated cities shall direct relevant agencies to propagate, guide, inspect, and supervise so that consumers are aware of and benefit from the reduction in value-added tax stipulated in Article 1 of this Decree. Focus on solutions to stabilize the supply and demand of goods and services subject to value-added tax reduction to keep the market price level stable (prices excluding value-added tax) from July 1, 2024, to the end of December 31, 2024.
During the implementation process, if any issues arise, the Ministry of Finance is responsible for guidance and resolution.
Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government of Vietnam, Chairpersons of the People’s Committees of provinces and centrally affiliated cities, and related enterprises, organizations, and individuals shall be responsible for implementing this Decree.
Thus, the reduction of 8% value-added tax according to Resolution 142 is applied from July 1, 2024, to the end of December 31, 2024, and it applies to business establishments that calculate value-added tax by the deduction method.
Reduction of 8% value-added tax according to Resolution 142 until when? (Image from the Internet)
Which business establishments are eligible for an 8% reduction in value-added tax from July 1, 2024, to the end of December 31, 2024?
Based on Clause 2, Article 1 of Decree 72/2024/ND-CP, the value-added tax reduction level is stipulated as follows:
Reduction of value-added tax
2. Value-added tax reduction level
a) Business establishments calculating value-added tax by the deduction method are eligible for a reduction to 8% for goods and services specified in Clause 1 of this Article.
b) Business establishments (including business households and individual businesses) calculating value-added tax as a percentage on revenue are entitled to a 20% reduction of the percentage used to calculate value-added tax when issuing invoices for goods and services subject to value-added tax reduction specified in Clause 1 of this Article.
Thus, business establishments that calculate value-added tax by the deduction method are eligible for an 8% value-added tax rate for goods and services specified in Clause 1, Article 1 of Decree 72/2024/ND-CP.
What are the procedures for implementing the value-added tax reduction for business establishments?
Based on Clause 3, Article 1 of Decree 72/2024/ND-CP, the procedures for implementing the value-added tax reduction are as follows:
- For business establishments calculating value-added tax by the deduction method eligible for an 8% value-added tax rate, the procedures are as follows:
+ When issuing value-added tax invoices for providing goods and services subject to value-added tax reduction, write "8%" in the tax rate line; value-added tax; and the total amount the buyer must pay.
+ Based on the value-added tax invoice, the business establishment selling goods and services declares the output value-added tax, and the business establishment buying goods and services declares the input value-added tax deductibles according to the reduced tax amount stated on the value-added tax invoice.
- For business establishments calculating value-added tax as a percentage on revenue eligible for a 20% reduction in the percentage, the procedures are as follows:
+ When issuing sales invoices for providing goods:
++ Services subject to value-added tax reduction, write the full amount of goods;
++ Services before the reduction, in the "Total amount" line,
++ Services, write the amount reduced by 20% of the percentage on revenue,
++ Simultaneously note: "reduced... (amount) corresponding to a 20% reduction in the percentage used to calculate value-added tax according to Resolution 142/2024/QH15."
