Regardless of the tax calculation method of the business establishment
The Ministry of Finance said that Decree No. 15/2022/ND-CP guides the implementation of value-added tax (VAT) reduction. Accordingly, on determining goods and services that are subject to the 10% VAT rate and are not eligible for VAT reduction, for the convenience of organizations, individuals and tax administration agencies to apply, and at the same time ensuring the consistency and synchronization with the current specialized legal system, the determination of goods and services that are not eligible for VAT reduction shall be made according to the Appendixes issued with the Decree.
Regarding the subjects of application, Decree No. 15/2022/ND-CP stipulates the application of VAT reduction to organizations and individuals producing and trading goods and services subject to 10% VAT, regardless of the calculation method. Business tax is the deduction method or percentage method of sales.
Regarding invoicing, to ensure tax reduction in accordance with the provisions of Resolution No. 43/2022/QH15 and the tax reduction policy to the right beneficiaries (buyers of goods and services), ensure transparency, avoid Taking advantage, Decree No. 15/2022/ND-CP specifically stipulates the issue of invoices. Accordingly, for business establishments applying the tax credit method, the determination of a 2% reduction in the VAT rate shall be made directly on the VAT invoice when the business establishment provides goods and services.
For business establishments (including business households, business individuals) apply the percentage method on revenue using sales invoices, on sales invoices without VAT criteria. Therefore, Decree No. 15/2022/ND-CP stipulates that business establishments shall reduce 20% of the percentage rate to calculate VAT at the line “Addition of goods and services” and note on the sales invoice. row.
Business establishments must make separate invoices for goods and services eligible for VAT reduction. In case a business establishment does not issue a separate invoice for goods and services eligible for VAT reduction, it is not entitled to VAT reduction.
In case the business establishment has issued an invoice and declared at the tax rate or percentage for calculating VAT that has not been reduced as prescribed in this Decree, the seller and the buyer must make a record or there is a written agreement specifying the error, at the same time the seller makes an invoice to correct the error and delivers the adjusted invoice to the buyer. Based on the adjusted invoice, the seller declares and adjusts the output tax, and the buyer declares the adjustment of input tax (if any).
For goods and service business establishments eligible for VAT reduction, which have issued ordered invoices printed in the form of pre-printed tickets with the unused face value (if any) and have a need to continue In case of use, business establishments shall make stamps according to the price reduced by 2% of VAT rate or the price reduced by 20% of the percentage rate next to the pre-printed price criteria for continued use.
Deducting donations and sponsorships for the prevention and control of the Covid-19 epidemic when calculating CIT
Decree No. 15/2022/ND-CP also specifically guides the implementation of deductible expenses when determining corporate income taxable income (CIT) for support and sponsorship expenditures of enterprises and organizations organization for COVID-19 prevention and control activities in Vietnam.
Accordingly, in order to remove obstacles and facilitate implementation, while ensuring management and avoiding abuse, Decree No. 15/2022/ND-CP stipulates that businesses and organizations are taxpayers CIT according to the provisions of the Law on CIT, is included in the deductible expenses when determining the taxable income of the CIT period of 2022, for expenses to support and sponsor in cash and in kind for prevention activities. , combating the COVID-19 epidemic in Vietnam through units receiving support and sponsorship.
In case the parent company receives support and sponsorship from member units to focus on conducting support and sponsorship activities, the parent company and member units are included in deductible expenses unless determine the taxable income corresponding to the support and sponsorship of the parent company and each member unit.
The parent company must have a record or a document certifying the expenditure of support and sponsorship mentioned in Clause 4 of this Article. The member unit must have legal invoices and documents in accordance with the law and have a written certification of the parent company about the support and sponsorship of each member unit.
Units receiving support and funding include: Vietnam Fatherland Front Committees at all levels; health facilities; armed forces units; units and organizations assigned by competent state agencies to serve as concentrated isolation establishments; educational institutions; Press Agency; Ministries, ministerial-level agencies, agencies attached to the Government; organize the party, youth union, trade union and union of Vietnamese women at all levels at central and local levels; local government agencies and units at all levels have the function of mobilizing funding; Funds for COVID-19 prevention and control at all levels; Fund for vaccines against COVID-19; National humanitarian portal; Charity and humanitarian funds and organizations with the function of mobilizing funding are established and operate in accordance with law.
Dossier to determine expenditures for support and sponsorship includes: Minutes of confirmation of support or sponsorship according to the form promulgated together with this Decree or a document or document (in paper or electronic form) certifying the expenditure. supporting and sponsoring with the signature and seal of the representative of the business or organization being the sponsoring or sponsoring unit and the representative of the receiving or sponsoring unit; accompanied by legal invoices and documents as prescribed by law of donations or sponsorships in cash or in kind.
In order to create favorable conditions for businesses and people to understand and soon benefit from the tax reduction policy, facilitate the issuance of invoices as well as tax declaration and payment, and uniform implementation nationwide, Decree No. This Decree takes effect from February 1, 2022. The VAT reduction regulations apply from February 1, 2022 to the end of December 31, 2022; stipulations on expenses to be calculated when calculating CIT applicable to the CIT tax period of 2022.
Decree No. 15/2022/ND-CP clearly states that ministries, according to their functions and tasks, and the People’s Committees of provinces and centrally run cities, direct relevant agencies to propagate, guide and inspect inspect and supervise so that consumers understand and benefit from the reduction of VAT. In which, focusing on solutions to stabilize the supply and demand of goods and services subject to VAT reduction in order to stabilize the market price level (price without VAT) from February 1, 2022 to the end of the day. December 31, 2022 is basically stable compared to the time before February 1, 2022.
Le Kim Lien