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Many businesses wonder about the reduction of VAT

At a dialogue between the Tax Department of Ho Chi Minh City and hundreds of businesses on the morning of April 27, the representative of Huong Thanh Binh Commercial Construction Co., Ltd (HCMC) suggested that the state has reduced VAT, should reduce the dong. ministry and can waive 2% current tax.

According to this representative, from February to the end of 2022, the state will reduce value-added tax to 8% for some goods. Particularly for the construction industry, up to 80% of production materials are not eligible for VAT reduction.

Ho Chi Minh City: Many businesses wonder about the reduction of VAT - Photo 1.

The scene of the dialogue between Ho Chi Minh City Tax Department and businesses

Specifically, items such as iron, steel, chemicals, corrugated iron, paint… are subject to 10% input VAT. However, after completing the construction, the enterprise issues an 8% VAT invoice, which is considered a 2% tax loss in the long run.

On the other hand, when building works in other provinces and cities, enterprises have to pay an additional current tax of 2% – a VAT amount (1% or 2%) payable when constructing, installing, transferring. Real estate in other provinces and cities makes the financial ability of small businesses extremely difficult.

Ho Chi Minh City: Many businesses wonder about the reduction of VAT - Photo 2.

Representative of an enterprise having a dialogue with leaders of Ho Chi Minh City Tax Department

Responding to businesses, Mr. Nguyen Tien Dung, Deputy Director of Ho Chi Minh City Tax Department said that from the beginning of 2022, the current tax rate has been reduced to 1%. “The tax authority is looking forward to receiving all opinions of businesses and will report to superiors in time to have ideas to adjust tax policies to suit reality,” said Mr. Dung.

Also at the dialogue, many other businesses raised questions related to goods eligible for VAT reduction to 8% and how to handle invoices with incorrect VAT rates.

With these questions, leaders of Ho Chi Minh City Tax Department explained and guided businesses to look up the details of Decree 15/2022/ND-CP on tax exemption and reduction policies according to Resolution No. 43/2022/QH15 of the Government. Congress.


According to Thy Tho

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