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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%.
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.
Source: Customs News