1. Notice 620/TB-TCT about application of value-added tax rate on e- invoices as provisions in decree no. 15/2022/ND-CP date january 28, 2022
Issued by: General Department of Taxation, effective date: December 22, 2022
Implementing regulations on reducing value-added tax rates according to Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies to support the Program on economic recovery and development. On January 28, 2022, the Government issued Decree No. 15/2022/ND-CP guiding the reduction of value-added tax for a number of groups of goods and services to be applied. from February 1, 2022 to the end of December 31, 2022.
Besides, the General Department of Taxation recommends:
• The General Department of Taxation proposes e-invoice service providers (organizations that receive, transmit and store e-invoice data and e-invoice solution providers) to research and upgrade solutions. e-invoices according to the provisions on value-added tax rates for goods and services according to the effect specified in Decree No. 15/2022/ND-CP.
• The General Department of Taxation requests organizations providing e-invoice services to notify their customers of the changes in order to comply with regulations.
2. Decree no 34/2022/ND-CP deferral of value-added tax, corporate income tax, personal income tax and land rents in 2022
Issued by: The Government, effective date: May 28, 2022
Specifically, The Government promulgates the Decree on extension of time limits for payment of value-added tax, enterprise income tax, personal income tax, and land rental in 2022.
• Entities eligible for deferral: Enterprises, organizations, households, household businesses carrying out manufacture in the following lines of business:
- Agriculture, forestry and aquaculture;
- Construct;
- Publishing activities; cinematographic activities; TV show production, audio recording and music publishing
- Extraction of crude oil and natural gas;
- Beverage production; printing, copying recordings; manufacture of coke, refined petroleum products; manufacture of chemicals and chemical products; manufacture of precast metal product (except machinery and equipment; manufacture of motorcycles; repair, maintenance and installation of machinery and equipment;
- Drainage and wastewater treatment.
• For value-added tax (except VAT on imported goods)
- The deadline for paying value-added tax of the tax period of May, June, August 2022 is December 20, 2022.
- The deadline for paying value added tax of the tax period of the second quarter of 2022 is December 31, 2022.
• For value-added tax, personal income tax of business households and individuals
Household businesses and individual businesses shall pay the deferred tax by December 30, 2022.
3. Official letter no. 4485/TCT-PC implementation of decree no. 118/2021/nđ-cp related to administrative violations on taxes and invoices
Issued by: General Department of Taxation, effective date: December 1, 2022
On December 1, 2022, the General Department of Taxation issued Official Letter No. 4485/TCT-PC regarding to administrative violations on taxes and invoices, based on Decree No. 118/2021/NĐ-CP detailing a number of articles and measures to implement the Law on Handling of Administrative Violations. Accordingly, there are some highlights as follows:
• Entities subject to administrative sanctions: Identifying dependent units of the enterprise, location of tax business directly declaring, paying taxes, using of invoices for tax and invoices administrative violations, as prescribed at Point a, Clause 2, Article 3 of the Decree No. 125/2020/NĐ-CP and Clause 3, Article 3 of Decree No. 118/2021/NĐ-CP.
• Regulations on the penalty frame: The minimum level of the penalty frame shall be applied in cases where there are 2 or more extenuating circumstances; the maximum level of the penalty frame shall be applied in cases with 2 or more aggravating circumstances, as prescribed at Point b, Clause 1, Article 9 of Decree No. 118/2021/NĐ-CP.
• Regulations on explanation: The explanation of tax administrative violations shall comply with the provisions of the Handling of Administrative Violations and Article 37 of Decree No. 125/2020/NĐ-CP, specifically:
- Taxpayers who request for explanation and under the circumstance of the case of explanation as prescribed in Article 61 of the Law on Handling of Administrative Violations (amended and supplemented in 2020), then the time limit for issuing the sanctioning decision is as prescribed at Point b, Clause 1 of the Law on Handling of Administrative Violations (amended and supplemented in 2020).
- Taxpayers make explanations according to the provisions of Point a, Clause 1, Article 37 of Decree No. 125/2020/ND-CP but do not fall into the case of explanations prescribed in Article 61 of the Law on Handling of Administrative Violations (amended and supplemented in 2020), the time limit for issuing sanctioning decisions shall comply with the provisions of Point a, Clause 1, Article 66 of the Law on Handling of Administrative Violations (amended and supplemented in 2020).
• Sample sanctioning offences:
- Use the form of offence issued attached with Decree No. 118/2021/NĐ-CP.
- In cases of tax administrative violations by electronic methods, use form No. 01A/BB issued attached with Decree No. 125/2020/NĐ-CP.
4. Official letter no. 4517/TCT-DNNCN on instructions for implementation of e-invoices with the tax authority’s code generated from cash register
Issued by: General Department of Taxation, effective date: December 05, 2022
Regarding to the implementation of electronic invoices with the tax authority's code generated from the cash register, the General Department of Taxation has the following guidelines:
• Conditions to apply e-invoice from cash register:
- Transactions can be performed with the tax authority by electronic means (such as: having a digital signature and registering to be granted an electronic tax transaction account by the tax authority);
- Having information technology infrastructure (such as: computers and devices with internet connection; email);
- Using electronic invoicing software;
- Changing the electronic invoice software to meet the invoice data format standards as prescribed in the Decision No. 1510/QĐ-TCT dated September 21, 2022 by the General Director of Taxation Department.
• Rollout roadmap:
- Phase 1: From December 15, 2022 to the end of March, the Tax Department focuseed on rolling out 100% of enterprises and household businesses in the group that can roll out e-invoices from cash registers according to the list of reports to the General Department of Taxation (according to Official Letter No. 3169/TCT-DNNCN dated August 26, 2022 of the General Department of Taxation sent to 06 provinces and cities on rollout of e-invoice phase 1 and Official Letter No. 3170/TCT-DNNCN dated 26 August 2022 of the General Department of Taxation sent to 57 provinces and cities on rollout of e-invoice phase 2).
- The following phases: from April 1, 2023, the Tax Department will proactively make a list and roll out the program in the province for the remaining enterprises and household businesses and report the results to the General Department of Taxation.
5. Official letter no. 5305/TCHQ-TXNK bank coordinating cooperation with gso and implemented 24/7 e-tax payment
Issued by: General Department of Customs, effective date: December 8, 2022
Pursuant to the agreement on cooperation in organizing state budget collection between the General Department of Customs and KEB HANA Bank - Ho Chi Minh City branch and KEB HANA Bank - Hanoi branch dated December 6, 2022 and the results 24/7 acceptance and testing of the Customs system, the General Department of Customs has the following comments:
• Adding KEB HANA - HCM Bank and KEB HANA - Hanoi Bank to the list of banks implementing electronic tax payment and customs clearance 24/7.
Official time for electronic tax payment and customs clearance 24/7 from December 9, 2022.
• Information connected to the system of the General Department of Customs:
- For KEB HANA HCM Bank and KEB HANA Hanoi Bank, the address to connect to the Electronic Payment Gateway and 24/7 Clearance: http://192.168.1.2/TTDT31/TTDTPortal.asmx
For taxpayers, the address to connect to the Electronic Payment Gateway and Customs Clearance
6. Official letter no. 4943/TCHQ-TXNK providing guidance about tax policy for goods stored in bonded warehouses must be destroyed
Issued by: General Department of Customs, effective date: November 21, 2022
Regarding problems about tax policy for goods stored in bonded warehouses that must be destroyed, the General Department of Customs issued Official Letter No. 4943/TCHQ-TXNK guiding as follows:
Legal basis:
Goods are not subject to import and export tax: Pursuant to Clause 4, Article 2, the Law on Import Tax and Export Tax No. 107/2016/QH13 stipulates “The goods do not incur export and import duties include goods exported from a free trade zone to abroad; goods imported from abroad to a free trade zone and used within such free trade zone; goods transported from one free trade zone to another.”
Free trade zone: Pursuant to Clause 1, Article 4 of the Law on Import Tax and Export Tax No. 107/2016/QH13 stipulates “Free trade zone means an economic zone located within Vietnam’s territory, established in accordance with law, having a definite geographic boundary, and separated from the outer area by hard fences in order to facilitate customs inspection and customs control by the customs authority and relevant agencies with regard to exports and imports, inbound and outbound vehicles and passengers; the trading relationship between the free trade zone and the outside area is consider exportation and importation.”
Customms – controlled area: Pursuant to Clause 4, Article 3, Law on Foreign Trade Management No. 05/2017/QH14 stipulates “customs-controlled area” means a geological area in the territory of Vietnam that is established in accordance with regulations of Vietnam law and international treaties to which the Socialist Republic of Vietnam is a signatory and the exchange of products between this area and the remaining territory of Vietnam or foreign countries are considered as import and export activities.”
Goods are not subject to VAT: Pursuant to Clause 20, Article 4, Circular No. 219/2013/TT-BTC stipulates “The goods and services traded between a foreign party and a free trade zone, or among free trade zones.”
Thus, if the bonded warehouse meets the above-said grounds, the goods sent from abroad to the bonded warehouse shall not be subject to import tax or VAT. Goods that are in the process of being stored in a bonded warehouse, if an enterprise destroys it in a bonded warehouse and meets the conditions for destruction as prescribed by law, it is not required to declare and pay import tax and VAT.
