Decree 94/2023/ND-CP regulating value added tax reduction policy according to Resolution 110/2023/QH15

DECREE

POLICY REGULATIONS ON VALUE ADDED TAX REDUCTION ACCORDING TO RESOLUTION NO. 110/2023/QH15 DATED NOVEMBER 29, 2023 OF THE NATIONAL ASSEMBLY

Pursuant to the Law on Government Organization dated June 19, 2015; Law amending and supplementing a number of articles of the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on Value Added Tax dated June 3, 2008; Law amending and supplementing a number of articles of the Law on Value Added Tax dated June 19, 2013; Law amending and supplementing a number of articles of the Law on Value Added Tax, Law on Special Consumption Tax and Law on Tax Administration dated April 6, 2016;

Pursuant to the Law amending and supplementing a number of articles of Tax Laws dated November 26, 2014;

Pursuant to the Law on Tax Administration dated June 13, 2019;

Pursuant to Resolution No. 110/2023/QH15 dated November 29, 2023 of the National Assembly on the 6th Session, 15th National Assembly;

At the request of the Minister of Finance;

The Government issued a Decree stipulating the value-added tax reduction policy according to Resolution No. 110/2023/QH15 dated November 29, 2023 of the National Assembly.

Article 1. Value added tax reduction

1. Reduce value added tax For groups of goods and services applying tax rate 10%, except for the following groups of goods and services:

a) Telecommunications, financial activities, banking, securities, real estate business insurance, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products. Details are in Appendix I issued with this Decree.

b) Products and services subject to special consumption tax. Details are in Appendix II issued with this Decree.

c) Information technology according to the law on information technology. Details are in Appendix III issued with this Decree.

d) The value-added tax reduction for each type of goods and services specified in Clause 1 of this Article is applied uniformly at all stages of import, production, processing, and commercial business. For sold coal products (including cases where coal is then screened and classified according to a closed process before being sold) are subject to value added tax reduction. Coal products included in Appendix I issued with this Decree, at stages other than the exploitation and sale stage, are not eligible for value added tax reduction.

Corporations and economic groups that carry out a closed process to sell are also subject to value added tax reduction on sold coal products.

In cases where goods and services listed in Appendixes I, II and III issued with this Decree are not subject to value-added tax or are subject to value-added tax 5% according to the provisions of the Tax Law Added value shall comply with the provisions of the Law on Value Added Tax and no reduction in value added tax is allowed.

2. Value added tax reduction

a) Business establishments that calculate value-added tax using the deduction method may apply the value-added tax rate of 8% for goods and services specified in Clause 1 of this Article.

b) Business establishments (including business households and individual businesses) calculate value added tax according to the % rate method on the reduced revenue of 20% at the % rate to calculate value added tax when implementing currently issue invoices for goods and services eligible for value added tax reduction specified in Clause 1 of this Article.

3. Implementation order and procedures

a) For business establishments specified in Point a, Clause 2 of this Article, when making value-added invoices providing goods and services subject to value-added tax reduction, at the value-added tax rate line. increase write “8%”; value added tax; total amount the buyer must pay. Based on the value-added invoice, business establishments selling goods and services declare output value-added tax, business establishments purchasing goods and services declare input value-added tax deduction. according to the reduced tax amount recorded on the value-added invoice.

b) For business establishments specified in Point b, Clause 2 of this Article, when preparing sales invoices for providing goods and services subject to value added tax reduction, in the "Amount" column, write in full. Money for goods and services before reduction, in the line "Plus money for goods and services" write the reduced amount 20% at the rate of % on revenue, and also note: "reduced... (amount) accordingly 20% rate % to calculate value added tax according to Resolution No. 110/2023/QH15".

4. In case a business establishment as prescribed in Point a, Clause 2 of this Article, when selling goods or providing services, applies different tax rates, the value-added invoice must clearly state the tax rate of each item. goods and services as prescribed in Clause 3 of this Article.

In case a business establishment as prescribed in Point b, Clause 2 of this Article sells goods or provides services, the sales invoice must clearly state the reduced amount as prescribed in Clause 3 of this Article.

5. In case the business establishment has issued an invoice and declared according to the tax rate or % rate to calculate the value added tax that has not been reduced according to the provisions of this Decree, the seller and the buyer will handle it. Invoices have been prepared according to legal regulations on invoices and documents. Based on the invoice after processing, the seller declares output tax adjustments, and the buyer declares input tax adjustments (if any).

6. Business establishments specified in this Article shall declare goods and services eligible for value added tax reduction according to Form No. 01 in Appendix IV issued with this Decree along with the Value Added Tax Declaration. increase.

Article 2. Effectiveness and implementation organization

1. This Decree takes effect from date January 1, 2024 through June 30, 2024.

2. Ministries according to their functions and tasks and the People's Committees of provinces and centrally-run cities direct relevant agencies to deploy propaganda, guidance, inspection and supervision so that consumers understand and receive benefit from the reduction of value-added tax specified in Article 1 of this Decree, which focuses on solutions to stabilize supply and demand of goods and services subject to value-added tax reduction to maintain stability. market price level (price without value added tax) from January 1, 2024 to June 30, 2024.

3. During the implementation process, if any problems arise, the Ministry of Finance shall guide and resolve them.

4. Ministers, Heads of ministerial-level agencies, Heads of Government agencies, Chairmen of People's Committees of provinces and centrally-run cities and relevant businesses, organizations and individuals are responsible responsible for implementing this Decree.

Download Appendix 1 here