When can enterprises make an invoice for VAT reduction of 8%

Source: Internet

Accordingly, for cases in which business establishments sign a contract to provide services with collection, and issued an invoice at the time of collection before February 1, 2022 at the tax rate of 10%, the service is completed within a period from February 1, 2022 to the end of December 31, 2022, if the amount is invoiced before February 1, 2022, it would not be eligible for value-added tax (VAT) reduction.

For the remaining unpaid amount, if the invoice is made from February 1, 2022 to the end of December 31, 2022, the policy of reducing VAT from 10% to 8% will be applied.

Also according to this guidance, in case a business establishment is subject to a tax rate of 10% in January 2022 but has not issued an invoice until February 2022, it belongs to the case of making invoices at the wrong time and is not eligible for VAT reduction.

For invoices made before February 1, 2022 with the VAT rate of 10%, after February 1, 2022, it arises errors that need to be adjusted, the adjusted invoices and returned invoices will be made with the VAT rate of 10%.

For activities of providing specific goods and services such as electricity supply, business establishments are entitled to a reduction in VAT following the regulations for making invoices from February 1, 2022 to the end of December 31, 2022.

The General Department of Taxation also requested tax departments to guide taxpayers to compare goods and services that taxpayers produce and trade with groups of goods and services that are excluded from the tax reduction stipulated in Clause 1, Article 1 of Decree No. 15/2022/ND-CP and the List of goods and services not eligible for tax reduction in Appendix I, II, III issued together with Decree No. 15/2022/ND-CP to comply with regulations.