Instructions for making VAT invoices for good and services eligible for VAT reduction

On June 20, 2022, the Government issued Decree 41/2022/ND-CP guiding the VAT reduction policy.

Accordingly, enterprises may write on the same value-added invoice goods and services with the different tax rate but must clearly state the tax rate each type of goods and services as prescribed.

In the case that from February 1, 2022 to June 20, 2022, business establishments that have made invoices according to the provisions of this Decree are still entitled to VAT reduction and do not have to adjust their invoices, and will not be subject for tax and invoice violations.

For business establishments that calculate VAT by the deduction method:

• According to Point a, chause 3, Article 1 of Decree 15/2022/ND-CP, when making a value-added invoice for the provision of goods and services subject to VAT reduction, at the VAT rate line write ” 8%”; value added tax; the total amount to be paid by the buyer.
• Based on VAT invoices, business establishments selling goods and services shall declare output VAT, and business establishments purchasing goods and services shall declare and deduct input VAT according to the reduced tax amount stated on the VAT invoices.

For business establishments (including business shareholds and indivisuals) that calculate VAT according to the percentage method on revenue:

At Point b, Clause 3, Article 1 of Decree 15/2022/ND-CP, it is clear that when making sales invoices for the provision of goods and services subject to VAT reduction:

•  In the column “Total money” write all the money for goods and services before reducing;
• In the line “Add money for goods and services” recorded by the number that has reduced 20% of the percentage of revenue, and at the same time note: “reduced… (amount) equivalent to 20% of the percentage rate for calculating VATaccording to Resolution No. 43/2022/QH15”.