On May 29, 2023, the General Department of Taxation issued Official Letter No. 2121/TCT-CS, according to which:
- In case goods and services are eligible for VAT reduction according to Decree No.15/2022/ND-CP, after December 31, 2022, errors are detected, they must issue an invoice for adjustment or replacement without affecting the price and the amount of goods and VAT payable or adjustment of the taxable price, the adjusted or replaced invoice shall apply the VAT rate of 8%; In case of errors in quantity of goods leading to errors in the price and VAT, the adjusted or replaced invoice shall apply the VAT rate prescribed at the time of making the adjusted or replaced invoice.
- In case the goods were purchased before January 1, 2023 at the tax rate of 8%, and after December 31, 2022, the buyer returns the goods due to improper specifications and quality, the seller shall issue an invoice to return the goods reduce or replace the invoice already made with the VAT rate of 8%, the seller and the buyer have an agreement to clearly state the returned goods.
- 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 2022 but from January 1, 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 31, 2022, the discount amount of the sold goods shall be adjusted according to the content of the taxable price and the applicable 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 period after December 31, 2022, the seller shall issue an adjusted invoice and apply the VAT rate of 8% at the time of sale.
In case a business establishment sells goods or provides services (subject to VAT reduction according to Decree No. 15/2022/ND-CP) but after December 31, 2022, the business establishment will issue an invoice for revenue from selling goods and services arising from February 1, 2022 to December 31, 2022 and construction and installation activities with the time of acceptance and handover of works, work items, blocks quantity of construction and installation completed, regardless of whether money has been collected or not, is determined from February 1, 2022 to the end of December 31, 2022 but after December 31, 2022, the business establishment issues invoices for revenue from construction and installation that have been tested, accepted, and handed over are in the case of making invoices at the wrong time and are entitled to VAT reduction according to Decree No. 15/2022/ND- CP dated January 28, 2022 by the Government and was administratively sanctioned for the act of making invoices at the wrong time.
