Are office supplies in Vietnam eligible for a reduction in VAT from 10% to 8%?
Are office supplies in Vietnam eligible for a reduction in VAT from 10% to 8%? - Mr. Hoai (Dong Nai)
What are cases that are not required to declare, calculate and pay value-added tax in Vietnam?
Pursuant to Clause 3 Article 2 of the Decree 209/2013/NĐ-CP, following cases are not required to declare, calculate and pay value-added tax:
- Organizations and individuals receive amounts involving compensation, awards, subsidies, money for transfer of emission right and other financial revenues.
- Vietnam-based production and business organizations and individuals that purchase services from foreign organizations without permanent establishments in Vietnam or overseas individuals not residing in Vietnam including the following cases:
+ Repair of means of transport, machinery or equipment (including supplies and spare parts);
+ Advertisement and marketing;
+ Investment and trade promotion;
+ Goods sale and service provision brokerage;
+ Training;
+ Share with foreign partners charges for international post or telecommunications services provided outside Vietnam.
- The non-business organizations and individuals are not value- added tax payer upon selling assets.
- Organizations and individuals that transfer investment projects for production of and trading in goods or services subject to value-added tax to enterprises or cooperatives.
- Cultivation, husbandry and aquatic products which have not yet been processed into other products or have been just preliminarily processed and sold to enterprises or cooperatives, except for cases where agricultural products, livestock, aquaculture products, and caught fish that have not been processed into other products or have only undergone simple processing are sold by organizations or individuals who produce or catch them themselves and at the import stage.
Are office supplies in Vietnam eligible for a reduction in VAT from 10% to 8%? - Source: Internet
What is the time for determining value-added tax in Vietnam?
Pursuant to Article 5 of the Decree 209/2013/NĐ-CP stipulating the time for determining value-added tax in Vietnam as follows:
- The time for determining value-added tax on goods is the time of transferring goods ownership or use right to purchasers, regardless of whether money has been collected or not.
- The time for determining value-added tax on services is the time of completing the provision of services or the time of making service provision invoices, regardless of whether money has been collected or not.
Are office supplies in Vietnam eligible for a reduction in VAT from 10% to 8%?
Pursuant to Article 1 of the Decree 44/2023/NĐ-CP stipulating VAT reduction as follows:
VAT reduction
1. VAT on goods and services that are 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.
...
2. VAT reduction rates
a) Business establishments that pay VAT using the credit-invoice method shall pay 8% VAT on the goods and services specified in Clause 1 of this Article.
...
Pursuant to Appendix I of the Decree 209/2013/NĐ-CP stipulating list of goods and services that are not eligible for VAT reduction as follows:
|
Level 1 |
Level 2 |
Level 3 |
Level 4 |
Level 5 |
Level 6 |
Level 7 |
Product’s name |
Description |
HS codes (for goods at the import stage) |
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
(9) |
(10) |
|
B |
|
|
|
|
|
|
MINING PRODUCTS |
|
|
|
|
|
|
|
|
2599932 |
Paper trays, paper rests, pen trays, office-stamp stands and similar office or desk equipment, of base metal (other than office furniture) |
|
83.04 83.05 |
|
|
|
|
|
|
|
|
2599933 |
Fittings for loose-leaf binders or files, paper clips, staples, indexing tags and similar office articles, of base metal |
Including: insignia |
83.05 |
Therefore, businesses that account for VAT using the deduction method for the following office supplies will not be eligible for a reduction in VAT to 8%:
- Paper trays, paper rests, pen trays, office-stamp stands and similar office or desk equipment, of base metal (other than office furniture) - HS Code: 83.04; 83.05
- Fittings for loose-leaf binders or files, paper clips, staples, indexing tags and similar office articles, of base metal (Including: insignia) - HS Code: 83.05
Best regards!
