On June 30, 2023, the Government officially issued Decree 44/2023/ND-CP stipulating the value-added tax reduction policy according to Resolution No. 101/2023/QH15 dated June 24, 2023 of the National Assembly. festival.
The basic information about Decree 44/2023/ND-CP issued by the Government stipulating the contents of the new value-added tax reduction policy in 2023 includes:
|December 31, 2023
The value-added tax rate for groups of goods and services currently applying the 10% tax rate will be reduced to 8%, except for the following groups of goods and services:
Accordingly, the subjects eligible for tax reduction under Decree 44/2023/ND-CP will include goods and services currently subject to the 10% value-added tax rate and are not in the group of goods and services specified in Clause 1 of this Article. Appendix I, II, III issued together with Decree 44/2023/ND-CP.
In addition, Decree 44/2023/ND-CP has renewed and added regulations on reducing value-added tax of 2% for coal products sold by corporations, real economic groups. implementing a closed process, specifically:
From the regulations on tax reduction policy, it can be seen that when reducing 2% VAT, the first and direct beneficiaries will be consumers. Because VAT is an indirect tax and is included in the selling price of products, goods and services. Therefore, when tax reduction is adjusted, the price of goods and services will also decrease, so that people can buy more goods and services with the same amount of money. Besides consumers, businesses also benefit because when people increase consumption (increase demand) will stimulate production enterprises (increase supply). In addition, VAT is an indirect tax and is collected through sellers, so when it is reduced from 10% to 8%, businesses will be able to reduce the capital spent to pay VAT at the input stages when buying raw materials. , fuel, materials and other inputs in a capital turnover cycle. This means that businesses will be able to save financial resources equivalent to 2% (equal to the tax reduction rate) of their total purchases. However, the tax reduction to stimulate shopping is not large when people tighten their spending due to the current economic context, and at the same time, small businesses are not too affected by the tax reduction compared to small businesses. big business.
In addition to the subjects entitled to a 2% tax reduction, Decree 44/2023/ND-CP stipulates the list of goods and services not eligible for value-added tax reduction in the attached Appendixes. Basically remain the same as the attached Annexes of Decree 15/2022/ND-CP and only change some HS codes to be consistent with HS codes according to the List of exported and imported goods of Vietnam issued by Vietnam. issued together with Circular 31/2022/TT-BTC dated June 8, 2022 of the Ministry of Finance.
Decree 44/2023/ND-CP amending the last notes on the List of goods and services in Appendix I and Appendix III to be consistent with the principle of goods classification according to the List of exported and imported goods. Vietnam, specifically:
The value-added tax reduction is specified in Decree 44/2023/ND-CP as follows:
In addition, Decree No. 44/2023/ND-CP also details some points to note about tax reduction policy as follows:
Tax reduction procedures are specified in Clause 3, Article 1, Decree 44/2023/ND-CP:
Business establishments falling into the categories specified at Point a, Clause 2, Article 1, Decree 44/2023/ ND-CP, when making a value-added invoice to sell goods and provide tax-reduced services, it is necessary to note the following:
As for the business establishments specified at Point b, Clause 2, Article 1 of Decree 44/2023/ND-CP, when making a value-added invoice, the sale of goods and provision of services is entitled to a reduction. Taxes will need to note the following:
Clause 5, Article 1 of Decree 44/2023/ND-CP amending instructions for making invoices:
Decree 44/2020/ND-CP amends the instructions for making invoices to conform to the provisions of the law on invoices.
Decree 44/2023/ND-CP stipulates that in case a business establishment has issued an invoice and declared the value-added tax rate or the applicable percentage of value-added tax calculation at the rate that has not been reduced, the seller and the buyer handles the invoice in accordance with the law on invoices and documents. After processing, the invoice will be used as a basis for the seller to declare and adjust the output tax, and the buyer to declare and adjust the input tax (if any).
In addition, Decree 44/2023/ND-CP guides the declaration of goods and services eligible for value-added tax reduction according to Form No. 01, Appendix IV, issued together with the Decree together with the VAT declaration. increase.
If you need advice on value-added tax reduction policy and tax reduction procedures, please contact Viet An Law Firm for the best support.
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