On June 30, 2023, the Government issued Decree No. 44/2023/ND-CP stipulating the value-added tax reduction policy according to Resolution No. 101/2023/QH15 dated June 24, 2023 of the National Assembly.

Accordingly, the value-added tax reduction for groups of goods and services currently applied at the tax rate of 10%, except for the following groups of goods and services:

• Firstly, telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coal coke, refined petroleum, chemical products. (Details are in Appendix I issued together with this Decree).

• Second, goods and services are subject to excise tax. (Details are in Appendix II issued together with this Decree).

• Third, information technology under the law on information technology. (Details are in Appendix III issued together with this Decree).

The value-added tax reduction for each type of goods and services specified in Clause 1 of this Article shall be 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 to this Decree are not eligible for value-added tax reduction at other stages other than the mining stage.

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 this Decree are not subject to value-added tax or subject to 5% value-added tax under the provisions of this Law. Value-added tax shall comply with the provisions of the Law on Value-Added Tax and may not reduce value-added tax.

Value-added tax reduction

Regarding the value-added tax reduction, the Decree stipulates that business establishments that calculate value-added tax by the deduction method may apply the value-added tax rate of 8% for the goods and services specified in the Decree No. in Clause 1 of this Article.

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

Order and procedures for implementation

Regarding the implementation order and procedures, the Decree stipulates: For business establishments specified at Point a, Clause 2 of this Article, when making value-added invoices, they provide goods and services subject to tax reduction. value added, 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 at Point b, Clause 2 of this Article, when making sales invoices for the provision of goods and services subject to value-added tax reduction, in the column “Amount to cash” write the full amount of goods and services. Before reducing goods and services, in the line “Adding 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″ % percentage rate for calculating value added tax according to Resolution No. 101/2023/QH15”.

• In case a business establishment specified at Point a, Clause 2 of this Article, when selling goods or providing services, applies different tax rates, the value-added invoice must clearly state the tax rate of each good. , services as prescribed in Clause 3 of this Article.

• In case the business establishment specified at Point b, Clause 2 of this Article, when selling goods or providing services, the sale invoice must clearly state the amount of the reduction as prescribed in Clause 3 of this Article.

• If the business establishment has issued an invoice and declared at the tax rate or percentage to calculate the value added tax that has not been reduced as prescribed in this Decree, the seller and the buyer shall process the invoice. have been prepared in accordance with the law on invoices and vouchers. Based on the invoice after processing, the seller declares and adjusts the output tax, and the buyer declares the adjustment of input tax (if any).

Business establishments specified in this Article shall declare goods and services eligible for value-added tax reduction according to Form No. 01 in Appendix IV issued with this Decree together with the value-added tax declaration.

Implementation effect and organization of implementation

Decree No. 44/2023/ND-CP takes effect from July 1, 2023 to the end of December 31, 2023.

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