(Construction) - The Ministry of Finance proposes, in 2023, to reduce the VAT rate by 2% for all goods and services subject to the 10% tax rate (to 8%); reduce 20% of the percentage rate to calculate VAT for business establishments (including business households and business individuals) when issuing invoices for all goods and services subject to tax liability. 10% VAT.
The Ministry of Finance shall coordinate with relevant ministries, branches and localities to focus on effective implementation of Tax Laws; drastically in the management of state budget revenue, collection management, fight against revenue loss, transfer pricing, tax evasion.
The Ministry of Finance is collecting comments from the people with the draft Resolution of the National Assembly on reducing value added tax (VAT).
According to the Ministry of Finance, in order to promptly respond to developments in the socio-economic situation, and at the same time consider and calculate in accordance with actual conditions, in addition to the solutions that have been and are being implemented for the year. 2023 (extension of tax and land rent payment deadlines; reduction of land rents; reduction of environmental protection tax for gasoline and oil products), the continuation of VAT reduction as applied in 2022 to support Supporting businesses and people is necessary.
Reducing VAT to stimulate consumption, economic recovery and development
In order to stimulate consumption demand, recover and develop the economy, in 2022, the National Assembly issued Resolution No. 43/2022/QH15 dated January 11, 2022 on fiscal and monetary policies to support the Recovery Program. economic recovery and development. The Government has issued Decree No. 15/2022/ND-CP dated January 28, 2022 providing tax exemption and reduction policies according to Resolution No. 43/2022/QH15 of the National Assembly. The implementation results have shown that the total support package for VAT reduction in 2022 is about VND 44 trillion and the reduction of VAT has stimulated consumption demand, contributing to promoting production and business development.
However, besides the achieved results, during the implementation process, it was difficult for both taxpayers and tax authorities to identify goods and services that are not subject to tax reduction. Regulations on excluding some groups of goods and services as in Resolution No. 43/2022/QH15 increase compliance costs for taxpayers and collection costs of tax authorities (many types of goods and services upon identification of tax authorities). Determining who is not eligible for tax reduction requires the coordination of many relevant ministries and branches).
2% reduction of VAT rate until the end of December 31, 2023
In 2023, the Ministry of Finance proposes to reduce the VAT rate by 2% for all goods and services subject to the 10% tax rate (to 8%); reduce 20% of the percentage rate to calculate VAT for business establishments (including business households and business individuals) when issuing invoices for all goods and services subject to tax liability. 10% VAT.
Follow this plan to ensure the right target of stimulating consumption demand, in line with the current economic context, thereby promoting production and business activities to recover and develop soon to contribute back to the state budget. as well as the economy.
The application period is from the date the policy is issued to the end of December 31, 2023.
It is expected that the decrease in state budget revenue will be about 5.8 trillion VND/month
Assessing the impact of the policy, the Ministry of Finance said, it is expected that the reduction in state budget revenue is about 5.8 trillion VND/month, if applied in the last 6 months of the year, it will be equivalent to about 35 trillion VND.
To overcome and offset the impacts on state budget revenue in the short term as well as ensure the initiative in managing state budget estimates, the Ministry of Finance will coordinate with relevant ministries, branches and localities to focus on directing. effectively implement and implement tax laws; continue to reform and modernize the tax system, simplify tax administrative procedures; at the same time drastically manage the state budget revenue, focusing on timely and effective implementation of groups of solutions for revenue management, combating revenue loss, transfer pricing, and tax evasion.
