Mazars in Vietnam Newsletter - Tax & Legal Update - Issue March 2022

1. Official documents:

• VAT reduction under Decree No. 15/2022/ND-CP issued by the Government on 28 January 2022
• Public Letter No. 02/CD-TCT issued by the GDT on 09 February 2022 stimulating the launch of VAT reduction in accordance with Resolution No. 43/2022/QH15 and Decree No. 15/2022/ND-CP

2. What concerns (or) challenges do enterprises cope with?

1. Would invoicing issuance timing point affect the VAT reduction mechanism under Decree 15/2022?
2. If the contract has been signed before Feb 2022 and indicating 10% VAT, but the work is performed after 01 February 2022, hence entitled to the VAT reduction, what formalities are required to effect such change in VAT?
3. For products quoted as VAT-inclusive price, upon 2% VAT reduction, would keeping the price unchanged be considered incompliant with regulations?
4. What is the invoicing procedure for eligible VAT reduction items?
5. What is the correct approach to determine the eligible product/ service via HS code?
6. What is the applicable sanction policy for incompliant activities with the new Decree 15/2022?

Disclaimer:

We do trust the above points are notable and sufficient, but should you have any questions or need a deeper discussion on this issue, please do not hesitate to contact us.

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For regulation changes and tax matters, we can provide you with assistance on:

• Registration, declaration of Personal Income Tax, Corporate Tax, VAT and Foreign Contractor Tax.
• Tax refunds assistance and representation.
• Consultancy on utilizing opportunities provided by transfer pricing.
• Customs advisory: Compliance & reporting; FTA and C/O; Harmonised System code classification and valuation; Inventory control; International trade arrangement; and Others.