On January 28, 2022, the Government issued Decree 15/2022/ND-CP stipulating the tax exemption and reduction policy according to Resolution 43/2022/QH15 , including guidance on reducing VAT from 10% to 8 % from 01/02/2022.
Article table of contents
Decree 15/2022/ND-CP guiding the reduction of VAT to 8% from February 1, 2022
1. Groups of goods and services eligible for VAT reduction
In Clause 1, Article 1 of Decree 15/2022/ND-CP , it is clearly stated: Value-added tax reduction for groups of goods and services currently applied at the tax rate of 10%, except for the following groups of goods and services:
- Telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products. Details are in Appendix I issued together with Decree 15/2022/ND-CP .
- Products and services subject to excise tax. Details are in Appendix II issued together with Decree 15/2022/ND-CP .
- Information technology according to the law on information technology. Details are in Appendix III issued together with Decree 15/2022/ND-CP .
- The reduction of value-added tax for each type of goods and services according to the above provisions shall be applied uniformly at the stages of import, production, processing, business and trade.
For coal sold for sale (including the case of coal mined and then screened, classified according to a closed process, sold) subject to value-added tax reduction. Coal products in Appendix I promulgated together with Decree 15/2022/ND-CP are not eligible for value added tax reduction at stages other than mining and sale.
In case goods and services mentioned in Appendices I, II and III issued together with Decree 15/2022 are not subject to value-added tax or subject to 5% value-added tax as prescribed. of the Law on Value Added Tax shall comply with the provisions of the Law on Value Added Tax and shall not be entitled to a reduction of value added tax .
2. VAT reduction
Pursuant to Clause 2, Article 1 of Decree 15/2022/ND-CP , the value-added tax reduction is prescribed as follows:
(1) Business establishments that calculate value-added tax by the deduction method may apply the value-added tax rate of 8% for goods and services specified above.
(2) Business establishments (including business households and business individuals) that calculate value-added tax according to the percentage method on revenue are entitled to a reduction of 20% of the percentage rate to calculate value-added tax when issuing invoices for goods and services eligible for value added tax reduction as prescribed above.
3. Order and procedures for VAT reduction
- For business establishments specified in (1), when making value-added invoices providing goods and services subject to value-added tax reduction, at the value-added tax rate line, write " 8%"; value added tax; the total amount to be paid by the buyer.
Based on value-added invoices, business establishments selling goods and services shall declare output value-added tax, and business establishments purchasing goods and services shall declare and deduct input value-added tax. according to the reduced tax amount written on the value-added invoice.
- For business establishments specified in (2), when making sales invoices for the provision of goods and services subject to value-added tax reduction, in the column "Amount of money" write the full amount of goods, Before the reduction in services, in the line “Adding money for goods and services” write the number that has reduced 20% of the percentage of revenue, and at the same time note: “reduced… (amount) respectively 20 % percentage rate for calculating value added tax according to Resolution 43/2022/QH15”.
4. Some notes when implementing VAT reduction
- Business establishments must make separate invoices for goods and services eligible for value-added tax reduction. In case a business establishment does not issue separate invoices for goods and services eligible for value-added tax reduction, they are not entitled to value-added tax reduction .
- In case the business establishment has issued an invoice and declared according to the tax rate or percentage to calculate the value added tax that has not been reduced according to the provisions of Decree 15/2022/ND-CP , the seller and the buyer must make a record or have a written agreement specifying the error, and at the same time, the seller shall issue an invoice to correct the error and deliver the adjusted invoice to the buyer. Based on the adjusted invoice, the seller declares and adjusts the output tax, and the buyer declares the adjustment of input tax (if any).
- In case goods and service business establishments eligible for value-added tax reduction have issued invoices printed on order in the form of tickets with pre-printed face value that have not been used up (if any) and have a need If they continue to use them, business establishments shall stamp them according to the price that has been reduced by 2% of the value-added tax rate or the price that has been reduced by 20% at the percentage rate next to the pre-printed price criterion for continued use.
- Business establishments shall declare value-added tax-reduced goods and services according to Form No. 01 in Appendix IV issued with Decree 15/2022/ND-CP together with the value-added tax declaration. increase.
Decree 15/2022/ND-CP takes effect from February 1, 2022. The above regulations apply from February 1, 2022 to the end of December 31, 2022.
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