Headlines 26/03/2022 09:17 SA

Instructions on timing of invoice issuance for entitlement to VAT reduction to 8% are now publicly known

Dương Phạm

On March 23, 2022, the Ministry of Finance issues the Official Dispatch No. 2688/BTC-TCT regarding value-added tax prescribed in the Government’s Decree No. 15/2022/ND-CP.

According to this document, the Ministry of Finance provides instructions on timing of invoice issuance for entitlement to the policy for 10%-VAT reduction to 8% which is applied in the following circumstances:

- If business entities signing contracts for provision of profitable services have invoiced these services at the time of collection of service charges at 10% rate before February 1, 2022, and their provision of these services is completed during the period from February 1, 2022 to end of December 31, 2022:

+ The amount recorded in the invoice issued before February 1, 2022 will not be eligible for this VAT relief policy.

+ The outstanding amount recorded in the invoice issued within the period from February 1, 2022 to end of December 31, 2022 will be eligible for this VAT relief policy.

- If business entities subject to 10% VAT in January 2022 do not issue their invoices until February 2022, they will be considered to miss the prescribed timing for invoice issuance, thus not being entitled to the VAT relief policy.

- For any invoice issued before February 1, 2022 at 10% rate, if there is any defect found in the invoice after February 1, 2022, the new invoice stating correction of this defective invoice and the goods return invoice will be issued at the VAT rate of 10%.  

- For provision of special goods and services like electricity, business entities will be entitled to VAT reduction as per laws and regulations if invoices are issued within the period from February 1, 2022 to end of December 31, 2022.

The Official Dispatch No. 2688/BTC-TCT is issued March 23, 2022.
>> CLICK HERE TO READ THE ARTICLE IN VIETNAMESE

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