Nghe An issues policy guidelines to support 2% VAT exemption and reduction

Specifically, at point a, clause 3, section II, Resolution No. 11/NQ-CP stipulates: “Business recovery support, Cooperatives, business households on tax, fee and charge exemption and reduction:

The Provincial People's Council's supervision delegation on the procedures for publicizing tax administrative procedures at the People's Committee of Quy Hop town, Quy Hop district. Photo: BNA Document

In 2022, groups of goods and services currently subject to a value-added tax (VAT) rate of 10% will be2% tax reduction, 8% for business establishments calculating value added tax by the deduction method and a 20% reduction in the percentage rate when issuing invoices for business establishments, households and individuals calculating VAT by the percentage method on revenue, except for some groups of goods and services such as: telecommunications, information technology, banking and financial activities, securities, insurance,real estate business, metals, prefabricated metal products, mining products…

Due to the impact of the Covid-19 epidemic, tourism activities have encountered numerous difficulties and this sector is one of the groups of industries that are supported with tax and fee exemptions. Photo: Experiential tourism at Sao Va waterfall, Que Phong. Photo courtesy of PV

Based on the above provisions, to facilitate andremove difficulties for businessesIn order to promote the effectiveness of production and business activities, and help consumers understand and benefit from VAT reduction, the Provincial People's Committee requests departments, branches and localities to implement the following specific contents:

+ The People's Committees of 21 districts and cities need to disseminate the above VAT rate reduction policy to civil servants and people living and working in the area.

+ The Department of Industry and Trade coordinates with relevant units to check the selling prices of goods and services from February 1, 2022 of enterprises, organizations, households and individuals doing business in the area to achieve the goal of consumers enjoying the benefits of VAT rate reduction according to regulations. Timely detect and strictly handle the phenomenon of taking advantage of the policy to increase the selling prices of goods and services with reduced VAT.

Online dialogue on tax propaganda between the Customs Department and import-export enterprises at Nghe An bridge point at the end of 2021 to remove obstacles on tax exemption and reduction. Photo: Nguyen Hai

+ The Provincial Tax Department coordinates with the Department of Information and Communications and provincial press agencies to disseminate information about the groups of beneficiaries of the above policies to all taxpayers currently operating through the press and radio systems in the area so that taxpayers can know and implement; continue to disseminate, and at the same time guide and remove difficulties and obstacles of taxpayers in the process of applying Decree 15/2022/ND-CP dated January 28, 2022 of the Government ontax exemption and reduction according to Resolution 43/2022/QH 15 of the National Assembly on fiscal and monetary policies to support the economic recovery and development program in 2022.

In addition, the People's Committee of Nghe An province also requested the Tax Department to regularly organize inspections and supervision, focusing on businesses, organizations, households and individuals trading in groups of goods and services subject to VAT reduction in 2022; promptly detect and handle cases of intentional violations according to the provisions of law.

Nguyen Hai