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Tax news - March, 2022

This is the collection of the Decrees, Decisions, Circulars, and Official Letters which take effect from March, 2022 including Decree 21/2022/NĐ-CP; Decree 10/2022/NĐ-CP; Decision 206/QD-BTC; CIRCULAR 03/2022/TT-BCT;...

Issued by: Government


Effective date: 10/03/2022


DECREE 21/2022/NĐ-CP ON AMENDMENTS TO THE GOVERNMENT’S DECREE NO. 57/2019/ND-CP DATED JUNE 26, 2019 ON PREFERENTIAL EXPORT TARIFF SCHEDULE AND SPECIAL PREFERENTIAL IMPORT TARIFF SCHEDULE UNDER THE COMPREHENSIVE AND PROGRESSIVE AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP IN THE 2019 – 2022 PERIOD.


As of September 19, 2021, the CPTPP Agreement officially took effect for the Republic of Peru, so Decree 21/2022/ND-CP (“Decree 21”) was issued on March 10, 2022 to implement the CPTPP Agreement for the period of 2019-2022 with additional provisions applicable to Peru. Accordingly,

  • Supplementing regulations on preferential export tax rates for goods exported from Vietnam to Peru and vice versa: The Republic of Peru applies the tax rates specified in Appendix I, in the column with the symbol “IV” from September 19, 2021 to December 31, 2021, in the column with the symbol “V” from January 1, 2022 to December 31, 2022.

  • Supplementing regulations on special preferential import tax rates applicable to goods exported from Vietnam to Peru and vice versa: The Republic of Peru applies the tax rates specified in Appendix II, at column with symbol "IV" from September 19, 2021 to December 31, 2021, column with symbol "V" from January 1, 2022 to December 31, 2022.

  • Supplement regulations on conditions for applying preferential export tax rates and special preferential import taxes to apply to goods exported from Vietnam to Peru and vice versa.

  • For customs declarations of export and import goods between Vietnam and Peru registered from September 19, 2021 to before March 10, 2022, if all conditions are met to enjoy preferential export tax or special preferential import tax specified in Decree 57 and Decree 21 and have paid tax at a higher tax rate, the customs authority shall handle the overpaid tax according to the provisions of the law on tax administration.


Issued by: Government


Effective date: 01/03/2022


DECREE 10/2022/NĐ-CP ON REGISTRATION FEES (FREE REGISTRATION FEES FOR ELECTRIC CAR FOR 3 YEARS FROM 01/03/2022)


On January 15, 2022, the Government issued Decree 10/2022/ND-CP on registration fees. Specifically, the registration fee rates for electric cars running on batteries is as follows:

  • Within 3 years from March 1, 2022 (from the date this Decree 10/2022/ND-CP comes into force): the first-time registration fee is 0%.

  • Within the next 2 years: the first-time registration fee is 50% of the fee rate for petrol and oil cars with the same quantity of seats.

  • In addition, the registration fee rates will remain the same for some of the following types of properties:

- Houses, land: 0,5%.

- Hunting guns; guns used for training or sports: 2%.

- Ships, including barges, canoes, tugs, pushers, submarines, submersibles; boats, including yachts; aircraft: 1%.

- Motorcycles: 2%.

- Motor vehicles, trailers or semi-trailers towed by motor vehicles, or equivalences: 2%.


Issued by: Minister of Finance


Effective date: 24/02/2022


DECISION 206/QD-BTC ON IMPLEMENTATION OF THE APPLICATION OF ELECTRONIC INVOICES IN 57 PROVINCES AND MUNICIPALITIES


In Decision 206/QD-BTC, the Ministry of Finance listed out a list of provinces and municipalities that will have to apply e-invoices as well as the core regulations that need to be applied in the process of implementing this decision.

  • Accordingly, from April 2022, electronic invoices will be applied to enterprises, economic organizations and business households in 57 provinces and municipalities according to the list in the Appendix of this decision (except for some ineligible cases).

  • The regulations in the Tax Administration Law, Decree No. 123/2020/ND-CP and Circular No. 78/2021/TT-BTC must be strictly applied in the process of implementing e-invoices in 57 provinces and municipalities.

  • In addition, the Tax Department of 57 provinces and municipalities is responsible for reporting to the People's Committee of the provinces and municipalities to establish the Steering Committee for the application of e-invoices in the locality; Actively coordinate with local media units to propagate the implementation; Reviewing and classifying the taxpayers who are users of e-invoices according to regulations to inform promptly about implementation contents; Notifying this regulation to organizations providing e-invoice services so that they can prepare infrastructure during the implementation of this decision; Training for taxpayers and tax officers on mandatory regulations to ensure quality when implementing decisions; Establishing and announcing hotlines at Tax Departments to quickly grasp and handle arising problems.

Issued by: Minister of Industry and Trade


Effective date: 15/03/2022


CIRCULAR 03/2022/TT-BCT ON TEMPORARILY SUSPENDING THE BUSINESS FOR TEMPORARY IMPORTING AND RE-EXPORTING MEDICAL MASKS, MEDICAL GLOVES AND PROTECTIVE SUIT.


On January 28, 2022, The Minister of Industry and Trade promulgated Circular 03/2022/TT-BCT regarding the temporarily suspending the business for temporary importing and re-exporting medical masks, medical gloves and protective suit.

Accordingly, temporarily suspending the business for temporary importing and re-exporting medical masks, medical gloves and protective suit in the List of the Appendix issued together with Circular 03/2022/TT-BCT.


For consignments of medical masks, medical gloves and protective suit, which have passed the customs clearance for temporary importing from 01/01/2022 to before 15/03/2022, shall continue to re-export according to the provisions of Decree 69/2018/ND-CP.


The list of medical masks, medical gloves and protective suit issued together with Circular 03/2022/TT-BCT includes:

  • Chapter 39: Code 3926.20.90 (Description: Medical gloves).

  • Chapter 40:

- Code: 4015.11.00 (Description: Medical gloves).

- Code: 4015.19.10 (Description: Medical gloves).

  • Chapter 62: Code 6210.10.90 (Description: Protective suit, including: clothes, glasses, medical masks, helmets, gloves, shoes).

  • Chapter 63:

- Code: 6307.90.40 (Description: Medical masks).

- Code: 6307.90.90 (Description: Medical masks).

Issued by: General Department of Taxation


Effective date: 21/03/2022


OFFICIAL LETTER NO. 9262/CTHN-TTHT OF HANOI GENERAL DEPARTMENT OF TAXATION PROVIDES GUIDANCES ON VALUE ADDED TAX REDUCTION UNDER DECREE 15/2021/ND-CP FOR REGISTRATION SERVICES


In order to support companies to comply with the regulations on industries and fields that are eligible for VAT reduction under Decree No. 15/2022/ND-CP, on March 21, 2022, the General Department of Taxation issued Official Letter No. 9262/CTHN-TTHT guiding Vietnam Register Training Center (“VRTC”) on the reduction of VAT for registration services.


Accordingly, based on the provisions on VAT exemption and reduction in Article 1 of Decree 15/2022/ND-CP and regulations on VAT taxable prices in Article 7 of Circular 219/2013/TT-BTC dated 31 December 2013 of the Ministry of Finance:

  • In case the VRTC calculates VAT by the credit method, providing registration service that is applying the 10% VAT rate and is not on the list of goods and services specified in Appendix I, II, III issued together with Decree No. 15/2022/ND-CP, the registration service is applied the VAT rate of 8% as prescribed in Clause 2, Article 1 of Decree No. 15/2022/ND-CP of the Government from February 1, 2022 to the end of February 1, 2022. December 31, 2022.

  • In case the price of the registration service includes VAT at the VAT rate of 10%, the price exclusive of VAT is determined as follows:

Price exclusice VAT = (Selling price)/(1+10%)


Issued by: Ministry of Finance


Effective date: 23/03/2022


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


In order 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 follows:

  • 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 goods 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.


Issued by: General Department of Customs


Effective date: 25/02/2022


OFFICIAL LETTER 642/TCHQ-TXNK ISSUED BY GENERAL DEPARTMENT OF CUSTOMS DATED FEBRUARY 25, 2022 GUIDING ON IMPLEMENTATION OF VAT RATES DECLARATION, PRODUCT’S NAME DETERMINATION AND HS CODE APPLICATION OF IMPORTED GOODS WHICH ARE NOT ELIGIBLE FOR TAX REDUCTION ACCORDING TO DECREE 15/2022/ND-CP.


Recently, the General Department of Customs has received opinions and official letters from businesses requesting guidelines on declaring value-added tax (VAT) rates, determining product’s name and applying HS codes of imported goods which are not eligible for VAT reduction. On February 25, 2022, the General Department of Customs issued Official Letter 642/TCHQ-TXNK to address enterprises’ concerns.


Accordingly, the official guides that imported goods which are not eligible for VAT reduction include:

  • Goods with the product’s name stated in column 8 "Product’s name" and a description of the product's content in column 9 "Description" (in case there is no description of the content in column 9, the product’s name mentioned in column 8 shall be applied) of Appendix I, part A of Appendix III; or

  • Goods in column 3 "Goods" of part B Appendix III; or

  • Imported goods subject to excise tax mentioned in Appendix II issued together with Decree 15/2022/ND-CP.

Imported goods mentioned in Appendices I, II, III issued together with Decree 15/2022/ND-CP are not subject to VAT or subject to 5% VAT according to the provisions of the Law on VAT shall comply with the provisions of the Law on VAT.


Issued by: Hanoi Department of Taxation


Effective date: 11/03/2022


OFFICIAL LETTER 8000/CTHN-TTHT ON VAT REDUCTION ACCORDING TO DECREE NO. 15/2022/ND-CP.


In order to deal with the problems of Official Letter No. 27/CV-CRD of Construction Investment and Rural Development Joint Stock Company dated February 21, 2022, Hanoi Department of Taxation issued Official Letter 8000/CTHN-TTHT. Accordingly, Official Letter has answered the following problems:

  • In case the Company calculates value-added tax by the deduction method, construction and installation activities are subject to the 10% VAT rate and are not on the list of goods and services stated in the Appendix I, II, III promulgated under the Decree No. 15/2022/ND-CP dated January 28, 2022 of the Government, shall apply the VAT rate of 8% as prescribed in Clause 2, Article 1 of Decree No. 15. 2022/ND-CP dated January 28, 2022 of the Government from 01/02/2022 to the end of 31/12/2022.

  • Time to determine VAT for construction and installation activities shall comply with the provisions of Clause 5, Article 8 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance. For the construction price, work item or parts of pre-acceptance testing work, shall be handed over before 1/2/2022 or after 31/12/2022, VAT reduction is not applied according to the provisions of Decree No. 15/2022/ND-CP dated January 28, 2022 of the Government (including the case invoices are not issued until February 2022).

  • The signing of Contract, Appendix of Contract are an agreement between the two parties, not under the authorization of Tax Department.

Issued by: Hanoi Department of Taxation


Effective date: 02/03/2022


OFFICIAL LETTER 6778/CTHN-TTHT ON VAT REDUCTION ACCORDING TO DECREE NO. 15/2022/ND-CP.


In order to deal with the problems of Official Letter No. 01/22-CV of Wellbe Vietnam Co., Ltd dated February 15, 2022, Hanoi Department of Taxation issued Official Letter No. 6778/CTHN-TTHT. Accordingly, Official Letter has answered the following problems:

  • In case Wellbe Vietnam Co., Ltd provides services to customers with collection of money before 1/2/2022, when collecting money, the Company has issued an invoice at the 10% VAT rate but until 01/3/2022, the customer terminated using the service. And the Company has to refund the unused service fee, when making an adjustment invoice, the Company shall apply the corresponding tax rate at the time of collecting money.

  • The case Company provides service entitled to VAT reduction from 01/02/2022 to the end of 31/12/2022 according to the provisions of Decree No. 15/2022/ND-CP dated January 28, 2022 of the Government and issues invoice according to the provisions of Article 9 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government at the tax rate of 8%. After 31/12/2022, the Company adjusts the above-mentioned invoice, the adjusted invoice shall be applied the VAT rate of 8%.


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