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VietnameseDECREE 44/2023/ND-CP ON VAT REDUCTION
On June 30, 2023, The General Department of Taxation issued Public Notice 05/CD-TCT about the implementation of Decree 44/2023/ND-CP stipulating the value-added tax (VAT) reduction policy according to Resolution 101/2023/QH15 of The National Assembly.
Time Limit For Applying VAT Reduction Policy According To Decree 44/2023/ND-CP
The policy of reducing VAT as prescribed in Decree 44/2023/ND-CP is valid from July 1, 2023 to December 31, 2023.
Contents Of VAT Reduction Policy According To Decree 44/2023/ND-CP
Pursuant to the contents of Article 1 Decree 44/2023/ND-CP, reduce the VAT rate to 8% for groups of goods and services currently applying the 10% tax rate, except for the following groups of goods and services:
| Group of goods and services | Apply tax policy | Research base |
|---|---|---|
| – Telecommunications, financial activities, banking, securities, insurance, real estate, metals and prefabricated metal products, mining products (excluding coal mining), coke, oil refined mines and chemical products.
– Coal products are sold at stages other than mining. |
The new VAT reduction policy in 2023 is not applicable | Appendix I is attached Decree 44/2023/ND-CP |
| – For coal mined and sold (including the case of coal mined and then screened and classified according to a closed process to be sold) | Apply the policy of reducing VAT from 10% to 8% | Decree 44/2023/ND-CP |
| – Goods and services subject to excise tax | The new VAT reduction policy in 2023 is not applicable | Appendix II is attached Decree 44/2023/ND-CP |
| – Information technology under the law on information technology | The new VAT reduction policy in 2023 is not applicable | Appendix III is attached Decree 44/2023/ND-CP |
| – Goods and services are not taxable and subject to 5% VAT according to the Law on VAT | Continue to apply according to the previous VAT law, not apply the new VAT reduction policy in 2023 | Circular No. 219/2013/TT-BTC |
VAT Reduction Level According To Decree 44/2023/ND-CP
Pursuant to the contents of Clause 2, Article 1 Decree 44/2023/ND-CP, the VAT reduction is regulated as follows:
| VAT calculation method | The previous VAT rate | The VAT rate after applying Decree 44/2023/ND-CP |
|---|---|---|
| Deduction method | 10% | 8% – For the group of goods and services eligible for tax reduction |
| Method of percentage on revenue (including business households and business individuals) | The percentage of VAT calculation depends on each type of service and goods | 20% discount rate for VAT calculation |
How To Issue 8% VAT Invoice According To Decree 44/2023/ND-CP
According to Decree 44/2023/ND-CP, instructions for making an 8% VAT invoice are as follows:
For business establishments that calculate VAT by the deduction method:
When making a value-added invoice for goods and services eligible for VAT reduction:
– At the “VAT rate” line, write: “8%“.
– Value-added tax; The total amount to be paid by the buyer is calculated and recorded at the tax rate of 8%.
Note: In case a business establishment calculates VAT by the credit method when selling goods or providing services with different tax rates, the value-added invoice must clearly state the tax rate of each goods or service as prescribed in Clause 3, Article 1 Decree 44/2023/ND-CP.
For business establishments (including business households and business individuals) that VAT is calculated according to the percentage method on revenue:
When making sales invoices for goods and services eligible for VAT reduction:
– In the column “Amount” – “Thành tiền”: Write the full amount of goods and services before reducing.
– In the line “Total Amount” – “Cộng tiền hàng hóa, dịch vụ”: Write the number that has reduced 20% of the percentage of revenue.
Also note: “đã giảm… (số tiền) tương ứng 20% mức tỷ lệ % để tính thuế giá trị gia tăng theo Nghị quyết 101/2023/QH15” – “an amount of……., equivalent to 20% of the rate (%) used as the basis for calculating VAT, is reduced according to the Resolution No. 101/2023/QH15” on the issued invoice.
References:
– Public Notice 05/CD-TCT: https://thuvienphapluat.vn/van-ban/Thue-Phi-Le-Phi/Cong-dien-05-CD-TCT-2023
– Decree 44/2023/ND-CP: https://xaydungchinhsach.chinhphu.vn/toan-van-nghi-dinh-44-2023
– Resolution 101/2023/QH15: https://thuvienphapluat.vn/van-ban/Bo-may-hanh-chinh/Nghi-quyet-101-2023-QH15
– Circular No. 219/2013/TT-BTC: https://thuvienphapluat.vn/van-ban/Thue-Phi-Le-Phi/Thong-tu-219-2013-TT-BTC
– Circular 26/2015/TT-BTC: https://thuvienphapluat.vn/van-ban/Thue-Phi-Le-Phi/Thong-tu-26-2015-TT-BTC
– Circular 43/2021/TT-BTC: https://thuvienphapluat.vn/van-ban/Thue-Phi-Le-Phi/Thong-tu-43-2021-TT-BTC