Procedures for implementing value added tax reduction?

Lao Dong Newspaper Legal Consulting Office replied:

Clause 3, Article 1, Decree 180/2024/ND-CP dated December 31, 2024 of the Government regulating the policy of reducing value added tax according to Resolution No. 174/2024/QH15 dated November 30, 2024 of the National Assembly stipulates the order and procedures for implementing value added tax reduction as follows:

a) For business establishments specified in Point a, Clause 2 of this Article, when making a value-added tax invoice to provide goods and services subject to value-added tax reduction, write “8%” in the value-added tax rate line; value-added tax amount; total amount the buyer must pay. Based on the value-added tax invoice, business establishments selling goods and services declare output value-added tax, business establishments purchasing goods and services declare input value-added tax deduction according to the reduced tax amount stated on the value-added tax invoice.

b) For business establishments specified in Point b, Clause 2 of this Article, when making sales invoices for providing goods and services subject to value-added tax reduction, in the "Total amount" column, fully record the amount of goods and services before reduction, in the "Total amount of goods and services" line, record the amount reduced by 20% of the percentage rate on revenue, and note: "reduced... (amount) corresponding to 20% of the percentage rate to calculate value-added tax according to Resolution No. 174/2024/QH15".

Clause 1, Article 2 of Decree 180/2024/ND-CP stipulates: This Decree takes effect from January 1, 2025 to June 30, 2025.

Thus, the order and procedures for implementing value added tax reduction in the first 6 months of 2025 are prescribed as above.