Which imported goods are applied 8%VAT?
Ms. Vu Hong Huong's company (Hanoi) trades beauty massage machines made from stainless steel and ABS plastic, certified by the Food and Drug Administration of the United States FDA. The company imports machines with goods code are: 90191090; 85437090; 85098090; 96032900.
Ms. Huong asked, what is the shipment with the above code, what is the VAT rate? When the company sells to consumers, can the company apply 8% output VAT reduction according to Decree No. 15/2022/ND-CP of January 28, 2022 of the Government?
Hanoi Tax Department answered this issue as follows:
Pursuant to the Prime Minister's Decision No. 43/2018/QD-TTg of November 1, 2018, promulgating the system of Vietnamese product industry.
Pursuant to the Government's Decree No. 15/2022/ND-CP of January 28 Support for socio -economic recovery and development program, the reduction of VAT is as follows:
- "Article 1. VAT reduction
1. Reduce value added tax for goods and services groups are 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 shall not reduce VAT.
2. VAT reduction level
a) Business establishments calculate VAT according to the deduction method applying 8% VAT rate for goods and services specified in Clause 1 of this Article ... "
- "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 ... ".
Based on the above provisions, the case of her company directs VAT calculation according to the deduction method, providing products that are applying VAT rate of 10% and not on the list of goods and services specified in Appendix I, II and III issued under the Government's Decree No. 15/2022/ND-CP of January 28 No. 15/2022/ND-CP from February 1, 2022 to December 31, 2022.
It is suggested that she shall base on the provisions of the law cited above and compare with the actual situation of commodity products produced and traded by her company to comply with the regulations.
The determination of VAT at the import stage, asking her to contact the customs office for guidance.
In the course of implementation, if the problem arises, it is suggested that she provides dossiers related to problems and contacts the tax authorities directly for specific instructions.
By: Translator: LeAnh-Bizic
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