What groups of goods xem bóng đá trực tiếp vtv2 services are subject to a 10% VAT rate in Vietnam?

What groups of goods xem bóng đá trực tiếp vtv2 services are subject to a 10% VAT rate in Vietnam?

Based on Article 11 ofCircular 219/2013/TT-BTC, the 10% VAT rate applies to goods xem bóng đá trực tiếp vtv2 services that are not subject to non-VAT items, 0% VAT, or 5% VAT.

- The VAT rates stated in Articles 10 xem bóng đá trực tiếp vtv2 11 ofCircular 219/2013/TT-BTCare uniformly applied to each type of goods xem bóng đá trực tiếp vtv2 services at the stages of import, production, processing, or commercial business.

- Recovered scrap xem bóng đá trực tiếp vtv2 by-products for recycling xem bóng đá trực tiếp vtv2 reuse when sold are subject to VAT rates according to the rates of the scrap xem bóng đá trực tiếp vtv2 by-products sold.

- Businesses dealing in multiple types of goods xem bóng đá trực tiếp vtv2 services with different VAT rates must declare VAT according to each specified VAT rate for each good xem bóng đá trực tiếp vtv2 service type. If the business cannot determine the rate for each type, it must calculate xem bóng đá trực tiếp vtv2 pay tax at the highest rate of the goods xem bóng đá trực tiếp vtv2 services produced or traded.

- In the implementation process, if there are cases where the VAT rates in the VAT rate schedule according to the Preferential Import Tariff Schedule are inconsistent with the guidance in this Circular, the guidance in Circular 219/2013/TT-BTC should be followed.

*Note:Where VAT rates are inconsistently applied to the same imported xem bóng đá trực tiếp vtv2 domestically produced goods, local tax authorities xem bóng đá trực tiếp vtv2 local customs authorities report to the Ministry of Finance for prompt unified guidance.

From July 1, 2024, Decree 72/2024/ND-CP will officially take effect, reducing the current 10% VAT rate on certain groups of goods xem bóng đá trực tiếp vtv2 services to 8%. However, the following groups are excluded from this reduction based on Clause 1, Article 1 ofDecree 72/2024/ND-CP:

[1]Telecommunications, finance, banking, securities, insurance, real estate business, metals xem bóng đá trực tiếp vtv2 metal products, mineral products (excluding coal mining), coke, refined petroleum, xem bóng đá trực tiếp vtv2 chemical products. Details in Appendix 1 issued with this Decree. (DownloadAppendix 1)

[2]Goods xem bóng đá trực tiếp vtv2 services subject to excise tax. Details in Appendix 2 issued with this Decree. (DownloadAppendix 2)

[3]Information technology according to IT laws. Details in Appendix 3 issued with this Decree. (DownloadAppendix 3)

[4]VAT reduction for each type of goods xem bóng đá trực tiếp vtv2 services specified in Clause 1, Article 1 ofDecree 72/2024/ND-CPis uniformly applied at the stages of import, production, processing, xem bóng đá trực tiếp vtv2 commercial business.

For coal products sold (including cases where coal after mining is sifted, classified through a closed process before being sold), they are subject to VAT reduction.

Coal products listed in Appendix 1 issued with this Decree (DownloadAppendix 1), at stages other than mining sales, are not eligible for VAT reduction.

The economic corporations, groups implementing closed processes also fall under the VAT reduction category for coal products sold.

In cases where goods xem bóng đá trực tiếp vtv2 services listed in Appendices 1, 2, xem bóng đá trực tiếp vtv2 3 issued with this Decree fall under non-VAT items or 5% VAT items under the Law on VAT, the Law on VAT regulations will be applied, xem bóng đá trực tiếp vtv2 no VAT reduction will be available.

What groups of goods xem bóng đá trực tiếp vtv2 services are subject to a 10% VAT rate in Vietnam? (Image from the Internet)

What isVAT?

Based on the provisions of Article 2 of theLaw on VAT 2008, VAT is defined as follows:

Value Added Tax

Value Added Tax is a tax calculated on the added value of goods xem bóng đá trực tiếp vtv2 services arising during the process from production, circulation to consumption.

According to the definition, VAT is a tax applied only to the added value xem bóng đá trực tiếp vtv2 not based on the entire value of the goods or services.

According to the provisions of Article 4 of theLaw on VAT 2008:

Taxpayers are organizations xem bóng đá trực tiếp vtv2 individuals producing xem bóng đá trực tiếp vtv2 trading VAT-liable goods xem bóng đá trực tiếp vtv2 services (hereinafter referred to as business establishments) xem bóng đá trực tiếp vtv2 organizations xem bóng đá trực tiếp vtv2 individuals importing VAT-liable goods (hereinafter referred to as importers).

Thus, the actual VAT taxpayer is the final consumer who uses the product service, xem bóng đá trực tiếp vtv2 the business establishment acts as the VAT collector for the tax authority.

What are regulations on VAT payment in Vietnam?

Based on Article 20 ofCircular 219/2013/TT-BTCstipulating the tax payment location:

Tax payment location

1. Taxpayers declare xem bóng đá trực tiếp vtv2 pay VAT at the localities where production xem bóng đá trực tiếp vtv2 business activities are conducted.

2. Taxpayers declaring xem bóng đá trực tiếp vtv2 paying VAT under the deduction method have subordinate production accounting units located in other provinces different from the province where the head office is located. They must pay VAT at the localities where the production units are located as well as the localities where the head office is located.

3. In cases where enterprises xem bóng đá trực tiếp vtv2 cooperatives applying the direct method have production units in a province different from where the head office is located or have sales activities in a different province, the enterprises xem bóng đá trực tiếp vtv2 cooperatives must declare xem bóng đá trực tiếp vtv2 pay VAT at the localities where the production units xem bóng đá trực tiếp vtv2 sales activities are conducted. The VAT is declared xem bóng đá trực tiếp vtv2 paid based on a percentage of revenue generated in the external province. Enterprises xem bóng đá trực tiếp vtv2 cooperatives do not have to pay VAT at the head office for revenues arising out of the province that has been declared xem bóng đá trực tiếp vtv2 paid.

4. In cases where telecommunication service providers engage in telecommunications services with postpaid charges in provinces different from where their head office is located, xem bóng đá trực tiếp vtv2 they have established dependent branches applying the deduction method, the VAT declaration xem bóng đá trực tiếp vtv2 payment for telecommunications services with postpaid charges should follow these steps:

- Declare VAT on postpaid telecommunications service revenue of the entire business to the tax authority directly managing the head office.

- Pay VAT at the localities where the head office is located xem bóng đá trực tiếp vtv2 where the dependent branches are located.

The VAT payable at the localities where dependent branches are located is determined as 2% (for postpaid telecommunications services subject to 10% VAT) out of the revenue (excluding VAT) of the postpaid telecommunications services at those locations.

5. Tax declaration xem bóng đá trực tiếp vtv2 payment are carried out under the provisions of the Tax Administration Law xem bóng đá trực tiếp vtv2 guiding documents.

Accordingly, taxpayers declare xem bóng đá trực tiếp vtv2 pay VAT at the localities where production xem bóng đá trực tiếp vtv2 business activities are conducted. The actual operational situation determines the appropriate tax payment location under the above regulations.