Decree 15 has reduced the VAT rate for many goods and services
from 10% to 8%. However, the implementation of this has resulted in
some additional burden for companies as it is not possible to
include different VAT rates in one VAT invoice. The draft decree
addresses this issue.
LEGAL UPDATE
On 28 January 2022, the Government promulgated Decree No.
15/2022/ND-CP (Decree 15) guiding tax exemption
and reduction under the National Assembly's Resolution No.
43/2022/QH15 on fiscal and monetary policies to support the
socio-economic development and recovery program. Decree 15, which
entered into force on 1 February 2022, deals with the
reduction of 2% for the value-added tax (VAT) rate
to certain goods and services currently subject to 10% VAT. It also
provides information on deductible expenses in relation to the
support and sponsorship of COVID-19 prevention and control for the
determination of enterprises' taxable income.
