Accordingly, the insurance company in Quang Ninh must consult the Insurance Corporation because the amount of compensation for damage is beyond its authority.

On December 24, 2021, the Insurance Corporation approved the first repair cost with an amount of over 400 million VND after VAT (VAT at this time is 10%).

On February 16, 2022, the Insurance Corporation approved a number of items according to the quotation of Mr. Dang Anh's company with an amount of nearly 20 million dong after VAT (according to the quotation, tax is 10%).

By May 2022, the car had been repaired, the two sides had signed and handed over the car and the insurance unit reported that the documents had been completed. Mr. Dang Anh's company issued an invoice for the insurance with the total amount of 2 times that the insurance unit approved with the tax rate of 10% because it thought that this car was repaired before the time of Decree No. 15/2022/ND-CP on effective VAT reduction.

The invoice file has been received by the insurance unit in Quang Ninh and transferred to the Insurance Corporation for more than 3 months now, but Mr. Dang Anh's company has not yet been paid. The reason for this is that the Insurance Corporation does not accept the issued invoice with 10% VAT and requires the invoice to be reduced VAT according to Decree No. 15/2022/ND-CP which was effective from 1/2/2022.

Mr. Dang Anh asked, in this case, is it correct that your company issues an invoice at the VAT rate of 10%? Is it possible to issue invoices according to the provisions of VAT in Decree No. 15/2022/ND-CP?

The Tax Department of Quang Ninh province responded to this problem as follows:

In Clauses 1 and 2, Article 9 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government on the time of invoice issuance:

"1. The time of making invoices for sale of goods (including sale of state assets, confiscated properties, replenishment of state funds and sale of national reserve goods) is the time of transfer of ownership or the rights to use the goods for the purchaser, regardless of whether money has been collected or not.

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 while providing the service, the time of making an invoice is the time of collecting money (excluding the case of collecting a deposit or an advance to ensure the performance of the supply contract) which providing services: accounting, auditing, financial and tax consulting; valuation; survey, technical design; supervision consultancy; construction investment project formulation)".

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 the Socio-Economic Recovery and Development Program:

In Article 1, regulations on VAT reduction:

"Article 1. VAT reduction

1. Reduced VAT for groups of goods and services currently applying 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 together with this Decree.

c) Information technology according to the law on information technology. Details are in Appendix III issued 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 the sold coal mined (including the case of coal mined and then screened and classified according to a closed process to be sold) which is 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 Law on VAT, the provisions of the Law on VAT shall be followed by the 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...".

Clause 1, Article 3 provides for the effect:

"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.

Pursuant to the above provisions, in case your company provides goods and services, if eligible for VAT reduction according to the provisions of Article 1 of Decree No. 15/2022/ND-CP, the time of transfer of right ownership/use rights for goods or the time of completion of service provision from February 1, 2022 to the end of December 31, 2022, the company issues an invoice at the tax rate of 8% according to regulations.

The Tax Department of Quang Ninh province replied to Mr. Dang Anh to know and comply with the provisions of the legal documents cited in this document.