On June 30, 2023, the Government issued Decree No. 44/2023/ND-CP stipulating the value-added tax reduction policy under Decision No. 101/2023/QH15 dated June 24, 2023 of the National Assembly.
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Accordingly, the value-added tax reduction policy for groups of goods and services currently applying the tax rate from 10% to 8%, the order of implementation and effect of the new policy is specified as follows:
Photo 1. Reduced Value Added Tax to 8% from July 1, 2023_Hotline: 097 211 8764
First, reduce value-added tax for groups of goods and services currently applying 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, detailed in Appendix I promulgated together with the above Decree;
- Products and services subject to special consumption tax, detailed in Appendix II issued together with the above Decree;
- Information technology in accordance with the law on information technology, detailed in Appendix I issued together with the above Decree;
- The reduction of value added tax for each type of goods and services above is applied uniformly at the stages of import, production, processing, business and trade. For the sold coal products (including the case of coal mined and then screened, classified according to a closed process, then sold) subject to value-added tax reduction. Coal products listed in Appendix I issued together with the above Decree are not eligible for value-added tax reduction at stages other than mining and sale.
Corporations and economic groups that carry out a closed process to sell are also subject to value-added tax reduction for sold coal products.
In case the goods and services mentioned in Appendices I, II and III issued together with the above Decree are not subject to value-added tax or subject to 5% value-added tax under the provisions of the Law on Value-added tax shall comply with the provisions of the Law on Value-Added Tax and cannot reduce value-added tax.
Second, Value-added tax reduction
- (1): Business establishments that calculate value-added tax by the credit method may apply the value-added tax rate of 8% for goods and services specified in the First part;
- (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 20% reduction of the percentage rate to calculate value-added tax when issuing invoices for goods and services eligible for value added tax reduction specified in the First part.
Third, the order and procedures for implementation
- For business establishments specified in item (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; 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 item (2), when making sales invoices for the provision of goods and services subject to value-added tax reduction, in the column "Income money" write the full amount of goods and services. , services before the reduction, in the line "Adding money for goods and services" write the number that has decreased by 20% in the percentage of revenue, and at the same time note: "reduced... (amount) respectively. 20% of the percentage rate for calculating value added tax according to Resolution No. 101/2023/QH15”.
Fourth, Effectiveness
The above policy is effective from July 1, 2023 to the end of December 31, 2023.
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