Separate goods invoices no longer required for reduced 8% VAT

1. Our company is trading some goods qualified for the reduced VAT rate of 8% in accordance with Decree 15/2022/ND-CP. As our system is designed to have different VAT rates presented in one invoice, we have combined goods qualified for 8% VAT and those subject to 10% VAT on one single customer invoice. Does this billing method trigger any risk for the VAT rate reduction?

On June 20, 2022, the government issued Decree 41/ND-CP amending Decree 15/ND-CP on the invoicing requirement related to the reduced VAT rate of 8%. Accordingly, taxpayers are no longer required to issue separate invoices for goods and services in order to enjoy the reduced 8% VAT rate.

This rule is also retroactively applied from February 1, 2022 to taxpayers who have issued a single invoice for goods eligible for 8% VAT and goods at other VAT rates.

2. We are a manufacturing company who registered to declare VAT on credit. We are using the e-invoice following the provision of Decree 123/2020/ND-CP. Upon our export of the product overseas, do we need to issue a VAT e-invoice for customs declaration?

According to prevailing customs regulations, a commercial invoice will be required for customs declaration, but not a VAT e-invoice. Therefore, the VAT e-invoice should be issued after the completion of customs clearance procedures in accordance with Point 3, Article 13, Decree 123/2020/ND-CP.

3. Our company was established in 2019 and generated revenue from 2020. We are qualified for the CIT incentive package applicable to taxpayers located in a qualified industrial zone. In 2022, we amended our investment registration certificate (IRC) to extend the duration of project life. Does this project life extension have any impact on the current CIT incentive package of our company?

In principle, amendment of the IRC without changing CIT incentive conditions will not have an impact on the CIT incentive package of taxpayers. As the company is entitled to the CIT incentive based on location, when the company extends the project life (without amending other registered content of the original IRC), the company should still be eligible for the original CIT incentive package.

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