The Vietnamese government has promulgated Decree 92/2021/ND-CP guiding the implementation of a number of solutions to support businesses and people affected by the COVID-19 epidemic and guide them to make value-added invoices to receive value-added tax reduction as follows:
Article table of contents
Instructions for making VAT invoices to receive VAT reduction from November 1, 2021 (Artwork)
Enterprises and organizations shall declare goods and services eligible for value-added tax reduction according to the Appendix II for value-added tax reduction according to Vietnam's Resolution 406/NQ-UBTVQH15 in Appendix II issued in Decree 92/2021 with the Value Added Tax Declaration.
** For businesses and organizations that calculate VAT by the credit method, the VAT rate will be reduced by 30%:
- When making a value-added invoice for the provision of goods and services subject to value-added tax reduction, at the value-added tax rate line write "the prescribed tax rate (5% or 10%) x 70%”; value-added tax; the total amount to be paid by the buyer.
- Based on value-added invoices, enterprises and organizations producing and trading goods and services declare output value-added tax, enterprises and production and business organizations purchase goods and The declaration is entitled to deduct input value-added tax according to the reduced tax amount written on the value-added invoice.
** For businesses and organizations that calculate VAT according to the percentage method on revenue entitled to a 30% reduction of the percentage rate to calculate VAT:
When making a sales invoice for the provision of goods and services subject to value-added tax reduction: In the column "Total money" write the full amount of goods and services before the reduction.
- In the line "Adding money for goods and services" write the number that has reduced 30% of the rate of revenue, and also note: "reduced... (amount) corresponding to 30% of the rate for calculation value added tax under Resolution 406/NQ-UBTVQH15”.
Example 1:
Company A, which is an enterprise that calculates VAT by the deduction method, provides transportation services to Company B under the contract signed between the two parties, the taxable price is VND 20,000,000. Transportation services are subject to a 10% tax rate and are subject to a 30% reduction in VAT rate from November 1, 2021 to the end of December 31, 2021. On November 15, 2021, Company A provides transportation services for Company B, when making a VAT invoice to deliver to Company B, Company A records the following:
In the column "Goods and services" write: "Transportation services"
Selling price recorded: 20,000,000 VND
VAT rate: "10% x 70%"
VAT amount recorded: “1,400,000 VND”
Total payment price: “21,400,000 VND”.
Based on the VAT invoice, Company A declares output VAT, Company B declares and deducts VAT according to the reduced tax amount written on the invoice as VND 1,400,000.
Example 2:
Organization X, which calculates VAT according to the percentage method on revenue, provides accommodation services for customer Y in 02 days of November 2021 with a listed room price of VND 1,500,000/day. . According to the provisions of Clause 2, Article 13 of Circular No. 219/2013/TT-BTC dated December 31, 2021 of the Ministry of Finance, accommodation services apply the percentage rate for calculating VAT on revenue of 5%. During the period of VAT reduction according to Resolution No. 406/NQ-UBTVQH15 of the National Assembly Standing Committee, organization X calculates the reduced VAT amount and issues a sales invoice to deliver to customer Y as follows:
In the column “Goods and services” write: “Accommodation services”
In the column “Into money” write: “3,000,000 VND” (1,500,000 VND x 2)
Calculate the amount of VAT to be reduced: 3,000,000 x 5% x 30% = 45,000 VND
In the line "Adding money for goods and services" (which is the amount the buyer has to pay the seller) write the amount reduced by 30%, the percentage of revenue is "2,955,000 VND", and also note: "reduced by 45,000 VND, equivalent to 30% of the percentage of revenue according to Decree No. 406/NQ-UBTVQH15".
Some note:
- In case an enterprise or organization business in many goods and services, they shall make separate invoices for goods and services that are entitled to value added tax reduction when making invoices.
- In case an enterprise or organization has issued an invoice and declared at the tax rate or percentage to calculate the value added tax that has not been reduced, the seller and the buyer must make a record or reach an agreement in a document clearly stating the error, and the seller issues an invoice to correct the error and delivers the adjusted invoice to the buyer.
Based on the adjusted invoice, the seller declares the adjustment of output tax, and the buyer declares the adjustment of input tax (if any).
- In case an enterprise or organization dealing in goods and services eligible for value-added tax reduction has issued an ordered invoice printed in the form of a ticket with a pre-printed face value that has not been used up yet and has a need to continue If the company continues to use it, the enterprise or organization shall stamp it according to the price that has reduced the value-added tax rate by 30% or the price that has been reduced by 30% in the percentage rate next to the pre-printed price criterion for continued use.
Value-added tax reduction from November 1, 2021 to the end of December 31, 2021 for the following two groups of goods and services:
- Group 1: Transport services (railway transport, water transport, air transport, other road transport); Lodging; Food Service; services of travel agencies, tour operators and support services, related to the promotion and organization of tours.
- Group 2: Publishing products and services; cinematographic services, television program production, sound recording and music publishing; works of art and services for the creation, art, entertainment; services of libraries, archives, museums and other cultural activities; sports, entertainment and entertainment services.
Details of the above-mentioned goods and services eligible for tax reduction shall comply with Appendix 1 of the List of goods and services eligible for value-added tax reduction promulgated together with Decree 92/2021, in which goods and services The provisions of group 2 do not include publishing software and goods and services of production and business in the form of online.
Bao Ngoc
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