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To: Tax Departments of provinces and centrally run cities.

On October 19, 2021, the National Assembly Standing Committee issued Resolution No. 406/NQ-UBTVQH15 on a number of solutions to support businesses and people affected by the Covid-19 epidemic (hereinafter referred to as the Covid-19 epidemic). “Resolution”).

On October 27, 2021, the Government issued Decree No. 92/2021/ND-CP detailing the implementation of the Resolution.

On October 28, 2021, the Ministry of Finance issued Official Letter No. 12373/BTC-TCT to the People’s Committees of the provinces and centrally-run cities and a number of related ministries on the implementation of Resolution No. 406/NQ -UBTVQH15.

In order to promptly and effectively implement the Resolution, following the Official Dispatch No. 08/CD-TCT dated October 22, 2021, the General Department of Taxation has the following comments:

1.  The General Department of Taxation shall copy and send the full text of Decree No. 92/2021/ND-CP dated October 27, 2021 of the Government for Tax Departments to implement. In the process of implementing the Resolution, the Decree needs to create favorable conditions for businesses, organizations and people, and at the same time have the responsibility to check and supervise the selling prices of goods and services (prices exclusive of VAT). ) from November 1, 2021 of businesses and organizations in the area to achieve the goal of consumers enjoying benefits from the reduction of VAT according to the provisions of Clause 3, Article 1 and Clause 1, Article 2 of this Law. Resolution. In case of detecting the phenomenon of taking advantage of the State’s policies to increase the selling price of goods and services eligible for VAT reduction, it is necessary to promptly advise the People’s Committee of the province and city to handle them.

2.  Invoicing for goods and services subject to VAT reduction

In Clause 3, Article 3 of Decree No. 92/202 1 /ND-CP, the order and procedures for VAT reduction are as follows:

“3. Order and procedures for implementation

a) For enterprises and  organizations  specified at Point  a ,  Clause 2 of this Article, when making value –  added invoices ,  they provide goods and services  subject to price reduction .  value-added, in the value -added tax line, write “the  prescribed tax rate (5% or 10%)  x  70%”; value added tax ; _ t amount of money  the buyer must _i pay n . To receive  value-added invoices , enterprises , goods  production and business organizations, and service providers declare output value-added tax, enterprises and production and  business organizations purchase goods , the service of declaration and deduction of input value-added tax according to the  reduced tax amount recorded on the value-added invoice .

b) For enterprises and organizations specified at Point b, Clause 2 of this Article, when making sales invoices for the provision of goods and services subject to value-added tax reduction , in the column “Total money” fully write down the money for goods and services before the reduction, in the line “Additional money for goods and services” write the number that has decreased by 30  % of the rate on revenue, and at the same time note :  ” reduced … ( amount  ) equivalent to 30% of the rate to  calculate value added tax according to Resolution No. 406  /NQ-UBTVQH15” . “

Based on the above provisions, the General Department of Taxation guides the example of invoice making as follows:

Example 1:

Company A, which is an enterprise that calculates VAT by the deduction method, provides transportation services for Company B under the contract signed between the two parties, the taxable price is VND 20,000,000. Transportation services are subject to a 10% tax rate and are eligible for a 30% reduction in VAT rate from November 1, 2021 to the end of December 31, 2021. On November 15, 2021, Company A provides transportation services for Company B, when making a VAT invoice to deliver to Company B, Company A records the following:

In the column “Goods and services” write: “Transportation services”

Selling price recorded: 20,000,000 VND

VAT rate recorded: “10% x 70%”

VAT amount recorded: “1,400,000 VND”

Total payment price: “21,400,000 VND”.

Based on the VAT invoice, Company A declares output VAT, Company B declares and deducts VAT according to the reduced tax amount written on the invoice as VND 1,400,000.

Example 2:

Organization X, which calculates VAT according to the percentage method on revenue, provides accommodation services for customer Y in 02 days of November 2021 with a listed room price of VND 1,500,000/day. . According to the provisions of Clause 2, Article 13 of Circular No. 219/2013/TT-BTC dated December 31, 2021 of the Ministry of Finance, accommodation services apply the percentage rate for calculating VAT on revenue of 5%. During the period of VAT reduction according to Resolution No. 406/NQ-UBTVQH15 of the Standing Committee of the National Assembly, organization X calculates the reduced VAT amount and issues a sales invoice to deliver to customer Y as follows:

In the column “Goods and services” write: “Accommodation services”

In the column “Into money” write: “3,000,000 VND” (1,500,000 VND x 2)

Calculate the amount of VAT to be reduced: 3,000,000 x 5% x 30% = 45,000 VND

In the line “Adding money for goods and services”  ( which is the amount  the buyer has to pay to the seller  ) write  the amount that has been reduced by 30%, the percentage of revenue is “2,955,000 VND”, at the same time. note: “reduced by VND 45,000, equivalent to 30% of the percentage of revenue according to Decree No. 406/NQ-UBTVQH15”.

The General Department of Taxation requires Tax Departments to thoroughly understand and strictly implement the above contents. In the course of implementation, if difficulties and problems arise, the Tax Departments are requested to report to the General Department for timely handling.

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