Ms. Hang company uses ink to print on Duplex paper. According to her, the ink is subject to 10%VAT and 8%VAT. Ms. Hang asked, how much is the product of the company?

Plastic cup manufacturing company has paper stamps outside. The company uses virgin plastic seeds to run to plastic cups and sell this plastic cup, so the company's taxpayer is 8% or 10%?

The company's products have an external paper stamp (8 %VAT), the value of stamps and plastic is 50-50, how much does the company's products are subject to VAT?

Di An City Tax Department, Binh Duong province answered this issue as follows:

Pursuant to Point A, Section 1.1, Clause 1, Article 3 of Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies to support the socio -economic recovery and development program:

"A) Reducing 2% of VAT rate in 2022, applicable to goods and services groups that are applying 10% VAT rate (8%), except for some groups of goods and services After: telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metal, products from precast metal, mining products (excluding exploitation coal), Chemistry, refined oil, chemical products, goods and services are subject to special consumption tax ... ".

Pursuant to the Government's Decree No. 15/2022/ND-CP of January 28 Support for socio -economic recovery and development program:

In Article 1 of the VAT reduction regulation

"Article 1. Reducing VAT

1. Reducing VAT for groups of goods and services is applying the tax rate of 10%, except for the following groups of goods and services:

a) Telecommunications, financial activities, banking, securities, insurance, real estate business, metal and products from precast metal, mining products (excluding coal mining), coal cup, refined oil, chemical products. Details in Appendix I issued together with this Decree.

b) Special consumption goods and services. Details in Appendix II issued together with this Decree.

c) Information technology in accordance with information technology. Details in Appendix III issued together with this Decree.

d) The reduction of VAT for each type of goods and services specified in Clause 1 of this Article is applied uniformly at import, production, processing and commercial business stages. For charcoal items for sale (including cases of coal exploited and then sieve to recruit and classify according to the newly sold closed process) subject to VAT reduction. Coal items under Appendix I issued together with this Decree, at other stages other than the sale of VAT reduction.

In case the goods and services mentioned in the Appendix I, II and III issued together with this Decree are subject to VAT or the subjects subject to 5% VAT in accordance with the VAT Law, shall comply with the provisions of the VAT Law and not reduced VAT.

2. VAT reduction level

a) Business establishments calculate VAT according to the deduction method that is applicable to 8% VAT rate for goods and services specified in Clause 1 of this Article ".

In Clause 1, Article 3 of the provisions on the effectiveness of implementation and implementation:

"Article 3. Validity and implementation organization

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

Article 1 of this Decree is applied from February 1, 2022 to the end of December 31, 2022 ... ".

Pursuant to Appendix I, II and III issued together with the Government's Decree No. 15/2022/ND-CP of January 28, 2022;

Pursuant to Article 2 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance, guiding the implementation of the VAT Law and Decree No. 209/2013/ND-CP of December 18, 2013 of Government covered details and entitled to the implementation of a number of VAT laws:

"Article 2. Tax subjects

Subjects subject to VAT are goods and services for production, business and consumption in Vietnam (including goods and services purchased by organizations and individuals in foreign countries), except for non -subjects Tax VAT guiding in Article 4 of this Circular ".

Based on the above provisions and according to the content presented by Ms. Le Thi Hang:

- If the company buys some input materials with VAT rate of 10% and 8%:

Subjects subject to VAT are goods and services used for production, business and consumption in Vietnam, except for subjects not subject to VAT according to the guidance in Article 4 of Circular No. 219/2013/TT-BTC.

Therefore, the output VAT rate of the product does not depend on the input VAT rate of the material.

- In case the company uses ink to print on Duplex paper, producing plastic cups with paper stamps outside (stamp value and plastic is 50-50), if these products are not in Appendix I category Goods and services shall not reduce VAT in 2022 (attached to Decree No. 15/2022 / ND-CP dated January 28, 2022 of the Government), the Company shall apply the VAT rate of 8% From February 1, 2022 to December 31, 2022.

If there is any problem, she can contact the propaganda team - Support taxpayers according to the phone number 0274.3733427 or Tax No. 2 team at 0274.3742841.