Official Letter No. 75/CTCTH-TTHT on the implementation of Decree No. 180/2024/ND-CP

Official Letter No. 75/CTCTH-TTHT on the implementation of Decree No. 180/2024/ND-CP

Legislation

Official Letter No. 75/CTCTH-TTHT on the implementation of Decree No. 180/2024/ND-CP

GENERAL DEPARTMENT OF TAXATION

TAX DEPARTMENT OF CAN THO CITY

No. 75/CTCTH-TTHT

Regarding the implementation of Decree No. 180/2024/ND-CP dated December 31, 2024, by the Government on VAT reduction policy

SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

Can Tho, January 6, 2025

 

To:

Enterprises, cooperatives, economic organizations, public units, households, and individuals doing business in Can Tho city.

On December 31, 2024, the Government issued Decree No. 180/2024/ND-CP on the VAT reduction policy based on Resolution No. 174/2024/QH15 issued by the National Assembly on November 30, 2024, effective from January 1, 2025, to June 30, 2025. The Tax Department of Can Tho City would like to note some key points as follows:

  1. Goods and services eligible for tax reduction:
  • The VAT reduction applies to goods and services subject to a 10% tax rate, except for those specified in points a, b, and c, Clause 1, Article 1 of Decree No. 180/2024/ND-CP.
  • The VAT reduction for each type of goods and services will be uniformly applied across all stages of import, production, processing, and trade.
  1. VAT reduction rate:
  • Enterprises that apply the VAT deduction method are subject to an 8% VAT rate for the goods and services specified in Clause 1, Article 1 of Decree No. 180/2024/ND-CP.
  • Businesses (including business households and individuals) using the percentage method for VAT calculation will receive a 20% reduction in the percentage rate used to calculate VAT when issuing invoices for the goods and services eligible for the VAT reduction as specified in Clause 1, Article 1 of Decree No. 180/2024/ND-CP.
  1. Procedures and steps for implementation:

  • For businesses using the VAT deduction method:

    • When issuing VAT invoices for goods or services eligible for VAT reduction, the VAT rate line on the invoice should state "8%"; the VAT amount; and the total amount payable by the buyer.
    • Based on the VAT invoice, businesses selling goods or services will declare output VAT, and businesses purchasing goods or services will declare input VAT deduction according to the VAT amount reduced as indicated on the VAT invoice.
    • If businesses sell goods or services with different VAT rates, each VAT rate for each item should be clearly stated on the invoice.

  • For businesses (including business households and individuals) using the percentage method for VAT calculation:

    • When issuing invoices for the sale of goods or services eligible for VAT reduction, the "Total amount" column should show the full price of goods or services before reduction, and the "Total goods and services amount" line should show the amount after a 20% reduction in the VAT calculation percentage. Additionally, a note should be included: "Reduced by... (amount) corresponding to a 20% reduction in the VAT calculation percentage as per Resolution No. 174/2024/QH15."

  • If a business has already issued invoices and declared VAT using the non-reduced VAT rate or VAT calculation percentage before the reduction, the seller and buyer should process the already issued invoices in accordance with invoice and voucher regulations. Based on the processed invoices, the seller should adjust the output VAT, and the buyer should adjust the input VAT (if applicable).

  • Businesses should declare VAT for the goods and services eligible for VAT reduction using Form No. 01 in Appendix IV attached to Decree No. 180/2024/ND-CP along with the VAT tax declaration.

  1. Effective date:

This decree is effective from January 1, 2025, to June 30, 2025.

(The full content of Decree No. 180/2024/ND-CP dated December 31, 2024, is available on the Can Tho City Tax Department's website: https://cantho.gdt.gov.vn)

Recipients:

  • As above via email;
  • General Department of Taxation "for reporting";
  • People's Committee of Can Tho City "for reporting";
  • Can Tho City Party Committee's Propaganda Department;
  • City departments and agencies;
  • People's Committees of districts, towns "for coordination in dissemination";
  • Department of Information and Communications "for coordination in dissemination";
  • Can Tho Radio and Television; Can Tho Newspaper "for coordination in dissemination";
  • Can Tho City Business Association;
  • Inspection Department 1, 2, and Tax Sub-departments "to implement for taxpayers under their management";
  • Can Tho Tax Department's website;
  • Archives: VT, TTHT.

ON BEHALF OF THE DIRECTOR OF THE TAX DEPARTMENT

DEPUTY DIRECTOR

 

 

 

Huynh Tan Phat

See details here.