- The goal of the policy is to reduce VAT to 8%
- Determination of goods and services subject to VAT reduction
- Instructions for making VAT invoices when reducing VAT from 10% to 8%
- Instructions for declaring when reducing VAT from 10% to 8%
- Guidance on special cases arising in the application of VAT reduction
2% reduction of value-added tax rate from February 01 to the end of 02, applicable to groups of goods and services currently subject to the value-added tax rate of 2022% (remaining 10%), except certain groups of goods and services. Details as shown below:
The goal of the policy is to reduce VAT to 8% #
Objectives of the state's policy to reduce VAT from 10% to 8% include:
- Restore and rapidly develop production and business activities, promote growth drivers, prioritize a number of important industries and fields, and strive to achieve the goal of the 2021-2025 period: average GDP growth 6,5 - 7%/year.
- Reducing VAT to 5% helps to reduce costs, support cash flow, ensure initiative, and create favorable conditions for businesses, economic organizations and people.
- The policy of reducing VAT from 10% to 8% helps to ensure social security and people's lives.
Determination of goods and services subject to VAT reduction #
2% reduction of value added tax rate in 2022, applicable to groups of goods and services are applying the value-added tax rate of 10% (remaining 8%).
Except for some of the following groups of goods, the 2% discount is not applicable:
- Telecommunication
- Information Technology
- Financial activities
- Bank
- Stock
- Insurrance
- Real estate business
- Metal production and manufacture of prefabricated metal products
- Mining industry (excluding coal mining)
- Coke production
- Refined petroleum
- Manufacture of chemicals and chemical products
- Goods and services subject to excise tax.
Look up the list of goods and services eligible for VAT reduction from 10% to 8% in Decree 15 below:
Decree No. 15/2022/ND-CP stipulating tax exemption and reduction under Resolution 43/2022/QH15 #
Issuance date: January 28, 01 Effective date: February 2022, 01 Document type: Decree Status: Still in force
Instructions for making VAT invoices when reducing VAT from 10% to 8% #
When making VAT invoices due to the reduction of VAT from 10% to 8% according to Decree 15/2022/ND-CP, enterprises should note the following contents:
For business establishments that calculate VAT by the credit method:
When making a VAT invoice for the provision of goods and services eligible for VAT reduction, write "8%" at the VAT rate line; VAT amount; the total amount to be paid by the buyer.
Based on VAT invoices, business establishments selling goods and services shall declare output VAT, and business establishments purchasing goods and services shall declare and deduct input VAT according to the reduced tax amount stated on the invoice. VAT.
For business establishments (including business households, business individuals) calculating VAT according to the percentage method on turnover, when making sales invoices for providing goods and services subject to tax reduction VAT:
+ In the column "Total money": write in full the money for goods and services before reducing;
+ In the line "Adding money for goods and services" write the number that has decreased by 20% of the percentage of revenue;
+ At the same time, note: "reduced... (amount) corresponds to 20% of the percentage to calculate VAT according to Resolution 43/2022/QH15".
Note: Business establishments must make separate invoices for goods and services eligible for VAT reduction. In case a business establishment does not issue a separate invoice for goods and services eligible for VAT reduction, it is not entitled to VAT reduction.
In case the business establishment has issued an invoice and declared at the tax rate or percentage for calculating VAT that has not been reduced as prescribed in Decree 15/2022, the seller and the buyer must make a record or there is a written agreement specifying the error, at the same time the seller makes an invoice to correct the error and delivers 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 a business establishment of goods and services eligible for VAT reduction has issued an ordered invoice printed in the form of a pre-printed ticket with the unused face value (if any) and has a need to continue using it. business establishments shall stamp according to the price reduced by 2% of the VAT rate or the price that has been reduced by 20% at the percentage rate next to the pre-printed price criterion for continued use.
Instructions for declaring when reducing VAT from 10% to 8% #
Business establishments shall declare VAT-reduced goods and services according to Form No. 01 in Appendix IV issued with Decree 15/2022 together with the VAT declaration.
The General Department of Taxation has also announced the upgrade of the VAT invoice software to meet the regulations on reducing the VAT rate in Resolution 43/2022/QH15. Notice of software upgrade 27_TB_TCT
Guidance on special cases arising in the application of VAT reduction #
On March 23, 3, the Ministry of Finance issued Official Letter 2022/BTC-TCT on value-added tax in Decree 2688/15/ND-CP of the Government.
Accordingly, the Ministry of Finance guides on the time of making invoices to apply the policy of reducing VAT from 10% to 8% as follows:
– In case a business establishment signs a service provision contract with collection of money before or during service provision, an invoice has been issued at the time of collection before February 01, 02 with the tax rate of 2022%, but the service completed in the period from February 10, 01 to the end of December 02, 2022, the amount invoiced before February 31, 12 is not eligible for VAT reduction policy; for the remaining unpaid amount, invoiced from February 2022, 01 to the end of December 02, 2022 according to the provisions of law, the VAT reduction policy will be applied.
– In case a business establishment provides goods and services subject to the tax rate of 10% in January 01, but in February 2022, the business establishment will issue an invoice for revenue from selling goods and services. born in January 02, they are in the case of making invoices at the wrong time and are not eligible for VAT reduction.
– For invoices made before February 01, 02 with the VAT rate of 2022%, after February 10, 01, there are errors that need to be adjusted in terms of money, VAT or return of goods. the adjusted invoice, the goods return invoice shall be made with the VAT rate of 02%.
– For activities of providing specific goods and services such as electricity supply, business establishments are entitled to a reduction in VAT according to regulations for invoices made from February 01, 02 to the end of December 2022, 31. 12.
Official Dispatch 2688_BTC-TCT HD dealing with some cases of 2% VAT reduction in 2022
