Tiếng Việt
中文 (中国)
On October 19, 2021, the National Assembly issued Resolution No. 406/NQ-UBTVQH15 on a number of solutions to support businesses and citizens affected by the Covid-19 epidemic. The resolution consists of 3 articles and takes effect from October 19, 2021.
Specifically, value-added tax reduction from November 01, 2021, to the end of December 31, 2021, shall be applied to the following commodities and services:
– Transport service (rail, water, aviation transport, and road transport; accommodation service; food and beverage service; services of travel agencies, tour operators and support services related to promotion and organization of tours);
– Publishing products and services; services of cinematography, television program production, sound recording, and music publishing; artworks, creative, art services; services of libraries, archives, museums, and other cultural activities; sports and entertainment services (excluding publishing software and commodities, services produced and traded online).
Subjects of VAT reduction according to Resolution 406/NQ-UBTVQH15
Depending on the tax calculation method, the value-added tax reduction is applied as follows:
Enterprises and organizations that calculate value-added tax by the credit method of production and trading of goods and services specified according to the Resolution are entitled to a reduction of 30% of the value-added tax rate.
Enterprises and organizations that calculate value-added tax according to the percentage method on the turnover of production and trading of goods and services specified according to the Resolution are entitled to a reduction of 30% of the percentage rate for calculating value-added tax.
Pursuant to regulations on invoices for selling goods and providing services, the making of invoices for goods and services eligible for VAT reduction is as follows:
1. In case an enterprise or organization trades in many goods and services:
When making invoices, the enterprise or organization shall issue a separate invoice for goods and services to receive a VAT reduction.
2. In case an enterprise or organization has issued an invoice and declared according to the tax rate or percentage of VAT for calculation of VAT that has not been reduced:
The seller and the buyer must make a record or have a written agreement stating that clearly indicate the error, and at the same time, the seller issues an invoice to correct the error and delivers the adjusted invoice to the buyer. Based on the adjusted invoice, the enterprise or organization declares and adjusts the output tax, and the buyer declares and adjusts the input tax.
3. In case an enterprise or organization dealing in goods and services eligible for VAT reduction has issued an ordered invoice printed in the form of a ticket with a pre-printed face value that has not been used up yet and wishes to continue using it:
Enterprises and organizations make stamps according to the price that has been reduced by 30% of the VAT rate or the price that has been reduced by 30% of the percentage rate next to the pre-printed price criterion for continued use.
ASL LAW is the top-tier Vietnam law firm for tax law consulting service. If you need any advice, please contact us for further information or collaboration.
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