1. Subjects of VAT reduction
According to the provisions of Clause 1, Article 1 of Decree 180, VAT reduction is applied to groups of goods and services currently subject to a tax rate of 10%, except for the following groups of goods and services:
- Telecommunications, financial activities, banking, securities, insurance, real estate business, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products. Details in Appendix I issued with Decree 180.
- Goods and services subject to special consumption tax. Details in Appendix II issued with Decree 180.
- Information technology according to the law on information technology. Details in Appendix III issued with Decree 180.
Note:
- The VAT reduction for each type of goods and services as prescribed above is applied uniformly at the stages of import, production, processing, and commercial business. For coal products sold (including coal mined and then screened and classified according to a closed process before being sold) are subject to VAT reduction. Coal products in Appendix I issued with Decree 180, at stages other than mining and selling, are not subject to VAT reduction.
Corporations and economic groups that implement a closed process to sell are also subject to VAT reduction on coal products sold.
- In case the goods and services listed in Appendices I, II and III issued with Decree 180 are not subject to VAT or are subject to 5% VAT, VAT will not be reduced.
2. VAT reduction level
Decree 180 stipulates the VAT reduction rate as follows:
- Business establishments calculating VAT according to the deduction method are subject to a VAT rate of 8% for the goods and services specified above.
- Business establishments (including business households and individual businesses) calculating VAT according to the percentage method on revenue are entitled to a 20% reduction in the percentage rate for calculating VAT when issuing invoices for goods and services eligible for VAT reduction as prescribed above.
3. How to make VAT invoice when reducing VAT
- For businesses that calculate VAT using the deduction method: When making a VAT invoice to provide goods and services subject to VAT reduction, write “8%” in the VAT rate line; VAT amount; total amount the buyer must pay. Based on the VAT invoice, businesses that sell goods and services declare output VAT, businesses that purchase goods and services declare input VAT deduction according to the reduced tax amount stated on the VAT invoice.
- For business establishments (including business households and individual businesses) calculating VAT according to the percentage method on revenue, when making sales invoices for providing goods and services subject to VAT reduction: in the "Total amount" column: record the full amount of goods and services before reduction; in the "Total amount of goods and services" line, record the amount reduced by 20% of the percentage on revenue, and note: "reduced... (amount) corresponding to 20% of the percentage to calculate VAT according to Resolution No. 174/2024/QH15".
Note:
In case the business establishment specified in Point a, Clause 2, Article 1 of Decree 180 applies different tax rates when selling goods or providing services, the VAT invoice must clearly state the tax rate of each invoice. When providing services, the sales invoice must clearly state the amount of reduction as prescribed in Clause 3 of this Article.
In case the business establishment as prescribed in Point b Clause 2 Article 1 of Decree 180 sells goods or provides services, the sales invoice must clearly state the amount of discount as prescribed in Clause 3 of this Article.
In case the business establishment has issued an invoice and declared according to the tax rate or percentage to calculate VAT that has not been reduced according to the provisions of Decree 180, the seller and the buyer shall process the issued invoice according to the provisions of law on invoices and documents. Based on the invoice after processing, the seller shall declare and adjust the output tax, the buyer shall declare and adjust the input tax (if any).
Business establishments specified in Article 1 shall declare goods and services eligible for VAT reduction according to Form No. 01 in Appendix IV issued with Decree 180 together with the VAT Declaration.
Decree 180 takes effect from January 1, 2025 to June 30, 2025.
During the implementation of tax policies, if taxpayers encounter difficulties or problems, please contact the tax authority for support via:
Propaganda Department - Taxpayer Support - Quang Nam Provincial Tax Department, phone number: 02353.852.536
Or contact the tax office directly for specific instructions.
Source: https://baoquangnam.vn/giam-thue-gia-tri-gia-tang-tu-ngay-1-1-2025-3146966.html
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