Mr. Tuan asked, which of the above items is subject to the value-added tax (VAT) rate of 10%, and which items apply the VAT rate of 8% according to Decree No. 15/2022/ND- CP?
 
In case the company exports many items on the same invoice to the buyer in February 2022, both the seller and the buyer have declared tax, but now it is discovered that the invoice has issued the wrong VAT rate according to Decree No. 15/2022/ND-CP, it is required to increase the tax on this item and reduce the tax on other items of that invoice. So, how to adjust that invoice?
 
The Ministry of Finance responded to this issue as follows:
 
Pursuant to Decision No. 43/2018/QD-TTg dated November 1, 2018 promulgating the system of Vietnamese product industries;
 
Pursuant to the Government's Decree No. 15/2022/ND-CP dated January 28, 2022 stipulating the tax exemption and reduction policy according to the National Assembly's Resolution No. 43/2022/QH15 on fiscal and monetary policies to support support the program of socio-economic recovery and development:
 
- In Article 1, regulations on VAT reduction:
 
"1. VAT reduction applies to groups of goods and services currently subject to the 10% tax rate, except for the following groups of goods and services:
 
a) Telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products. Details are in Appendix I issued together with this Decree.
 
b) Products, goods and services subject to excise tax. Details are in Appendix II issued with this Decree.
 
c) Information technology in accordance with the law on information technology. Details are 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 uniformly applied at the stages of import, production, processing, business and trade. For sold-out mining coal (including the case of coal mined and then screened, classified and sold by a closed process) subject to VAT reduction. Coal products listed in Appendix I to this Decree are not eligible for VAT reduction at other stages other than mining.
 
In case the goods and services mentioned in Appendices I, II and III issued together with this Decree are not subject to VAT or subject to 5% VAT according to the provisions of the VAT Law, the following procedures shall be followed with provisions of the Law on VAT and not eligible for VAT reduction.
2. VAT reduction
 
a) Business establishments that calculate VAT by the credit method may apply the VAT rate of 8% for goods and services specified in Clause 1 of this Article.
 
… 4. Business establishments must make separate invoices for goods and services eligible for VAT reduction. In case a business establishment does not issue a separate invoice for goods and services eligible for VAT reduction, it is not entitled to VAT reduction.
 
5. Where the business establishment has issued an invoice and declared at the tax rate or percentage for calculating VAT that has not been reduced as prescribed in this Decree, the seller and the buyer must make a record or there is a written agreement specifying the error, at the same time the seller makes an invoice to correct the error and delivers the adjusted invoice to the buyer. Based on the adjusted invoice, the seller declares and adjusts the output tax, and the buyer declares the adjustment of input tax (if any)..."
 
- Article 3 provides for the effect and organization of implementation:
 
"1. This Decree takes effect from February 1, 2022.
 
Article 1 of this Decree shall apply from February 1, 2022 to the end of December 31, 2022…”.
 
Tax rate for scrap items
 
Pursuant to Appendix I, II, III issued together with Decree No. 15/2022/ND-CP of the Government;
 
Pursuant to Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the implementation of the Law on VAT and Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government regulating detailing and guiding the implementation of a number of articles of the Law on VAT;
 
- In Article 11 guiding the 10% tax rate as follows:
 
"Article 11: Tax rate of 10%
 
The 10% tax rate applies to goods and services not specified in Articles 4, 9 and 10 of this Circular.
 
The VAT rates mentioned in Articles 10 and 11 are uniformly applied to each type of goods and services at the stages of import, production, processing or commercial business.
 
... Scraps and discarded products that are recovered for recycling and reused when sold shall be subject to the VAT rate according to the tax rate of sold scrap and discarded products.
 
Pursuant to Official Letter No. 902/TCT-CS dated March 25, 2022 of the General Department of Taxation providing guidance on VAT rates for scrap steel products in Decree No. 15/2022/ND-CP.
Based on the above provisions, in case the company calculates VAT by the credit method, provides goods and services, the VAT rate is 10% and is not on the list of goods and services specified in Appendix II. Appendix I, II, III promulgated under Decree No. 15/2022/ND-CP, the VAT rate of 8% as prescribed in Clause 2, Article 1 of Decree No. 15/2022/ND-CP shall apply from February 1, 2022 to the end of December 31, 2022.
 
In case the company provides metal products (including scrap and discarded products) on the list of goods and services specified in Appendix I promulgated under Decree No. 15/2022/ND-CP, it is not eligible subject to the VAT rate of 8%.
 
For goods and services eligible for VAT reduction according to Decree No. 15/2022/ND-CP, the company has issued an invoice and declared according to the tax rate or percentage to calculate the VAT that has not yet been reduced. The company shall handle according to the guidance in Clause 5, Article 1 of Decree No. 15/2022/ND-CP.
 
It is suggested that you base on the actual situation, understand the above-cited legal provisions to comply with regulations.
 
During the implementation process, if you still have problems, please provide specific documents and contact the tax authority directly managing them for answers.