In the draft Decree detailing the implementation of tax exemption and reduction policies according to Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Socio-economic recovery and development program Association, the Ministry of Finance has implemented specific guidance on the policy of reducing value-added tax.
Some groups of goods and services will not be eligible for VAT reduction
According to the draft, the value-added tax (VAT) will be reduced by 2%, applied to groups of goods and services currently applying the tax rate of 10% (to 8%) from the date of this Decree. Valid until December 31, 2022, except for the following groups of goods and services:
Telecommunications, financial activities, banking, securities, insurance, real estate, metals and prefabricated products, mining products (excluding coal), coke, refined petroleum manufactures, chemicals and chemical products; goods and services subject to excise tax; information technology in accordance with the law on information technology.
Details of goods and services that are not eligible for VAT reduction as mentioned above are specified in Appendix 1 and Appendix 2 to the Decree.
In case the above goods and services are not subject to VAT or subject to 5% VAT according to the provisions of the Law on VAT, the provisions of the law shall apply.
Regarding the deduction of VAT, the draft decree stipulates that business establishments that calculate VAT by the deduction method may apply the VAT rate of 8% for the goods and services specified above.
Business establishments that calculate VAT according to the percentage method on turnover are entitled to a reduction of 20% of the percentage rate for calculating VAT on goods and services specified above.
Specify the order of procedures
In the draft, the Ministry of Finance also stipulates specific implementation orders and procedures. Accordingly, for business establishments mentioned above, when making VAT invoices providing goods and services subject to VAT reduction, in the line of the VAT rate, write "the prescribed tax rate of 8%". ; VAT payment; Total amount to be paid by the buyer. Based on VAT invoices, business establishments producing and trading in goods and services shall declare output VAT; reduced tax stated on the VAT invoice.
For business establishments specified at Point b, Clause 2 of this Article, when making sales invoices for the provision of goods and services eligible for VAT reduction, in the column “into cash” write the full amount of goods or services. service before the reduction, in the line "Column of goods and services" write the number that has reduced 20% of the rate to calculate VAT according to Resolution 43.
In case business households and individuals pay tax according to the presumptive method, the tax authority is entitled to determine the VAT rate according to the principle of 20% reduction in percentage rate for calculating VAT on goods and services. specified in Clause 1 when making the set of the flat tax.
In case the organization declares or pays on its behalf, the VAT rate shall be determined on the tax declaration, ensuring the principle of reducing the percentage rate by 20% for tax calculation. At the same time, make a table to determine the amount of VAT to be reduced according to the form promulgated together with the Decree.
In case the business establishment trades in many goods and services, when making invoices, the business establishment shall issue a separate invoice for the goods eligible for VAT 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, the seller and the buyer must make a record or there is a written agreement stating the error and the seller shall issue an invoice to correct the error and deliver the adjusted invoice to the buyer. Based on the adjustment invoice, the seller declares adjustment of output tax, and the buyer declares adjustment of input tax (if any).
In case business establishments trading in goods and services eligible for value-added tax reduction have issued invoices printed on order in the form of pre-printed pre-printed face value which has not been used up and has the need to continue using it, the business establishment shall stamp it at the reduced price of 2% of the value-added tax rate or the price has been reduced by 20% at the percentage level next to the pre-printed discount criteria to continue using.
The Ministry of Finance expects the VAT reduction policy to reduce state budget revenue in 2022 by about VND 49.4 trillion.
Collected from source