Summary of new regulations on invoices- applied from 01 November 2021

How to write VAT invoices when getting tax reduction according to Decree 92/2021 from 01 November 2021 

Decree 92/2021/ND-CP regulating the reduction of value-added tax from 01 November 2021 to the end of 31 December 2021 for the following two groups of goods and services: 

- Group 1: Transportation services (railway transport, water transport, air transport, other road transports); lodging; foodservice; services of travel agencies, tour operators and support services, services relating to the promotion and organization of tours.

 - Group 2: Products and services of publishing; cinematographic services, television program production, sound recording and music publishing; works of art and services for composing, art and creation; services of libraries, archives, museums, and other cultural activities; sports, entertainment and entertainment services.

Enterprises and organizations eligible for VAT reduction shall make invoices as follows:

- For enterprises and organizations in group 1, when making value-added invoices for providing goods and services subject to value-added tax reduction, in the value-added tax line, the seller writes "the prescribed tax rate (5% or 10%) x 70%"; value-added tax; the total amount to be paid by the buyer. Based on value-added invoices, the sellers declare output value-added tax, and the buyers declare Deduct input value-added tax based on 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 "Total money" the seller writes the full amount of money for goods and services before the reduction. In the line " Sum of money for goods and services" the seller writes the number that has been reduced by 30%, and at the same time notes: "reduced... (amount) corresponding to 30% of the VAT rate on sales according to Resolution No. 406/NQ-UBTVQH15”. 

Note:

(1) In case an enterprise or organization sells many kinds of goods and services when making invoices, the enterprise or organization shall issue separate invoices for goods and services that are qualified for value-added tax reduction.

(2) In case an enterprise or organization has issued an invoice and declared at the VAT tax rate or percentage that has not been reduced, the seller and the buyer must make a minute or reach an agreement in writing to clearly state the misstatement, and the seller shall issue an adjusted invoice to the buyer. Based on the adjusted invoice, the seller declares the adjustment of output tax, and the buyer declares the adjustment of input tax (if any).

(3) In case an enterprise or organization selling goods and services eligible for value-added tax reduction has issued the pre-printed invoice in the form of a ticket with a pre-printed face value that has not been used up yet and has the need to continue using them, enterprises or organizations will imprint the reduced price next to the pre-printed price.

Deploying the application of e-invoices in some provinces/cities

According to Official Letter 10847/BTC-TCT dated 20 September 2021 of the General Department of Taxation, the Ministry of Finance has planned to deploy e-invoices in two phases: phase 1 from November 2021 and phase 2 from April 2022. Specifically, the implementation of e-invoice phase 1 applies to the following provinces and cities:

- Hanoi according to Decision 1830/QD-BTC dated 20 September 2021.

- Ho Chi Minh City according to Decision 1832/QD-BTC dated 20 September 2021

- Hai Phong under Decision 1839/QD-BTC dated 20 September 2021.

- Phu Tho according to Decision 1838/QD-BTC dated 20 September 2021.

- Quang Ninh under Decision 1833/QD-BTC dated 20 September 2021

- Binh Dinh under Decision 1831/QD-BTC dated 20 September 2021.

Thus, from November 2021, except for some cases where the conditions are not satisfied, enterprises, economic organizations, business households, and individuals doing business in the areas of the above-mentioned provinces and cities shall make electronic invoices.

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