Many new and important policies will be officially applied from November 2021, including the value-added tax (VAT) policy.
Reduced VAT on many goods and services
As part of a series of policies to alleviate difficulties caused by the Covid-19 pandemic, the policy of reducing many taxes has been approved by the National Assembly Standing Committee in Resolution 406/NQ-UBTVQH15.
Clause 3, Article 1 of this Resolution clearly states the reduction of VAT on the following goods and services:
(i) Transport services (rail transport, water transport, air transport, other road transport); accommodation services; Food Service; services of travel agencies, tour operators, and support services, related to the promotion and organization of tours;
(ii) Publishing products and services; cinematographic services, television program production, sound recording and music publishing; works of art and services for composing, art, and entertainment, libraries, archives, museums, and other cultural activities; sports, entertainment, and entertainment services (excluding publishing software and goods and services produced and traded in the form of online).
Effective period: From November 1, 2021, to December 31, 2021.
Tax reduction:
– Enterprises and organizations that calculate VAT by the credit method of production and trading of goods and services mentioned above are entitled to a reduction of 30% of the VAT rate;
– Enterprises and organizations that calculate VAT according to the percentage method on the turnover of production and trading of goods and services mentioned above are entitled to a 30% reduction of the percentage rate for VAT calculation.
Consumers benefit
VAT is a type of tax levied directly on goods and services that people buy and use. So, with the reduction of VAT, the biggest beneficiary is the consumer.
According to the provisions of Clause 3, Article 1 of Resolution 406 above, transportation services, food services – the two most popular and most used services – are also on the list of services eligible for VAT reduction from November 1, 2021.
Currently, consumers when using the above services, specifically when going to eat at restaurants, take a taxi or take a plane… in addition to paying for the service, they also have to pay an additional VAT of 10%. However, from November 1, 2021, when using the services mentioned above, consumers will be deducted 30% VAT.
It means, before, when going to a restaurant with an invoice of 1,000,000 VND, accompanied by 10% VAT, consumers have to pay 1,100,000 VND, from November 1, 2021, consumers only have to pay about 1,070,000 VND.
Similar to the case of booking a hotel, buying a tour, or other sports, entertainment, and entertainment services, consumers will also receive a 30% reduction in VAT.
The tax reduction policy specified in Resolution 406 directly affects consumers, the State share with the people in the face of difficulties caused by the epidemic, and at the same time contribute to stimulating consumer demand to restore the economy after the epidemic.
Collected from the source