4 NEW POINTS IN DECREE 15/2022/ND-CP: REDUCING VAT

1. What goods and services are eligible for VAT reduction?

Clause 1, Article 1 of Decree 15/2022/ND-CP clearly states that the VAT reduction is applicable to the group of goods and services currently subject to the 10% tax rate, except for the following goods and services:

✨Telecommunications, financial activities, banking, securities, insurance, real estate trading, metals, coke, refined petroleum, chemical products...

✨ Products and services subject to excise tax: cigarettes, cigars, wine, beer, cars with less than 24 seats, two-wheeled and three-wheeled motorcycles with a cylinder capacity of over 125cm3, boats, yachts, the gasoline of all kinds, playing cards, votive papers, votive goods; business discos, massage, casino, karaoke, electronic games with prizes, bets, golf, lottery...

✨ Information technology: Smart cards, sound cards, computers, vending machines, ATMs, scanners, printers connected to automatic data processing machines, monitors and projectors, storage boxes, television cameras, universal and smart mobile phones, tablets...

Note:

•  If the goods and services mentioned above are not subject to VAT or are only subject to 5% VAT, they are not entitled to VAT reduction.
•  The reduction of VAT is applied uniformly at the stages of import, production, processing, business, and trade.

2. The VAT reduction rate?

Clause 2, Article 1 of Decree 15/2022/ND-CP states:

a) Businesses that calculate value-added tax by the deduction method may apply the value-added tax rate of 8% for goods and services specified in Clause 1 of this Article.

b) Businesses (including business households and business individuals) that calculate value-added tax according to the percentage method on turnover are entitled to a reduction of 20% of the percentage rate to calculate value-added tax when issuing invoices for goods and services eligible for value-added tax reduction specified in Clause 1 of this Article.

Accordingly, equivalent to two forms of VAT calculation, there are two tax reduction rates as follows:

🍂 Goods and services subject to 10% VAT: New VAT rate of 8% is applied (2% reduction compared to normal).

🍂 Goods and services subject to VAT calculation according to the percentage method on revenue: Reduce 20% of the percentage rate to calculate VAT when issuing invoices with the above tax-reduced goods and services.

3.  VAT reduction procedure 

Depending on different VAT calculation methods, businesses will carry out different VAT reduction procedures, specifically:

Note:

• Goods and services eligible for VAT reduction must be invoiced separately. If not set up separately, VAT will not be reduced.
• A business that has issued invoices and declared according to the tax rate or percentage to calculate VAT that has not yet been reduced: The seller and the buyer make a record/agreement clearly stating the error; The seller issues an invoice correcting the error and delivers it to the buyer.
• Business who is the object of VAT reduction has issued invoices in the form of tickets with a pre-printed face value that have not been used up yet and want to continue using: Stamped according to the reduced price 2% of VAT/reduced price 20% of the percentage level next to the pre-printed price criteria for further use.

4. When is VAT reduction implemented?

📌 This Decree takes effect from February 1, 2022. The policies on VAT reduction are applied from February 1, 2022, to the end of December 31, 2022, according to Clause 1, Article 3 of this Decree.

📌 Therefore, right from the first days of February 2022 - after this 2022 Lunar New Year, VAT reduction has been applied.

📌 There are 04 new points on VAT reduction according to Decree 15/2022/ND-CP. If you still have questions, please contact TASCO for free support and answers.

Immediately contact TASCO Tax Agent in the following ways for a completely free consultation!!!

TASCO - Tax agent responsible for all service

           TASCO - Give trust - get value

Please contact TASCO for a free consultation:

 Hotline: 086.486.2446 - 0975.08.68 (zalo)

 Website: dailythuetasco.com hoặc dichvutuvandoanhnghiep.vn

 Email:  lienhe.dailythuetasco@gmail.com