Instructions for making invoices to reduce VAT to 8% according to Decree 15/2022 in Vietnam

Instructions for making invoices to reduce VAT to 8% according to Decree 15/2022 in Vietnam (Internet image)

(1) Regarding the specific time of invoicing

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

On September 22, 2022, the General Department of Taxation issued Official Dispatch 3522/TCT-CS to the Ho Chi Minh City Tax Department and sent it to the Tax Departments of the provinces and cities, including instructions on VAT reduction for the case specific billing point.

The Tax Departments of the provinces and centrally-run cities are requested to study the contents and guide the units to follow the guiding dispatches of the Ministry of Finance and the General Department of Taxation mentioned above.

(2) Regarding invoicing in certain cases

Pursuant to Clause 1, Clause 2, Clause 3, Article 1 and Clause 1, Article 3 of Decree 15/2022/ND-CP dated January 28, 2022 providing tax exemption and reduction policies according to Resolution 43/2022/QH15 dated January 11 January 1, 2022 of the National Assembly on fiscal and monetary policies to support the program of socio-economic recovery and development;

Pursuant to Article 5 of Decree 209/2013/ND-CP dated December 18, 2013 of the Government providing for the time of VAT determination;

Pursuant to Clauses 1, 3 and 5, Article 8 of Circular 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the time of VAT determination;

Pursuant to Clause 22, Article 7 of Circular 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the tax calculation prices;

Pursuant to Clause 1, Article 4 of Decree No. 123/2020/ND-CP dated October 19, 2020, providing for the principles of making, managing and using invoices and documents;

Pursuant to Article 9 of Decree 123/2020/ND-CP dated October 19, 2020 of the Government stipulating the time of making invoices.

Pursuant to Point dd, Clause 6, Article 10 of Decree 123/2020/ND-CP dated October 19, 2020 providing for the contents of invoices;

Pursuant to Clause 2, Article 19 of Decree 123/2020/ND-CP dated October 19, 2020 providing for handling invoices with errors;

Pursuant to the above regulations and instructions:

- In case goods and services are eligible for VAT reduction according to Decree 15/2022/ND-CP, after December 31, 2022, if errors are detected, an adjustment or replacement invoice must be issued without affecting the amount of goods and VAT payable or adjustment of the taxable price; adjusted or replaced invoices with the VAT rate of 8%;

Where errors in quantity of goods lead to errors in goods and VAT, the adjusted or replaced invoice shall apply the VAT rate prescribed at the time of making the adjusted or replaced invoice.

- In the event that goods were purchased before January 1, 2023, at the tax rate of 8%, and after December 31, 2022, the buyer returns the goods due to improper specifications or quality, the seller issues a goods return invoice to reduce or replace the issued invoice with the VAT rate of 8%. The seller and the buyer have an agreement to clearly state the returned goods.

- In case the business establishment applies the form of commercial discount for customers and for commercial discounts of goods eligible for VAT reduction at the rate of 8% sold in 2022 but only invoices are issued from January 1, 2023, showing the content of the trade discount:

+ In case the discount amount is made on the last purchase or the next period after December 31, 2022, the discount amount of the sold goods is calculated and adjusted at the taxable price content, and the tax rate shall comply with the current law at the time of making the invoice.

+ In case the discount amount is made at the end of the discount program (period) after December 31, 2022, the seller shall issue an adjusted invoice and apply the VAT rate of 8% at the time of sale.

- In case a business establishment sells goods or provides services (subject to VAT reduction according to Decree 15/2022/ND-CP) but after December 31, 2022, the business establishment will issue an invoice for revenue from selling goods and services arising from February 1, 2022 to December 31, 2022 and construction and installation activities with time of acceptance and handover of works, work items completed construction and installation volume, regardless of whether money has been collected or not, is determined from February 1, 2022 to the end of December 31, 2022 but after December 31, 2022, New business establishments issue invoices for revenue from construction and installation that have been tested and handed over If the invoice is issued at the wrong time, the VAT reduction will be applied according to Decree 15/2022/ND-CP, and the administrative violation will be handled for the act of making invoices at the wrong time.

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