The Government has just issued Decree 92/2021/ND-CP guiding tax exemption and reduction policies to support businesses and people to overcome difficulties caused by the impact of the COVID-19 epidemic.

Value added tax reduction

Reducing value-added tax from November 1, 2021 to the end of December 31, 2021 for the following 02 groups of goods and services:

• Group 1:  Transportation services (railway transport, water transport, air transport, other road transport); Lodging; Food Service; services of travel agencies, tour operators and support services, related to the promotion and organization of tours.
• Group 2: Publishing products and services; cinematographic services, television program production, sound recording and music publishing; artwork and creative, artistic, entertainment services; services of libraries, archives, museums and other cultural activities; sports, entertainment and entertainment services.

Details of goods and services eligible for tax reduction specified at Points a and b of this Clause shall comply with Appendix 1 of the List of goods and services eligible for value-added tax reduction promulgated together with Decree 92. The goods and services specified at Point b of this Clause do not include publishing software and goods and services produced and sold in the online form.

For businesses and organizations eligible for VAT reduction, invoices are written as follows

• For enterprises and organizations in group 1, when making value-added invoices for the provision of goods and services subject to value-added tax reduction, in the value-added tax line, write “tax rate according to regulations (5% or 10%) x 70%”; value added tax; the total amount to be paid by the buyer.

Based on value-added invoices, enterprises and organizations that produce and trade in goods and services declare output value-added tax, and enterprises and production and business organizations purchase goods and services and declare Deduct input value-added tax according to the reduced tax amount written on the value-added invoice.

• For enterprises and organizations in group 2, when making sales invoices for the provision of goods and services subject to value-added tax reduction, in the column “Amount of money” write the full amount of goods and services in advance. When decreasing, in the line “Adding money for goods and services” write the number that has reduced 30% of the percentage of revenue, and at the same time note: “reduced… (amount) corresponds to 30% of the rate for calculation. value added tax under Resolution No. 406/NQ-UBTVQH15”.
• 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, which is entitled to value added tax reduction.
• In case an enterprise or organization has issued an invoice and declared at the tax rate or percentage to calculate the value added tax that has not yet been reduced, the seller and the buyer must make a record or reach an agreement in writing. record of the error, and the seller issues an invoice to correct the error and delivers the correcting invoice to the buyer. Based on the adjusted invoice, the seller declares and adjusts the output tax, and the buyer declares the adjustment of input tax (if any).

In case an enterprise or organization dealing in goods and services eligible for value-added tax reduction has issued an ordered invoice printed in the form of a ticket with a pre-printed face value that has not yet been used up and has a need to continue. If used, the enterprise or organization shall stamp according to the price that has reduced 30% of the value-added tax rate or the price that has been reduced by 30% of the percentage rate next to the pre-printed price criterion for continued use.

Value-added tax reduction

• Enterprises and organizations that calculate value-added tax by the deduction method 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 revenue are entitled to a 30% reduction of the percentage rate to calculate value-added tax.

Above is our advice on this matter. If you need more detailed advice as well as how to access this service, please contact Lawyer – Mr. Nguyen Duc Trong directly via hotline: 0912.35.65.75, 0912.35.53.53 or call Free Consultancy Center 1900.6575 or send a service request via email: info@hongbanglawfirm.com

We wish you and your family good health, peace and success!

Best regards!

Hong Bang Law Firm.