GUIDELINES FOR INVOICING FOR VAT REDUCTION
The Decree No. 41/2022/ND-CP amending and supplementing a number of articles of the Government's Decree No. 123/2020/ND-CP dated October 19, 2020, on invoices and documents and the Government's Decree No. 15/2022/ND-CP dated January 28, 2022, providing tax exemption and reduction policies under the National Assembly’s Resolution No. 43/2022/QH15, on fiscal and monetary policies in support of the socio-economic recovery and development program is issued on June 20, 2022 by the Government.
Accordingly, business establishments calculating VAT by the credit method that are entitled to the VAT rate of 8% for the prescribed goods and services shall, when providing services subject to different tax rates, write the tax rate applicable to each good or service in the VAT invoice in accordance with regulations.
Business establishments (including also business households and individuals) calculating VAT based on percentage of their turnover entitled to a 20%-reduction of the percentage used to calculate VAT that issue invoices for goods and services eligible for VAT reduction shall, when selling goods or providing services, write the reduced amount in the sale invoice in accordance with regulations.
According to current regulations, business establishments must make a separate invoice for the goods or services eligible for VAT reduction. In case of failure to do so, they shall not be entitled to VAT reduction for such goods or services.
This Decree takes effect on the date of its signing.
