ANTD.VN - Many supporting industry enterprises face fines and tax arrears because CNC machine tools are not eligible for value-added tax reduction, while most have declared a tax rate of 8% in 2022.
Speaking to reporters, a representative of the Vietnam Association of Supporting Industries (VASI) said that when Decree No. 15/2022/ND-CP takes effect, businesses importing numerical control (CNC) machine tools, including items such as: CNC machining centers, CNC electric pulse machines used to peel materials with electric sparks... have declared a value-added tax (VAT) rate of 8%.
However, this year, when settling taxes, the tax authority replied that the above items are not eligible for tax reduction. Specifically, the above items are called specialized machines, with industry code level 7 being 2822012, 2829959 in the Vietnam Product Industry System.
According to Decree No. 15/2022/ND-CP dated January 28, 2022, the HS code of this product is not included in Appendix I, II, III of the Decree, which is the list of items that are not eligible for VAT reduction.
In a written response to businesses, the General Department of Customs also said that imported CNC machining centers, CNC wire cutting machines, and CNC electric pulse machines are identified as specialized electronic equipment, belonging to IV, Part B, Appendix III issued with Decree 15/2022 and subject to 10% VAT.
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CNC machine items are not on the list of VAT reduction according to Decree 15/2022 |
Recently, VASI has sent a petition to the Ministry of Finance, the Ministry of Information and Communications, and the General Department of Customs requesting support for businesses in determining the value added tax rate in 2022.
According to VASI representative, the fact that the above items are not subject to tax reduction causes many difficulties for businesses, especially trading businesses - that is, businesses that import machines for sale. Because they have already sold them to other businesses with a tax rate of 8%, but when settling taxes, they have to pay a tax rate of 10%.
In addition, for businesses that have declared a tax rate of 8%, if they now apply a tax rate of 10%, it means they have declared the tax incorrectly and will be fined by the tax authority.
VASI said that computer numerical control (CNC) machine tools are the core technology in precision mechanical processing, commonly used in most industries, with a very large user base, including FDI enterprises and supporting industry enterprises.
“These businesses are facing many difficulties with the current economic situation. Reducing VAT on input production equipment, according to the Government's support goals, will partly help businesses recover soon,” said VASI.
Therefore, the Association recommends that agencies provide guidance on how to identify items belonging to the group of specialized electronic equipment in the Appendix issued with Decree 15/2022.
At the same time, instructions on the competent agencies, units and focal points to inspect and verify the goods of companies in which list are in the appendix issued with this Decree.
The State's guidance to clarify the above regulations is to directly support tax declaration for two subjects: Manufacturing enterprises, which are the subjects using machinery and must declare VAT when investing in equipment; and enterprises importing and trading machinery.
“Enterprises expect to receive guidance on accurate tax declaration, encouraging investment and reducing risks in production and business, as well as ensuring effective implementation of State policies to improve Vietnam's investment and business environment,” VASI's document recommended.
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