Consumers and businesses benefit from tax exemption and reduction policies

According to Decree No. 44/2023/ND-CP of the Government, from July 1 to December 31, 2023, value-added tax on goods and services will be reduced from 10% to 8% to support people in difficulty, promote production and business activities to recover and develop.

Although the state budget is affected, this tax support will help businesses, organizations and people overcome difficulties after the COVID-19 pandemic to recover and develop production and business, while stimulating consumption and investment, thereby contributing to the recovery of the country's economy after the pandemic and contributing to the implementation of social security.

Taxpayers submit tax declarations at the one-stop department of Kien Giang Provincial Tax Department.

With the reduction of input VAT, sellers have the opportunity to reduce the cost of products and services when the pressure on costs increases. For consumers, the tax reduction will directly reduce daily spending, contributing to curbing inflation, especially when the prices of some goods increase due to the impact of high gasoline and oil prices. The current general VAT is 10%, a 2% reduction will have an impact on all transactions in the market, affecting both buyers and sellers.

With the reduction of input VAT, sellers have the conditions to not have to increase the cost of products and services when the pressure on costs increases. The ability to consume products and services is also strongly supported and improved. For consumers, a group that is greatly affected when income and employment are reduced as at present, the tax reduction will help this group directly save 2% of average spending.

BUSINESSES ASK, TAX AUTHORITIES ANSWER

- Question: Ngoi Sao Cua Duong Joint Stock Company asks what is the value added tax rate for services?
- Answer: Pursuant to Article 1 and Clause 1, Article 2, Decree No. 44/2023/ND-CP, dated June 30, 2023 of the Government, in case customers bring wine and beer purchased from outside to the restaurant to drink, only require restaurant staff to serve and the restaurant collects a surcharge from service activities, from July 1, 2023 to December 31, 2023, the surcharge will be applied a value added tax rate of 8%. However, in this case, the restaurant must clearly state the name, address of the customer, the quantity, type of wine and beer that the customer brings himself, and the surcharge on the bill for the customer. In case the company's restaurant does not fully record or cannot prove that the wine and beer is brought by the customer, the surcharge will be applied a value added tax rate of 10%.
PROVINCIAL TAX DEPARTMENT

In order for the tax exemption and reduction policy to be put into practice, creating conditions for businesses and people to enjoy the tax exemption and reduction policy and bringing practical efficiency to the economy, the authorities should step up dissemination and direct their subordinate units to proactively propagate and disseminate to people and businesses to fully and promptly grasp the content of the value added tax reduction policy.

To ensure consumer rights, stores providing goods and services must reduce tax directly on the invoice when issuing invoices, avoiding ambiguity that makes consumers not know whether the product price has been reduced by value added tax or not.

Enterprises and business households must comply with reducing product prices corresponding to the reduction in value added tax, only then will the policy be truly effective.

In the context of complicated developments in the world and in the country, the economy and businesses will face more difficulties, creating great pressure on macroeconomic stability. Continuing to reduce the value added tax by 2% is necessary, in line with the current economic context to promptly support people and businesses, thereby promoting production and business activities to recover and develop soon to contribute back to the state budget as well as the economy.

Article and photos: VAN ANH

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