In order to support and encourage businesses in the production and business, recently the state has issued the tax regulations, VAT latestwith significant changes. Specific well with a number of goods and services to be applied to reduce VAT from 10% to 8%. So, details the change in the level of reduced VAT happen? Track articles of AccNet for more information.
1. What is VAT?
VAT (value) is the kind of tax on the added value of goods and services arising from the process of production, circulation until to consumers.
VAT is a type of indirect taxes, understand this is simply the type that is included in the selling prices of goods and services that consumers use. It is also often referred to with a different name that is VAT (Value - Added Tax).
So, over the years, VAT has changed? The AccNet learn the rules on VAT rates latest 2022 okay!
2. Tax regulations, VAT latest 2022
Follow regulations on VAT refund latest 2022 issued by The government in the Decree 15/2022/ND-CP: From date 1/2/2022 to the end of the day 31/12/2022, the group of goods and services are applying the VAT rate of 10% will be reduced by 2% except for some goods and services. Mean tax rate of only 8%.
However, tax regulations, VAT latest required to invoice separately for goods and services subject to reduced VAT to be applied 8% tax rate. This has got to be reflection harshly from many businesses. To improve the above problems, The government has issued Decree 41/2022/ND-CP amended as follows:
- Business premises VAT calculation by the method of deduction: On VAT invoices must specify the tax rate of each goods and services, under the new rules about tax, VAT latest.
- Business premises VAT calculation by the method of percentage on sales: On the invoice must specify the amount is reduced according to the regulations.
Here are the rules about VAT latest, however, circular of price reduction of VAT at 8% is only applied to the end of the day 31/12/2022 not included in the year 2023. Should the business need to pay attention, to avoid confusion.
3. What you need to know about VAT
3.1 The rates of VAT
Follow tax regulations, VAT latest then there are 3 rates of VAT are applied: 0%, 5% and 10%. Each level of the tax will be applied to each object on goods, different services. Specifically, as the following table:
|
Tax rate VAT |
Applicable objects |
| 0% | Goods and services exports, according to international practice. |
| 5% |
Goods and services essential for life. Goods and services are inputs for agricultural production. |
| 10% | The goods and services typically other. |
3.2 principle of applying the tax rate
In the process of declaration and payment of VAT, businesses should note the 3 following principles:
- The level of VAT, for each type of goods and services are prescribed uniform at all stages: Import, production, processing and trade business.
- Business premises variety of goods and services with the different VAT to tax under each of the tax rate specified for each type of goods and services; if not then calculated according to the tax rate, the highest of goods and services that are the basis for production and business.
- Imported goods made according to the tax specified in icon VAT according to The category the import tax deals (according to tax regulations, VAT latest).
3.3 Rules how to calculate VAT latest
According to the method of deduction
Applicable objects
- Base business, business to fulfill the accounting regime as prescribed.
- Annual revenue > $ 1 trillion.
- The base business, business revenue of
How to calculate VAT according to the method of deduction
Formula for calculating VAT: VAT need to file = output VAT - input VAT
In which:
Output VAT: Total number of VAT, of goods and services that the business sold during the tax period, they are clearly shown on VAT invoices.
Output VAT: Total VAT number is recorded on the invoice purchase goods and services used for business production or VAT number noted on the paper to pay VAT on the import of goods imported or paper pay VAT on behalf of the foreign country.
Under the direct method
Follow rules on VAT rates latestmethod of tax calculation is divided into 2 types: Direct on VAT and direct on revenue. Therefore, depending upon the form of his business which businesses make the right choice.
- Directly on VAT
Applicable objects
The business premises, the activities on the field of processing, design, purchase and sale of gold, silver or precious stones.
Recipe directly on VAT:
Value added tax payable = value * Tax rate
In which:
The tax rate is 10%.
Value added = sale Price of gold, silver, precious stones for consumer - Price buy gold, silver, precious stones, respectively.
- Directly on the revenue
Applicable objects
Base business, business revenue of
The department of business, enterprise and cooperatives formed.
Organizations, foreign individuals have business activities in Vietnam, but without establishing a legal entity.
Business unit is the individual or business.
Foreign organization other, not done or done but not the full accounting of Vietnam (except for organizations and individuals active in the field of search, exploration and development of oil and gas).
Economic organization other, not business, cooperative (unless already registered to pay tax according to the method of deduction).
- Recipe directly on the revenue according to the regulations on VAT refund latest
VAT payable = revenue * Percentage of tax
In which:
Revenue: the Total amount that the basis of the actual sales of customers on invoices, VAT for goods and services subject to VAT, including the surcharges, charges incurred.
Rate of tax: to be specified with each business activity as follows:
Buy and sell goods, trade: 1%
Building but does not provide raw materials, not services with goods: 5%
Construction supply of raw materials, production, transportation and supply services with goods: 3%
Activities other: 2%
Here is the information tax regulations, VAT latest that AccNet synthetic. Through this article, expect that business can update the latest news about the change in VAT rules 2022. As well as find out the method of calculating VAT in accordance with your business.
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