VCCI: Businesses still have problems when applying the policy of reducing value added tax

VCCI proposed that the drafting agency consider the option of reducing value-added tax for all goods and services from 10% to 8%.

Responding to the Ministry of Finance 's request for comments on the draft Resolution of the National Assembly on reducing value-added tax; at the same time, after consulting a number of businesses and experts, the Vietnam Federation of Commerce and Industry (VCCI) said that the policy of reducing value-added tax from 10% to 8% implemented in the past has brought many positive impacts to the economy. In the context of many economic difficulties, continuing the policy of reducing value-added tax from July to the end of 2024 is extremely necessary.

However, through synthesizing opinions, many businesses said that they are facing many difficulties when applying this policy, mainly stemming from the classification of which goods are subject to 10% tax and which goods have their tax reduced to 8%.

Although the Government has issued Decree 15/2022/ND-CP stipulating tax exemption and reduction policies according to Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Socio- Economic Recovery and Development Program and Decree 44/2023/ND-CP stipulating value-added tax reduction policies according to Resolution No. 101/2023/QH15 dated June 24, 2023 of the National Assembly, the implementation process is still confusing.

These two Decrees are based on Vietnam's economic sector codes, while this document has been mainly used for statistical purposes and is rarely considered a basis for determining the rights and obligations of enterprises. Specifying groups of goods and services is very difficult, especially in cases where there is no specialized law. For example, the group of telecommunications and information technology goods is very difficult to identify because there is no clear definition in other legal documents. Many other types of goods and services also have problems with classification, such as the production of prefabricated metal products and the production of chemicals, which are also very general and difficult to classify.

Many businesses look up the Appendix of Decree 15 and 44 but do not dare to confirm whether their goods and services are subject to a tax rate of 10% or 8%. Some businesses ask the tax authorities, customs authorities, and the Ministry of Finance, but these agencies also give very general answers, such as "The company is requested to base on Decision No. 43/2018/QD-TTg of the Prime Minister , compare the product codes of the goods and services provided by the company with the product codes of the goods and services in Appendix I, II, III issued with Decree No. 44/2023/ND-CP to comply with the regulations".

The difficulty in determining the tax rate of 8% or 10% causes many social costs and increases the risks of production and business activities. Many businesses reported that they had to hire additional accountants to adjust invoices and books to match the new tax rate. Many businesses reported that they negotiated the purchase and sale of goods, agreed with customers on quantity, quality, and price but could not agree on the tax rate of 8% or 10%, so they could not sign the contract. There have been cases where businesses implementing construction contracts had disputes with partners when settling accounts simply because the two parties had different views on the tax rate.

For the above reasons, VCCI recommends that the drafting agency consider the option of reducing value-added tax for all types of goods and services from 10% to 8%.

According to PV/VTV

Source: https://doanhnghiepvn.vn/doanh-nhan/vcci-doanh-nghiep-con-vuong-mac-khi-ap-dung-chinh-sach-giam-thue-gia-tri-gia-tang/20240524095157327