On July 1, the General Department of Taxation sent the Official Dispatch No. 05/CD-TCT directing tax units to urgently implement Decree 44/2023/ND-CP issued by the Government on the policy of reducing taxes. VAT according to the resolution of the National Assembly.
Decree No. 44/2023/ND-CP (Decree 44) stipulating the policy of reducing value-added tax (VAT) under Resolution No. 101/2023/QH15 dated June 24, 2023 of the National Assembly. Decree 44 takes effect from July 1, 2023 to the end of December 31, 2023.
So, according to the Resolution, the list of goods eligible for VAT reduction in 2023 is 8% that businesses and people need to understand? Let's find out with Bizzi in this article!
List of goods eligible for VAT reduction in 2023 to 8% billion
According to the guidance in Decree 44/2023/ND-CP dated June 30, 2023, the group of goods and services currently subject to the tax rate of 10% will be reduced to 8% from July 1, 2023 except for the group of goods, Services are detailed in Appendices I, II, III issued together with Decree 44/2023/ND-CP.
Download all appendices to reduce VAT 2023 Decree 44/2023 here
The value-added tax reduction for each type of goods and services specified in Clause 1 of this Article shall be applied uniformly at the stages of import, production, processing, business and trade. For the sold coal products (including the case of coal mined and then screened, classified according to a closed process, then sold) subject to value-added tax reduction. Coal products listed in Appendix I to this Decree are not eligible for value-added tax reduction at other stages other than the mining stage.
Corporations and economic groups that carry out a closed process to sell are also subject to value-added tax reduction for sold coal products.
In case the goods and services mentioned in Appendices I, II and III issued together with this Decree are not subject to value-added tax or subject to value-added tax 5% according to the provisions of the Tax Law Value-added tax shall comply with the provisions of the Law on Value-Added Tax and may not reduce value-added tax.
>> See more: Appendix on VAT reduction 2023 according to Decree 44/2023/ND-CP
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What goods and services are subject to VAT rate 10%?
According to the provisions of Article 11 of Circular 219/2013/TT-BTC, the tax rate 10% applied to goods and services is not specified in Articles 4, 9 and 10 of this Circular.
The VAT rates mentioned in Articles 10 and 11 are uniformly applied to each type of goods and services at the stages of import, production, processing or commercial business.
Example 50: For garments subject to the tax rate of 10%, the tax rate of 10% is applied to this item at the stage of import, production, processing or trading.
Scraps and discarded products that are recovered for recycling and reused upon sale shall be subject to the VAT rate according to the tax rate of the sold scrap and discarded products.
Establishments trading in many types of goods and services with different VAT rates must declare VAT at each tax rate prescribed for each type of goods or service; if the business establishment does not determine according to each tax rate, it must calculate and pay tax according to the highest tax rate of goods and services that it produces and trades in.
During the implementation process, if there is a case that the value-added tax rate in the VAT rate table according to the list of preferential import tariff is not consistent with the guidance in this Circular, the guidance in this Circular shall be followed. This. In case the applied VAT rate is not uniform for the same type of imported and domestically produced goods, the local tax authority and local customs office shall report to the Ministry of Finance for timely guidance on implementation. currently agreed.
Time to determine VAT
According to the provisions of Article 8 of Circular 219/2013/TT-BTC, the time to determine VAT is as follows:
- For the sale of goods, it 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.
- For service provision, it is the time when the service is completed or the service invoice is issued, regardless of whether money has been received or not.
- For telecommunications services, it is the time to complete the verification of data on telecommunications connection service charges under economic contracts between telecommunications service providers, but no later than 2 months from the date of issuance. charges for telecommunication connection services.
- For electricity and clean water supply activities, it is the date on which the electricity and water consumption indicators are recorded on the meter to be recorded on the bill.
- For real estate business, construction of infrastructure, construction of houses for sale, transfer or lease, is the time to collect money according to the project implementation progress or the payment schedule stated in the contract. Based on the collected amount, business establishments shall declare output VAT arising in the period.
- For construction and installation, including shipbuilding, is the time of acceptance and handover of works, work items, completed construction and installation volumes, regardless of whether money has been collected or not. get money.
- For imported goods, it is the time of customs declaration registration.
Above is information about the VAT reduction policy according to Resolution No. 101/2023/QH15. Decree No. 44/2023/ND-CP takes effect from July 1, 2023 to the end of December 31, 2023.
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