Legal updates

The VAT rate.

Accordingly, in case the Company provides logistics services and has invoiced according to the provisions of Point a, Clause 4, Article 9 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government, the Company shall be entitled to a reduction in VAT according to the regulations for invoices made from July 1, 2023 to December 31, 2023.

The Tax Department of Binh Duong province guides, in case the total net profit from business activities in the period plus the cost of borrowing interest after deducting deposits and  interest from loan incurred in the period plus amortization expenses incurred in period is negative amount (negative EBITDA) then:

Whereby, Company Ain the British West Indies supplies goods to Company Bin the British Virgin Island through Company C in Vietnam and the goods are delivered in the territory of Vietnam:

Company A is subject to contractor tax in Vietnam.
Company C is obliged to declare and pay contractor tax on behalf of Company A according to regulations.

Accordingly, the General Department of Taxation guides the case that the Company sells goods to foreign partners without a customs declaration, the value-added tax rate is 10%.

Accordingly, the General Department of Taxation guides:

(i)In case goods and services are eligible for VAT reduction according to Decree 15/2022/ND-CP, after December 31, 2022, if errors are detected must issue an adjustment or replacement invoice and they do not affect the amount of goods and payable VAT or adjustment of the taxable price, the adjusted or replaced invoice shall apply the VAT rate of 8%; Where errors in quantity of goods lead to adjust the amount of goods and VAT, the adjusted or replaced invoice shall apply the VAT rate prescribed at the time of making the adjusted or replaced invoice.

Accordingly, the General Department of Taxation guides:

(i)In case goods and services are eligible for VAT reduction according to Decree 15/2022/ND-CP, after December 31, 2022, if errors are detected must issue an adjustment or replacement invoice and they do not affect the amount of goods and payable VAT or adjustment of the taxable price, the adjusted or replaced invoice shall apply the VAT rate of 8%; Where errors in quantity of goods lead to adjust the amount of goods and VAT, the adjusted or replaced invoice shall apply the VAT rate prescribed at the time of making the adjusted or replaced invoice.

In principle, specific goods and services such as electricity, water, telecommunications services, information technology services, television services, delivery services, banking, securities, and insurance If the goods are sold in a certain period, the invoice must specify the period of goods and service provision. For the services produced by period, the list of invoices may be used to list the types of goods and services sold with the invoice; The list is kept together with the invoice to serve the inspection and comparison of the competent authorities as prescribed at point a, Clause 6, Article 10 of Decree No. 123/2020/ND-CP.

Accordingly, the National Assembly Standing Committee agreed on the scope of application of the VAT reduction policy as stipulated in Resolution No. 43/2022/QH15 dated January 11, 2022 of the National Assembly on fiscal and monetary policies. support the program of socio-economic recovery and development.

Accordingly, in order to implement Article 4 of Decree No. 145/2020/ND-CP of the Ho Chi Minh Department of Labour, War Invalids and Social Affairs guiding the implementation of the report on the use of labor, as follows:

1.Subjects of the report: Enterprises, agencies and organizations that employ employees and have their headquarters and operating locations in Ho Chi Minh City (hereinafter referred to as units).

Accordingly, the case of Mr. A is a foreigner assigned to work in Vietnam. Mr. A came to Vietnam for the first time on December 4, 2022 for the purpose of medical examination and work permit. After that, he returned home on 10/02/2023 and returned to Vietnam to work and receive salary at the Company.