On July 19th, 2023, Ho Chi Minh City Tax Department issued Official Letter No. 8999/CTTPHCM-TTHT, according to which:
Regarding invoicing in case the buyer returns the goods due to improper specifications and quality:
- In case when an organization or individual buys goods, the seller has issued an invoice, the buyer has received the goods, but then the buyer discovers that the goods are not conforming to specifications or quality, they must return all or part of the goods, the seller shall issue a return invoice to reduce or replace the issued invoice, and the seller and the buyer have an agreement to state the returned goods clearly.
- For goods purchased before January 1, 2023 subject to VAT reduction at the rate of 8%, after December 31st, 2022, the buyer returns the goods due to improper specifications and quality, the seller issues a return invoice at the VAT rate of 8%.
For making commercial discount invoices of goods eligible for VAT reduction according to Decree No. 15/2022/ND-CP:
- In case the business establishment applies the form of commercial discount for customers and for the commercial discount of goods eligible for VAT reduction at the rate of 8%, sold in year 2022 but from January 1st, 2023, when an invoice showing the commercial discount content is issued, then:
- In case the discount amount is made on the last purchase or the next period after December 31st, 2022, the discount amount of the sold goods shall be adjusted to the content of the taxable price, the actual tax rate in accordance with applicable law at the time of invoice.
- In case the discount amount is made at the end of the discount program (period) after December 31st, 2022, the seller shall issue a new invoice to adjust and apply the VAT rate of 8% at the time of sale.
