Decree 41/2022/ND-CP – Amending regulations on the policy of reducing VAT to 8%

On June 20, 2022, the government issued Decree 41/2022/ND-CP amending Decree 123/2020/ND-CP on invoices and documents and Decree 15/2022/ND-CP on the policy of reducing VAT (value added tax) from 10% to 8%.

According to Decree 15/2022/ND-CP, the reduction of 2% of the VAT rate from February 1, 2022 to December 31, 2022 for groups of goods and services currently applying the VAT rate of 10% (remaining 8%) except for some goods and services. In which, there is a requirement to make a separate invoice with the tax rate of 8% for goods and services subject to VAT reduction.

However, according to many businesses, for the same customer, instead of making 1 invoice with different tax rates (5%, 8%, and 10%), the enterprise must make 2 invoices: 1 invoice with an 8% tax rate and 1 invoice with other tax rates (5%, 10%). This increases the cost of the business, specifically the cost of accounting time and the cost of using invoices.
To ensure that the contents of the invoice are appropriate and to remove obstacles according to the feedback of businesses, the government has issued Decree 41/2022/ND-CP as follows:

In the event a business applies VAT according to the deduction method when selling goods or providing services with different tax rates, the value-added invoice must clearly state the tax rate of each good or service.

In the event a business applies VAT according to the percentage method on revenue, when selling goods or providing services, the sales invoice must clearly state the reduced amount.

In addition, the Decree also issues a notice on the receipt and the result of the handling of the error in the e-invoice made according to Form No. 01/TB-HDSS, replacing Form No. 01/TB-SSDT Appendix IB, promulgated together with Decree 123/2020/ND-CP

From February 1, 2022 to June 20, 2022, any business that has complied with the provisions of Article 2 of Decree 41/2022/ND-CP will still be entitled to a reduction in VAT and will not have to adjust their tax invoices or be sanctioned for administrative violations on taxes and invoice.

Decree 41/2022/ND-CP takes effect from June 20, 2022.

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