In recent years, the Vietnamese government has applied VAT reduction policies to promote economic development and support businesses. In this article, we will compare important Decrees: Decree 44/2023/ND-CP and Decree 15/2022/ND-CP on VAT reduction.
Regulations on VAT reduction 2023
Pursuant to Clause 1, Article 1 of Decree 44/2023/ND-CP, the groups of goods eligible for VAT reduction and non-reduction are as follows: Value-added tax reduction for groups of goods and services currently in use. apply the tax rate of 10%, except for groups of goods and services.
- Telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated products, mining products (excluding coal mining), coke, oil Refined mines, chemical products. Details can be found in Appendix I.
- Goods and services subject to excise tax. Details are in Appendix II.
- Information technology under the law on information technology. Details can be found in Appendix III.
- Decree 44/2023/ND-CP on VAT reduction in 2023
Note: In case the goods and services mentioned in Appendix 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 regulations of the Law on Value-Added Tax, the provisions of the Law on Value-Added Tax shall be followed and the value-added tax shall not be reduced.
- For details, please see Appendix I here.
- For details, please see Appendix II here.
- Please see Appendix III for details here.
>> See more: Appendix on VAT reduction 2023 according to Decree 44/2023/ND-CP
>> See more: List of goods eligible for VAT reduction in 2023?
Effectiveness of the Regulation on VAT reduction 2023
Decree 44/2023/ND-CP of the Government takes effect from July 1, 2023 to the end of December 31, 2023.
Thus, business establishments (individuals and organizations) that are eligible for tax reduction under this Decree will be entitled to tax reduction from July 1, 2023 to the end of December 31, 2023.
Comparing Decree 44/2023/ND-CP and Decree 15/2022/ND-CP
Basically, Decree 44/2023 and Decree 15/2022 on VAT reduction have not changed much, mainly amending and supplementing some points.
- Alike:
Tax reduction beneficiaries of the two Decrees are quite similar
- Different:
– VAT reduction policy 2023 with the additional object of “Corporations and economic groups that carry out a closed process to sell are also subject to value-added tax reduction for mined coal products. sold out"
-. VAT reduction policy 2023 amending some HS codes to be consistent with HS codes according to the list of exported and imported goods of Vietnam promulgated together with Circular 21/2022/TT-BTC.
Decree 15/2022/ND-CP |
Decree 44/2023/ND-CP |
1. Supplementing regulations on coal mining products sold |
|
| No specified | Corporations and economic groups that carry out a closed process to sell are also subject to value-added tax reduction for sold coal products. |
2. Amendment of regulations on handling invoices that have been made and declared according to the tax rate/rate of % which has not been reduced |
|
| The seller and the buyer make a written record/agreement clearly stating the error, and the seller issues an invoice to correct the error and delivers the adjusted invoice to the buyer. | The seller and the buyer shall handle the issued invoices in accordance with the law on invoices and documents.
Compared with the provisions at Point b, Clause 2, Article 19 of Decree 123/2020/ND-CP, the seller and the buyer agree to choose one of two forms: - Prepare adjusted invoices; or – Make a replacement invoice |
3. Abolish regulations related to invoices printed on order in the form of tickets with pre-printed face value (Clause 6, Article 1 of Decree 15/2022); Expenses deductible when determining income subject to corporate income tax (Article 2 of Decree 15/2022) |
|
APPENDIX I |
|
4. Correction of HS codes of insecticides |
|
| 3808.59.10 | 3808.59.11
3808.59.19 |
5. Supplementing HS codes of other pesticides and other chemical products used in agriculture |
|
| 3808.52.20 | |
6. Correction of HS codes of organic surfactants, excluding soap |
|
| 3402.11
3402.12.00 3402.13 3402.19 |
3402.31
3402.39 3402.41.00 3402.42 3402.49 |
7. Correction of HS codes of copper, unwrought copper alloys, copper stencils, cemented copper (precipitated copper) |
|
| 7401.00.00
7402.00.00 |
7401.00.10
7401.00.20 7402.00.10 7402.00.90 |
8. Correction of HS codes of metal tanks, tanks and containers (25120, 251209) |
|
| 7419.91.10
7419.99.92 8103.90.00 8106.00.90 8107.90.00 8109.90.00 |
7419.20.20
7419.80.80 8103.91.00 8103.99.00 8106.10.90 8106.90.90 8112.69.90 8109.91.00 8109.99.00 8112.39.00 8112.49.00 |
9. Correction of HS codes of parts of bombs, mines, grenades, torpedoes, missiles, bullets |
|
| 9306.90.00 | 9306.90.10
9306.90.90 |
10. Correction of HS codes of parts and accessories of military weapons, pistols, revolvers, flamethrowers and other weapons |
|
| 9306.90.00 | 9306.90.10
9306.90.90 |
11. Correction of HS codes of steel or copper springs and leaf springs |
|
| 7419.99.40
7419.99.99 9114.10.00 |
7419.80.30
7419.80.90 9114.90.00 |
12. Correction of HS codes of chains (except for chain links) and parts of chains made of Steel or copper |
|
| 7419.10.00 | 7419.20.10
7419.80.10 |
APPENDIX III-A |
|
13. Fix HS code of TV cameras |
|
| 8525.80.40 | 8525.81.20
8525.82.20 8525.83.20 8525.89.20 |
14. Fix HS code of popular mobile phones |
|
| 8517.12.00 | 8517.14.00 |
15. Fix HS code of smart mobile phone (Smart phone) |
|
| 8517.12.00 | 8517.13.00 |
16. Adding HS code of smart watch |
|
| 91.02 | |
17. Correction of HS codes of Antennas and their parts; Parts of transmission equipment for radio or television broadcasting and television cameras |
|
| 8525.80
8517.70.40 |
8525.81
8525.82 8525.83 8525.89 8517.71.00 |
18. Correction of HS codes of radio receivers operating only with external power, of a motor vehicle type |
|
| 8527.21.00 | 8527.21.10
8527.21.90 |
APPENDIX III-REMOVAL |
|
19. Edit HS code of accounting machine |
|
| 8470.90.20 | 8470.90.90 |
20. Correction of HS Codes of Electronic Diodes (LEDs) |
|
| 8539.500.00 | 8539.51.00
8539.52.10 8539.52.90 |
21. Correction of Endnotes Appendix I, Appendix III |
|
| For HS codes in column (10) Part A and column (4) Part B of this Appendix: Items not eligible for value-added tax reduction in Chapter 02, group of 04 digits or 06 digits including all product codes 08 digits in that Chapter or heading. |
HS codes in column (10) Part A and column (4) Part B This Appendix is for reference only. The determination of HS codes for actually imported goods shall comply with the provisions on goods classification in the Customs Law and legal documents guiding the implementation of the Customs Law. |
Decree 44/2023/ND-CP and Decree 15/2022/ND-CP both aim to reduce VAT and support businesses. Bizzi Hopefully this article will help you and businesses have an overview and better understand the difference between Decree 44/2023/ND-CP and Decree 15/2022/ND-CP on tax reduction. VAT.
Through the above content, we hope that your businesses understand better the new regulations, as well as receive timely support from this new VAT reduction policy in 2023.
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