Incentive turns to abuse

Reflecting with PV Tien Phong, many enterprises specializing in purchasing iron and steel scrap (all over the country and importing them for construction steel factories) reflect that they are falling into a state of “clinical death” because of the lack of systematic guidance. of tax departments on items exempted from 2% VAT. Accordingly, the Government’s Decree 15/2022 reduces VAT from 10% to 8%, in the appendix of items that are not eligible for tax reduction nor scrap iron and steel, but it says “Iron and steel products have not been classified yet”. in which category”. When businesses sent out a request, the Tax Department of Thai Nguyen and Vinh Long instructed scrap iron and steel to be reduced VAT to 8%, but other provinces such as Bac Ninh replied that this item is not eligible for VAT reduction (stay the same. ten%).

Talking to Reporter Tien Phong, Minister Ho Duc Phuc said that he had grasped the incident and directed to quickly agree on how to respond. The representative of the General Department of Taxation said that the misunderstanding is because the decree stipulates some unspecified terms.

This leads to the fact that the above enterprises do not know what VAT rate to invoice for import and export goods (8 or 10% for the same item), so they cannot pay for goods, even facing legal risks. tax management (when the same item but the input and output invoices and record different tax rates). In response, enterprises must make a written agreement on the temporary tax rate recorded in the invoice for payment and wait for other instructions from the tax authority to adjust the invoice. “Enterprises just need to be guided clearly and uniformly on tax rates, even without tax reduction, to avoid risks for businesses,” said the leader of DT Company.

Mr. Dang Mai Dung, the owner of a business in Hanoi (specializing in providing sales brokerage services and receiving commissions) also encountered problems with VAT calculation and invoicing. According to Mr. Dung, in the products of brokerage businesses, there are things that are eligible for VAT reduction, some are not, the company only collects brokerage fees, and this part of the fee is not known to be reduced tax. Mr. Dung’s company is ready to issue an invoice for 10% VAT (no need to reduce tax) for all brokerage fees, but is worried that it is not valid, later tax inspection may be penalized.

Similarly, Ms. Trinh Thi Phuc, an accountant for an auto repair unit in Bac Tu Liem district (Hanoi), reflected that invoicing customers of the unit was having problems with VAT. For example, in the car painting service, paint materials are not reduced VAT, but the painting fee is tax reduced, so it is not known how to invoice customers. Similar problems are also encountered with other repair services the unit is providing. This situation also causes difficulties for construction and mechanical processing enterprises.

According to PV