Invoicing in 2023 for service in 2022, what does tax rate apply?

Tue, 21 Feb 2023 10:25:00  |  Print  |  Email   Share:

Ms. Dang Thi Thu Trang's company (Dong Nai) has used some outsourced services that are eligible for VAT reduction from 10% to 8% and applied in 2022, now there is one last payment period for the cost. service in December 2022, ending service on December 25, 2022.

As Ms. Trang's company needs to review and adjust costs, it will be possible to issue invoices after January 1, 2023.

Ms. Trang asked, if her company issues an invoice after January 1, 2023 for the cost of services used before December 31, 2022, will the VAT be 8% or 10%? Are there any guidelines for determining VAT with suppliers?

Dong Nai Tax Department responded to this problem as follows:

Pursuant to Clause 2, Article 9 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government stipulating the time of issuing invoices:

"... 2. Time of invoicing for service provision is the time of completion of service provision, regardless of whether money has been collected or not. In case the service provider collects money before or during the service provision, the time of invoice is the time of payment (excluding the case of collection of deposits or advances to ensure the performance of contracts for the provision of services: accounting, auditing, financial and tax consulting; price appraisal; survey, technical design); supervision consultancy; formulation of construction investment projects)".

Pursuant to Article 3 of Decree No. 15/2022/ND-CP dated January 28, 2022 of the Government:

"1. This Decree takes effect from February 1, 2022.

Article 1 of this Decree applies from February 1, 2022 to the end of December 31, 2022.

Based on the above guidance, if your company uses services in the group of goods and services eligible for VAT reduction according to Decree No. 15/2022/ND-CP dated January 28, 2022 of the Government. if the invoice date is from February 1, 2022 to December 31, 2022, the VAT rate of 8% will apply. From January 1, 2023, the VAT rate shall comply with the current Law on VAT.

Dong Nai Tax Department notifies the company to know and strictly comply with the provisions of legal documents.



By: Translator: LeAnh-Bizic/According to (Government Newspaper).


Back    Up to top   

Same category News :

Other news :

Copyright © 2016 by the Chamber of Commerce and Industry of Vietnam - VCCI
Write "Chamber of Commerce and Industry of Vietnam"
or;; the release of information from this Website.
Designed and developed by Vietkent