Official Dispatch 2121/TCT-CS dated 29/05/2023 of the General Department of Taxation in 2023 on the Invoicing of 8% Tax for 2022 (Summary)

1. Time to issue specific invoices:

In accordance with Official Letter 2688/BTC-TCT dated March 23, 2022 and Official Letter 3522/TCT-CS dated September 22, 2022, invoices are recorded at the tax rate of 8% from February. 2022 to December 2022.

2. Invoicing in some cases:

- In cases where goods and services are eligible for VAT reduction and an error is discovered, it must issue an adjusted or replaced invoice without affecting the amount of goods and VAT payable or adjusting the tax calculation price. The adjusted or replaced invoices shall be issued at the VAT rate of 8%.
Where errors in quantity of goods lead to errors in goods and VAT, the adjusted or replaced invoice shall apply the VAT rate prescribed at the time of making the adjusted or replaced invoice.

In the case of goods purchased before January 1, 2023, at the tax rate of 8%, after December 31, 2022, if the buyer returns the goods due to improper specifications and quality, the seller issues a goods return invoice to reduce or replace the issued invoice with the VAT rate of 8%. The seller and the buyer have an agreement to clearly state the returned goods.

In case the business applies the form of commercial discount for customers and for commercial discounts of goods eligible for VAT reduction at the rate of 8% sold in 2022 but only invoices are issued from January 1, 2023, showing the content of the trade discount:

+ In case the discount amount is made on the last purchase or the next period after December 31, 2022, the discount amount of the sold goods is calculated and adjusted at the taxable price content, and the tax rate shall comply with the current law at the time of making the invoice.

+ In case the discount amount is made at the end of the discount program (period) after December 31, 2022, the seller shall issue an adjusted invoice and apply the VAT rate of 8% at the time of sale.

- In cases where the business sells goods or provides services from February 1, 2022, to December 31, 2022, and issued invoices after December 31, 2022,and construction and installation activities with the acceptance of completed construction from February 1, 2022, to December 31, 2022, and issued invoices after December 31, 2022, the VAT tax rate of 8% still applied but was subject to the administrative penalty for the act of making invoices at the wrong time.

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