The Government remove obstacles in the implementation of VAT reduction by 8%

VCN – The Government has just issued Decree 41/2022/NĐ-CP amending and supplementing a number of articles of Decree 123/2022/NĐ-CP and Decree 15/2022/NĐ-CP in order to remove obstacles in the implementation of VAT reduction by 8%.
illustration image.
illustration image.

The promulgation of Decree 41/2022/NĐ-CP is aimed to solve difficulties in making invoices for goods and services which are subject to VAT reduction of 8%.

Before that, on January 28, 2022, the Government promulgated Decree 15/2022/NĐ-CP stipulating the policy on tax exemption and reduction under Decree 43/2022/NĐ-CP of the National Assembly on fiscal and monetary policies to support the recovery program of socio-economic development.

Accordingly, regarding VAT, reducing 2% of VAT from February 1, 2022 to the end of December 31, 2022 for the group of goods and services which are applying a VAT tax rate of 10% except for a number of goods and services.

However, in the process of implementing Decree 15/2022/ND-CP, the Ministry of Finance received feedback from Tax Departments, enterprises and some press agencies reporting problems with the regulation specified in Clause 4, Article 1 of Decree 15/2022/ND-CP on making separate invoices for goods and services subject to VAT reduction.

Accordingly, the regulation stated that it is necessary to make separate invoices for goods and services subject to VAT reduction so that it will be applied the tax rate of 8%. As reflected by enterprises, it results in increasing the costs of enterprises (increasing the time and money of accounting and the cost of using invoices) because for the same customer the enterprise must make two invoices: one invoice with a tax rate of 8% and one with other tax rates (5%, 10%) instead of making one invoice with different tax rates (5%, 8%, 10%).

In order to remove obstacles in making invoices for goods and services subject to VAT reduction and to ensure compliance with the contents of the invoice, the Government issued Decree 41/2022/ND-CP amending as follows: In case a business establishment calculates VAT by the deduction method when selling goods or providing services with different tax rates, the added value invoice must clearly state the tax rate of goods and service as prescribed.

In case a business establishment calculates VAT following the percentage method on revenue when selling goods or providing services, the sales invoice must clearly state the reduced amount as prescribed.

In addition, Decree 41/2022/ND-CP also promulgates a Notice on receiving and handling of errors in making e-invoices following form No. 01/TB-HDSS to replace Form No. 01/TB-SSDT appendix IB promulgated together with Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government regulating invoices and documents.

By Hương Dịu/Thanh Thuy

Related News

VAT proposed to reduce in the first half of 2024

VAT proposed to reduce in the first half of 2024

VCN – The Ministry of Finance proposes to reduce 2% VAT for some groups of goods and services that are applied 10% VAT. The effective date is from January 1 to June 30, 2024.
Customs guides to urgently implement policy of VAT reduction

Customs guides to urgently implement policy of VAT reduction

VCN - To implement Decree 44/2023/ND-CP of the Government stipulating the policy on VAT reduction according to Resolution No. 101/2023/QH15 dated June 24, 2023 of the National Assembly, the General Department of Customs guides the local Customs Departments to implement the regulations from July 1, 2023.
Flexibly promote spending control

Flexibly promote spending control

VCN – The public spending task in the first months of 2023 is implemented in line with the estimate, meeting the requirements of socio-economic development, national defence, security, state management and payment of due debts.
Deputy Prime Minister Le Minh Khai: Solution on the global minimum tax to be submitted soon

Deputy Prime Minister Le Minh Khai: Solution on the global minimum tax to be submitted soon

VCN - According to Deputy Prime Minister Le Minh Khai, it is necessary to carefully assess the impact of the application of the global minimum tax and ensure the interests of the parties.

Latest News

No need to reduce the output of manufacturing and assembling automobile to enjoy preferential tariff

No need to reduce the output of manufacturing and assembling automobile to enjoy preferential tariff

VCN - The Ministry of Finance has responded to the suggestions of Vietnam Automobile Manudacturers’ Association (VAMA) regarding the adjustment of reducing automobile volume to apply a tax rate of 0% for imported components and spare parts used for manufacturing and assembling automobiles. According to the Ministry of Finance, based on the current situation, the request to continue reducing the volume of VAMA is not suitable.
Hundreds of tons of cinnamon essential oil are left in inventory due to export regulations

Hundreds of tons of cinnamon essential oil are left in inventory due to export regulations

VCN - Enterprises exporting cinnamon essential oil are facing difficulties due to regulations on pharmaceutical trading of the Ministry of Health, leading to hundreds of tons of essential oil being left in stock in raw material areas.
Business suspension of temporary import and re-export of Monazite ores and ore concentrates will be valid on May 13th

Business suspension of temporary import and re-export of Monazite ores and ore concentrates will be valid on May 13th

VCN - The Ministry of Trade and Industry issued Circular 05/2024/TT-BCT regulating the temporary suspension of temporary import and re-export of Monazite ores and ore concentrates business.
Improving the customs legal system to be modern, synchronous, unified and transparent

Improving the customs legal system to be modern, synchronous, unified and transparent

VCN - This is one of the contents related to the Customs field recently reported to the National Assembly by the Ministry of Finance.

More News

New points about rules of origin in AKFTA

New points about rules of origin in AKFTA

VCN - The Ministry of Trade and Industry promulgated Circular 04/2024/TT-BCT amending and supplementing some articles of Circular 20/2014/TT-BCT dated June 25, 2014; the circular took effect from May 11, 2024.
It is necessary to build a national database on cross-border trade and transport

It is necessary to build a national database on cross-border trade and transport

VCN - Build a national database on cross-border trade and transport to store and share information to facilitate cross-border trade and transport as well as improve the efficiency and effectiveness of state management.
Removing difficulties in tax exemption and refund policies for export processing enterprises

Removing difficulties in tax exemption and refund policies for export processing enterprises

VCN - The Customs agency has received many proposals from businesses about answering and guiding policies on tax exemption, import tax and VAT refund for export processing enterprises. The General Department of Customs has responded and provided instructions for each specific case.
Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

Reviewing the list of scrap that is temporarily suspended from temporary import and re-export business

VCN - Scrap is a sensitive item with many potential risks of environmental pollution, directly affecting human health and the ecosystem. Therefore, strict management measures are needed to avoid the risk that Vietnam become a scrap gathering country in the world.
New law expected to boost financial leasing

New law expected to boost financial leasing

The law, which will take effect from July 1 this year, allows financial leasing companies to establish subsidiaries to handle and exploit bad debt assets. It also states that small financial leasing deals with value under VNĐ100 million do not need to control the purpose of capital use.
5% VAT on fertilisers to create fairer market: domestic producers

5% VAT on fertilisers to create fairer market: domestic producers

The absence of VAT on fertilisers has prevented domestic producers from declaring and deducting input VAT, which leads to higher cost of domestically produced fertilisers, by an estimated 5-8 per cent, and makes them vulnerable in competition from imported fertilisers.
Why not reduce export tax on fertilizer products to 0%?

Why not reduce export tax on fertilizer products to 0%?

VCN - Clarifying a number of contents related to the draft Decree amending and supplementing a number of articles of Decree No. 26/2023/ND-CP on Preferential Export Tariffs, Import Tariffs, List of Goods and Rates Absolute tax, mixed tax, import tax outside the tariff quota regarding the export tax rate for some types of fertilizers, the Ministry of Finance has clarified the reason why it does not adjust the export tax rate for this product.
Ho Chi Minh City Customs proposed to reduce VAT

Ho Chi Minh City Customs proposed to reduce VAT

VCN - Ho Chi Minh City Customs Department proposed that the Ministry of Finance advise the Government to apply a reduction in the Value Added Tax (VAT) rate of 2% for all groups of goods and services which currently subject to the 10% VAT rate, uniform at the stages of import, production and consumption.
Limiting the "power" of major shareholders under the Law on Credit Institutions (amended)

Limiting the "power" of major shareholders under the Law on Credit Institutions (amended)

VCN - The Law on Credit Institutions (amended) has tightened the maximum ownership ratio and lending ratio to limit the influence of shareholder groups as well as minimize risks from credit concentration for banks.
Read More

Your care

Latest Most read
No need to reduce the output of manufacturing and assembling automobile to enjoy preferential tariff

No need to reduce the output of manufacturing and assembling automobile to enjoy preferential tariff

The Ministry of Finance has responded to the suggestions of VAMA regarding the adjustment of reducing automobile volume to apply a tax rate of 0% for imported components and spare parts used for manufacturing automobile
Hundreds of tons of cinnamon essential oil are left in inventory due to export regulations

Hundreds of tons of cinnamon essential oil are left in inventory due to export regulations

VCN - Enterprises exporting cinnamon essential oil are facing difficulties due to regulations on pharmaceutical trading of the Ministry of Health, leading to hundreds of tons of essential oil being left in stock in raw material areas.
Business suspension of temporary import and re-export of Monazite ores and ore concentrates will be valid on May 13th

Business suspension of temporary import and re-export of Monazite ores and ore concentrates will be valid on May 13th

The Ministry of Trade and Industry issued Circular 05/2024/TT-BCT regulating the temporary suspension of temporary import and re-export of Monazite ores and ore concentrates business.
Improving the customs legal system to be modern, synchronous, unified and transparent

Improving the customs legal system to be modern, synchronous, unified and transparent

This is one of the contents related to the Customs field recently reported to the National Assembly by the Ministry of Finance.
New points about rules of origin in AKFTA

New points about rules of origin in AKFTA

The Ministry of Trade and Industry promulgated Circular 04/2024/TT-BCT amending and supplementing some articles of Circular 20/2014/TT-BCT dated June 25, 2014 regarding rules of origin in AKFTA
Mobile Version