On October 29, 2021, the General Department of Taxation issued Official Letter 4153/TCT-CS on the implementation of Resolution 406/NQ-UBTVQH15.
For example, guiding the making of invoices for goods and services subject to value-added tax (VAT) reduction under Decree 92/2021/ND-CP is as follows:
Example 1:
Company A, which is an enterprise that calculates VAT by the deduction method, provides transportation services for Company B under the contract signed between the two parties, prices for tax calculation is 20 million VND.
Transportation services are subject to a tax rate of 10% and are eligible for a 30% reduction in the VAT rate from November 1, 2021, to the end of December 31, 2021. On November 15, 2021, Company A provides transport services to Company B; when it issues a VAT bill to Company B, Company A records the following:
At the column “Goods and services” write: “Transportation services”
Selling price recorded: 20,000,000 VND
VAT rate: "10% x 70%"
VAT amount recorded: “1,400,000 VND”
Total payment price: “21,400,000 VND”.
Based on the VAT invoice, Company A declares output VAT, and Company B declares and deducts VAT according to the reduced tax amount stated on the invoice of VND 1.4 million.
Example 2:
X Company, which calculates VAT according to the percentage method on revenue, provides lodging for customer Y in 02 days of November 2021 with a listed room price of VND 1.5 million/ day.
According to the provisions of Clause 2, Article 13 of Circular No. 219/2013/TT-BTC dated December 31, 2021, of the Ministry of Finance, lodging services apply VAT on turnover of 5%.
During the period of VAT reduction follow to Resolution No. 406/NQ-UBTVQH15 of the National Assembly Standing Committee, X Company calculates the reduced VAT amount and issues a sales invoice, and delivers to customer Y as follows:
At the column “Goods and services” write: “Accommodation services”
At the column “Into money” write: “3,000,000 VND” (1,500,000 VND x 2)
Calculation of reduced VAT: 3,000,000 x 5% x 30% = 45,000 VND
At the line "Adding money for goods and services" (which is the amount the buyer has to pay to the seller) write the amount that has been reduced by 30%, the percentage of revenue is "2,955,000 VND", and also note : “reduced by 45,000 VND, equivalent to 30% of the percentage of revenue according to Decree No. 406/NQ-UBTVQH15.
Collected from the source
Kim Anh