(Construction) - Mr. Luong Hai Kien (Hai Duong) asked, if there are materials in the construction cost estimate such as iron and steel, stone, sand, gravel, petrol, etc., can the estimate be reduced VAT? remaining 8% according to Decree No. 15/2022/ND-CP or not?
Illustration (Source: Internet).
City Tax Department. Hai Duong, Hai Duong province answered this question as follows:
Clause 1, Article 1 of Decree No. 15/2022/ND-CP dated January 28, 2022 stipulates who are entitled to value-added tax (VAT) reduction as follows:
"Article 1. VAT reduction
1. Reduce VAT for groups of goods and services currently applying the tax rate of 10%, except for the following groups of goods and services:
a) Telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke , refined petroleum, chemical products. Details are in Appendix I issued together with this Decree.
b) Products, goods and services subject to excise tax. Details are in Appendix II issued with this Decree.
c) Information technology in accordance with the law on information technology. Details are in Appendix III issued together with this Decree.
d) The reduction of VAT for each type of goods and services specified in Clause 1 of this Article is uniformly applied at the stages of import, production, processing, business and trade. For sold-out mining coal (including the case of coal mined and then screened, classified and sold by a closed process) subject to VAT reduction. Coal products listed in Appendix I to this Decree are not eligible for VAT reduction at other stages other than mining.
Pursuant to Point a, Clause 3, Article 1 of Decree No. 15/2022/ND-CP, the order and procedures for VAT reduction are as follows:
"3. Order and procedures for implementation
a) For business establishments specified at Point a, Clause 2 of this Article, when making VAT invoices providing goods and services eligible for VAT reduction, write "8%" at the VAT rate line; VAT money; the total amount to be paid by the buyer. Based on VAT invoices, business establishments selling goods and services shall declare output VAT, and business establishments purchasing goods and services shall declare and deduct input VAT according to the reduced tax amount stated on the invoice. VAT".
Based on the above provisions, Mr. Luong Hai Kien compares with the provisions of Clause 1, Article 1 of Decree No. 15/2022/ND-CP.
In case, the unit has sold goods and services stated on the VAT invoice that are not on the list of goods and services specified in Appendix I, II, III to Decree No. 15/2022/ND-CP, the Those goods and services will be taxed from 10% to 8% as prescribed in Point a, Clause 2, Article 1 of Decree No. 15/2022/ND-CP.
