What is latest form for declaring goods and services eligible for VAT reduction in 2024 in Vietnam?

What is latest form for declaring goods and services eligible for VAT reduction in 2024 in Vietnam?

In Appendix 4 issued with Decree 94/2023/ND-CP, there is a regulation on the latest declaration form for goods and services eligible for VAT reduction in 2024.

See details of the latest declaration form for goods and services eligible for VAT reduction in 2024 issued with Decree 94/2023/ND-CP.

When will the 2024 VAT reduction policy be applied?

Clause 1, Article 2 of Decree 94/2023/ND-CP stipulates value added tax reduction as follows:

Enforcement effectiveness and implementation organization

1. This Decree takes effect from January 1, 2024 to June 30, 2024.

2. Ministries according to their functions and tasks and the People's Committees of provinces and centrally-run cities direct relevant agencies to deploy propaganda, guidance, inspection and supervision so that consumers understand and receive benefit from the reduction of value-added tax specified in Article 1 of this Decree, which focuses on solutions to stabilize supply and demand of goods and services subject to value-added tax reduction to maintain stability of market price level (price without value added tax) from January 1, 2024 to June 30, 2024.

3. During the implementation process, if any problems arise, the Ministry of Finance shall guide and resolve them.

4. Ministers, Heads of ministerial-level agencies, Heads of Government agencies, Chairmen of People's Committees of provinces and centrally-run cities and relevant businesses, organizations and individuals are responsible responsible for implementing this Decree.

Thus, the VAT reduction policy in 2024 will be applied until June 30, 2024 in Vietnam.

What is latest form for declaring goods and services eligible for VAT reduction in 2024 in Vietnam? (Image from the Internet)

What are procedures for reducing value added tax in 2024 in Vietnam?

Clause 3, Article 1 of Decree 94/2023/ND-CP stipulates value added tax reduction as follows:

Reduce value added tax

...

3. Implementation order and procedures

a) For business establishments specified in Point a, Clause 2 of this Article, when making value-added invoices providing goods and services subject to value-added tax reduction, at the value added tax tax rate line writes "8%"; value added tax amount; total amount the buyer must pay. Based on the value-added invoice, business establishments selling goods and services declare output value-added tax, business establishments purchasing goods and services declare input value-added tax deduction according to the reduced tax amount recorded on the value-added invoice.

b) For business establishments specified in Point b, Clause 2 of this Article, when preparing sales invoices for providing goods and services subject to value added tax reduction, in the "Amount" column, write in full. Before reducing the amount of goods and services, in the line "Plus the amount of goods and services" write down the amount that has been reduced by 20% as a percentage of revenue, and also note: "reduced... (amount) corresponding to 20% of the percentage to calculate value added tax according to Resolution No. 110/2023/QH15".

4. In case a business establishment as prescribed in Point a, Clause 2 of this Article, when selling goods or providing services, applies different tax rates, the value-added invoice must clearly state the tax rate of each item and service as prescribed in Clause 3 of this Article.

In case a business establishment as prescribed in Point b, Clause 2 of this Article sells goods or provides services, the sales invoice must clearly state the reduced amount as prescribed in Clause 3 of this Article.

...

Thus, the order and procedures for reducing value-added tax in Vietnam are prescribed as follows:

- For business establishments specified in Point a, Clause 2, Article 1 of Decree 94/2023/ND-CP.

Step 1: When making a value-added invoice for providing goods and services subject to value-added tax reduction, write "8%" in the value-added tax rate line, value-added tax amount; total amount the buyer must pay.

Step 2: Based on the value-added invoice, business establishments selling goods and services declare output value-added tax, business establishments purchasing goods and services declare value-added tax deduction. Increase input according to the reduced tax amount recorded on the value-added invoice.

- For business establishments specified in Point b, Clause 2, Article 1 of Decree 94/2023/ND-CP

Step 1: When preparing a sales invoice for providing goods and services subject to value-added tax reduction, in the "Amount" column, write the full amount of the goods and services before reduction.

Step 2: In the line "Add money for goods and services" write down the number that has reduced the percentage of revenue by 20%, and also note: "reduced... (amount) corresponding to 20% of the percentage of revenue." percentage to calculate value added tax according to Resolution 110/2023/QH15.

Note: Decree 94/2023/ND-CP is effective from January 1, 2024 to June 30, 2024.

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