Notice 27/TB-TCT 2022 upgrading invoicing software in reaction to regulations on VAT rate reduction

• Official number: 27/TB-TCT
• Legislation Type: Announcement
• Organization: The General Department of Tax
• Signer: Pham Quang Toan
• Issued Date: 27/01/2022

MINISTRY OF FINANCE GENERAL DEPARTMENT OF TAXATION -------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------
No. 27/TB-TCT	Hanoi, January 27, 2022

NOTICE

UPGRADING INVOICING SOFTWARE IN REACTION TO REGULATIONS ON VAT RATE REDUCTION UNDER RESOLUTION NO. 43/2022/QH15

In implementing regulations on reducing value-added tax rates under the Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies aimed to support the socio-economic recovery and development program (hereinafter referred to as Resolution No. 43/2022/QH15), the Ministry of Finance is submitting the Decree on tax incentive policies under the Resolution No. 43/2022/QH15 to the Government to seek its approval for promulgation. This draft Decree stipulates the reduction of value-added tax on a number of groups of goods and services from February 1, 2022 to the end of December 31, 2022 as follows:

- For businesses using VAT invoices: when issuing VAT invoices for provision of goods and services eligible for VAT reduction, enter “8%”; VAT amount; total amount to be paid by the buyer at the VAT rate line.

- For businesses using sales invoices: when issuing sales invoices for provision of goods and services eligible for VAT reduction, enter the full amount of payment for goods or services before tax reduction at the column “Amount”; enter the amount after deducting 20% in the percentage of sales at the line “Total amount”; concurrently, note: "the deducted amount equivalent to 20% in the percentage of sales that is used as a basis for VAT calculation under the Resolution No. 43/2022/QH15”.

The General Department of Taxation notifies the upgradation of the e-invoicing solution for tax authorities, specifically as follows:

1. For taxpayers who are using the electronic invoice system prescribed in the Decree No. 123/2020/ND-CP of the Government and the Decision No. 1209/QD-BTC of the Minister of Finance.

The General Department of Taxation takes the following actions:

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- Receiving data available on 8% tax rate invoices if these invoices are not directly issued on the tax authority's system.

2. For any taxpayer who issues invoices upon the recommendation about e-invoice data components prescribed in the Circular No. 32/2011/TT-BTC and the tool used for displaying invoice entries with respect to invoices issued at the recommendation of the General Department of Taxation

The General Department of Taxation shall upgrade the application to add the tax rate of 8% (like 5%, 10%) and display entries of 8% tax rate invoices.

The General Department of Taxation requests Tax Departments to get well-informed about this Notice; communicate, propagate this Notice amongst, and provide instructions for implementation of to the taxpayers that are businesses under their jurisdiction.   Also, the General Department of Taxation is requesting e-invoice service providers and intermediary organizations providing e-invoice solutions to upgrade e-invoice solutions to support taxpayers (businesses) in applying them to issuance of invoices in accordance with regulations./.

PP. GENERAL DIRECTOR
DIRECTOR OF INFORMATION TECHNOLOGY DEPARTMENT




Pham Quang Toan