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Official letter 2688/BTC-TCT of the Ministry of Finance

PROVIDES GUIDANCE ON TIME TO ISSUE INVOICE FOR VALUE ADDED TAX (“VAT) REDUCTON UNDER DECREE 15/2021/ND-CP


On January 28, 2022, the Government issued Decree No. 15/2022/ND-CP stipulating the policy of tax exemption and reduction according to Resolution No. 43/2022/QH15 of the National Assembly about fiscal and monetary policies for supporting socio-economic recovery and development program. This is a supportive policy for enterprises. However, during the implementation the regulations, businesses often encounter problems, especially the struggle in determining VAT invoices issuance time, or whether at this time of providing services, the company is eligible for VAT reduction or not.


Therefore, to support companies to comply with the regulations under Decree 15/2022/ND-CP, on March 23, 2022, the Ministry of Finance issued Official Letter No. 2688/BTC-TCT sending to the General Department of Taxation in provinces and municipalities. This document provides guidance on invoice issuance for goods and services in order to reduce VAT rate to 8%.


Accordingly, time to issue invoice is regulated as below:

- If companies signed contracts to provide services having cash collection and invoices issued before February 1, 2022 under tax rate of 10%, the services shall be completed in between the period from February 1, 2022 to December 31, 2022:

  • The amount invoiced before February 1, 2022 is not applicable for VAT reduction;

  • The remaining unpaid amount, which invoiced from February 1, 2022 to December 31, 2022, is applicable for VAT reduction

- If companies provide goods and services with the tax rate of 10% in January 2022, but the companies had not issued invoices until February 2022, the Companies shall fall in wrong invoice inssuace date and not applicable for VAT reduction;


- For invoices issued before February 1, 2022 with the VAT rate of 10%, but after February 1, 2022 need to be revised, the revised invoices, the sales return invoices are issued under VAT rate of 10%;


- For activities of providing specific goods and services such as electricity supply, companies are entitled to VAT reduction according to regulations for invoices issued from February 1, 2022 to December 31, 2022.


Should you have any concerns during the process of implementing the regulations, please contact us.


Official letter 2688/BTC-TCT
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