Instructions for making invoices to reduce 2% VAT in 2022

Specific invoice timing

On March 23, 2022, the Ministry of Finance issued Official Dispatch No. 2688/BTC-TCT guiding the Tax Departments of provinces and cities on VAT in Decree No. 15/2022/ND-CP, including instructions on the time of invoice issuance.

On September 22, 2022, the General Department of Taxation issued Official Dispatch No. 3522/TCT-CS in response to the Ho Chi Minh City Tax Department and sent it to the Tax Departments of provinces and cities, including instructions on VAT reduction for cases where the time of invoice issuance is special.

"The Tax Departments of provinces and centrally-run cities are requested to study the content and guide units to implement according to the above guidance documents of the Ministry of Finance and the General Department of Taxation," Official Dispatch 2121/TCT-CS stated.

Invoicing in some cases

Also in Official Dispatch 2121/TCT-CS, the General Department of Taxation provided guidance on invoicing in some cases.

In case goods and services are subject to VAT reduction according to Decree 15/2022/ND-CP, after December 31, 2022, if errors are discovered, an adjustment or replacement invoice must be issued without affecting the goods price and VAT payable or adjusting the taxable price, the adjusted or replacement invoice shall apply a VAT rate of 8%.

In case of errors in the quantity of goods leading to errors in the price of goods and VAT, the adjusted or replaced invoice shall apply the VAT rate prescribed at the time of making the adjusted or replaced invoice.

In case the goods were purchased before January 1, 2023 with a tax rate of 8%, after December 31, 2022 the buyer returns the goods due to incorrect specifications or quality, the seller shall issue a return invoice to adjust or replace the invoice issued with a VAT rate of 8%, the seller and the buyer shall have an agreement clearly stating the returned goods.

In case a business establishment applies a trade discount to customers and for trade discounts on goods with a VAT reduction rate of 8% sold in 2022 but issues invoices showing the trade discount content from January 1, 2023:

In case the discount amount is established on the last purchase or the next period after December 31, 2022, the discount amount of the sold goods will be adjusted in the content of taxable price and tax rate according to the current law at the time of invoice creation.

In case the discount amount is established when the discount program (period) ends after December 31, 2022, the seller shall issue an adjustment invoice and apply the VAT rate of 8% at the time of sale.

In case a business establishment sells goods and provides services (subject to VAT reduction according to Decree 15/2022/ND-CP), but after December 31, 2022, the business establishment issues invoices for revenue from the sale of goods and services arising from February 1, 2022 to December 31, 2022 and construction and installation activities have a time for acceptance and handover of works, work items, completed construction and installation volume, regardless of whether the money has been collected or not, determined from February 1, 2022 to December 31, 2022, but after December 31, 2022, the business establishment issues invoices for revenue from construction and installation that has been accepted and handed over, it is a case of issuing invoices at the wrong time, VAT reduction according to Decree 15/2022/ND-CP and will be punished. administrative violation handling for the act of issuing invoices at the wrong time.

Wisdom

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