A few adjustments related to VAT rates in 2023. Together with Pham Consult updated some information related to VAT rates.
1. Principles of making, managing, and using invoices and vouchers
Pursuant to Clause 1, Article 4 of Decree 123/2020/ND-CP has the following provisions:
When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases where goods and services are used for promotion, advertising, samples; exchanging, paying for employees’ wages, and for internal consumption (except for goods circulating internally to continue the production process); exporting goods in the form of loans, giving borrowing or returning goods) and must fully write the contents as prescribed in Article 10 of this Decree. In the case of using e-invoices, it must follow the standard data format of the tax authorities as prescribed in Article 12.of his Decree.
Accordingly, when exporting goods in the form of goods return, the buyer is responsible for issuing an invoice to return the goods.
2. VAT on return invoices for goods purchased and sold in 2022
Pursuant to Article 1 of Decree 15/2022/ND-CP stipulates:
According to the above regulations, the value-added tax reduction applies only to groups of goods that are applying the value-added tax rate of 10%. However, except for the following groups of goods:
– Telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products.
– Products and services subject to excise tax.
– Information technology in accordance with the law on information technology.
At the same time, in Clause 2, Article 1 of Decree 15/2022/ND-CP, the tax rate to be reduced is 8%.
3. The time limit for application of VAT rate of 8%
Pursuant to Clause 1, Article 3 of Decree 15/2022/ND-CP, the time limit for applying the 8% VAT rate is as follows:
Implementation effect and organization of implementation
Article 1 of this Decree applies from February 1, 2022 to the end of December 31, 2022.
Article 2 of this Decree applies to the corporate income tax period of 2022.
Based on the above provisions, from February 1, 2022 to the end of December 31, 2022, VAT on some goods specified in Clause 1, Article 1 of Decree 15/2022/ND-CP is 8%. In the event that the government does not issue a new decision on value-added tax reduction, from January 1, 2023, goods that are enjoying the value-added tax reduction policy will return to apply the tax rate. 10% VAT before.
Regarding the VAT rate of the return invoice, for goods purchased and sold in 2022 but returned by 2023, refer to the instructions in Official Dispatch 313/CTTPHCM-TTHT in 2023. Purchased from February 2022 to December 2022 (goods and services subject to VAT reduction, applicable VAT rate is 8%), by 2023, if the goods are returned, the invoice will be returned. is made at the VAT rate of 8%.
4. Goods purchase and sale invoices are made when 8% VAT is applied but have not yet been collected, will a new invoice be issued in 2023?
Pursuant to Resolution 43/2022/QH15 and Decree 15/2022/ND-CP, the reduction of value-added tax from 10% to 8% will only apply in 2022 and specifically until the end of December 31. 2022.
For goods sale and purchase invoices that are made when VAT 8% is applied but have not yet been collected, the provisions of Clause 1, Article 9 of Decree 123/2020/ND-CP and Clause 1, Article 8 of Circular 219/ 2013/TT-BTC on the time of invoice and value added tax is recorded as follows:
Accordingly, the time to determine VAT is the time when the ownership or the right to use the goods is transferred to the buyer, regardless of whether the money has been collected or not, regardless of the time of the invoice.
Thus, for the case where the goods sale and purchase invoice is made when the 8% VAT is applied but the money has not been collected, the following VAT shall be applied:
+ In case the goods sale and purchase invoice is made before December 31, 2022 but the buyer and seller have not transferred the ownership or the right to use the goods, whether or not the money has been collected, it will not be accepted. VAT rate of 8% is applied and must be invoiced at the time of delivery of goods to the buyer.
+ In case the two parties have transferred the ownership or the right to use the goods before December 31, 2022, it is considered the time when VAT has been determined, so the VAT rate will be applied. 8%.
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