On June 20, 2022, the Government issued Decree No. 41/2022/ND-CP (“Decree 41”) amending and supplementing a number of articles of Decree No. 123/2020/ND-CP dated 19 October 10, 2020 of the Government stipulating invoices and documents and Decree No. 15/2022/ND-CP dated January 28, 2022 of the Government stipulating tax exemption and reduction policies according to Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the program of economic recovery and development. Decree 41 toook effect from June 20, 2022 with the following highlights:
1. Amendment on invoicing in case there are different value-added tax (VAT) rates
Under Decree No. 15/2022/ND-CP, groups of goods and services currently being applied the 10% VAT rate will be entitled to a 2% reduction (i.e. to 8%) from February 1, 2022 until the end of December 31, 2022, except for some goods and services. In order to ensure the conformity of contents on invoices, Decree 41 amended regulations on invoice making as follows:
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Decree 15/2022/ND-CP |
Decree 41 (amended Decree 15) |
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• Business units must make separate invoices for goods and services eligible for VAT reduction, or otherwises, it will not entitled to VAT reduction (Article 1.4 of Decree 15). • For example: When a customer buys numerous types of goods, instead of making 1 invoice with different tax rates, the business establishment must make 2 invoices: 01 invoice separately stating the tax rate for goods and services being subject to VAT reduction to 8%; and 01 invoice for other tax rates. |
• In case a business unit calculates VAT by the deduction method: When selling goods and services with different tax rates, the VAT invoice must clearly state the tax rate of each good or service according to regulations. • In case a business unit calculates VAT according to the percentage method on revenue: When selling goods and services, the sales invoice must clearly state the amount of the reduction according to regulations. (Article 2 of Decree 41). => It is only required 01 VAT invoice stating the tax rate of each type or 01 sales invoice specifying the amount to be reduced. |
2. In case a business unit has made a VAT invoice pursuant to Article 2 of Decree 41 (from February 1, 2022 to June 20, 2022), it is still entitled to VAT reduction and does not have to either adjust its invoices, or get tax and invoice penalties.
Comment: