VALUE-ADDED TAX REDUCTION ACCORDING TO DECREE NO. 92/2021/ND-CP

On October 19, 2021, Chairman of the National Assembly Vuong Dinh Hue signed and promulgated Resolution No. 406/NQ-UBTVQH15 promulgating a number of solutions to support businesses and residents affected by the Covid 19 epidemic. It was followed by Decree No. 92/2021/ND-CP of the Government detailing the implementation of the above resolution. In particular, the regulation on VAT reduction is one of the notes that business units need to pay attention to, understand and apply.

TASCO tax agent would like to inform customers of the content of regulations on value-added tax reduction during the period of the Covid-19 epidemic, which is developing very complicatedly, significantly affecting the business results as well as employees in the article below!

Value added tax reduction from November 1, 2021 to the end of December 31, 2021 for goods and services, including:

1️⃣ Transport services (railway transport, water transport, air transport, other road transport); Accommodation Service; Food Service; services of travel agencies, tour businesses and support services, related to the promotion and organization of tours.

2️⃣ Publishing products and services; cinematographic services, television program production, sound recording and music publishing; works of art and services of creation, art, entertainment; services of libraries, archives, museums and other cultural activities; sports, entertainment and entertainment services.

3️⃣ Details of goods and services eligible for tax reduction specified at Points a and b of this Clause shall comply with Appendix 1 of the List of goods and services eligible for value-added tax reduction promulgated together with this Decree, in which the goods and services specified at Point b of this Clause do not include publishing software and production and business goods and services in the online form.

4️⃣ In case the goods and services specified in this Clause are not subject to value added tax under the Value Added Tax Law, the provisions of the Law on Value Added Tax should be applied.

Value added tax reduction rate:

a) Enterprises and organizations that calculate value-added tax by the deduction method are entitled to a reduction of 30% of the value-added tax rate for goods and services specified in Clause 1 of this Article.

b) Enterprises and organizations that calculate value-added tax according to the percentage method on revenue are entitled to a reduction of 30% of the percentage rate to calculate value-added tax on goods and services according to the provisions of section above.

It can be said that our State has timely had policies to support employees and employers (enterprises, business organizations, business households, ...) in tax, financial support and materials,... Units need to understand these regulations to be able to reduce some of the difficulties caused by the impact of the epidemic on business operations and fully enjoy their benefits.

Wish you success and overcome the pandemic!

If you have any questions, please contact the hotline: 0975.48.08.68 for a free and direct consultation!

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