General Department of Taxation of Vietnam urges implementation of 2% VAT reduction
In order to implement Resolution No. 101/2023/QH15 dated June 24, 2023 and Decree No. 44/2023/ND-CP the General Department of Taxation of Vietnam has sent the Official Telegram.
The Official Telegram specifies that on June 30, 2023, the Government of Vietnam officially promulgated Decree No. 44/2023/ND-CP on VAT reduction policies according to Resolution No. 101/2023/QH15 dated June 24, 2023 of the National Assembly of Vietnam.
According to the Official Telegram, Decree No. 44/2023/ND-CP stipulates the reduction of VAT from June 1, 2023 to the end of December 31, 2023 for eligible goods and services that are applying 10% VAT, except certain goods and services.
Ministries and People's Committees of provinces and centrally affiliated cities shall, within their jurisdiction, direct relevant agencies to conduct and provide dissemination, guidelines, inspection, and supervision to make sure consumers understand and receive benefits from the VAT reduction as prescribed in Article 1 of Decree No. 44/2023/ND-CP which focuses on solutions to the stabilization of demand and supply of goods and services eligible for VAT reduction to stabilize the market price level (pre-VAT prices) from July 1, 2023 to the end of December 31, 2023.
The General Department of Taxation of Vietnam requests Tax Departments to provide dissemination to taxpayers in their areas for the timely implementation of Decrees on VAT reduction according to Resolution No. 101/2023/QH15.
VAT reduction in 2023
According to Clause 2 Article 1 of Decree No. 44/2023/ND-CP:
- Business establishments calculating VAT using the credit-invoice method may apply 8% VAT to goods and services that are currently applying 10% VAT (except for ineligible ones).
- Businesses (including household businesses and individual businesses) calculating VAT as a percentage of revenue (direct method) may reduce the VAT rate by 20% when issuing invoices for goods and services eligible for VAT reduction.
Official Telegram No. 05/CD-TCT of the General Department of Taxation of Vietnam was sent on June 30, 2023.
>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE
Above are the summary and notification of new documents for customers of THU VIEN PHAP LUAT. For more information, please send an email to [email protected].
1.249