Vietnam MOF Clarifies Temporary Reduced VAT for Specific Services

The Vietnamese Ministry of Finance Dec. 22 clarified the 8 percent reduced VAT rate for businesses calculating VAT by the credit method, effective from Feb. 1 to Dec. 31 under Decree No. 15/2022/ND-CP. A taxpayer inquired what rate the invoice should reflect if payment for qualifying services is made in December 2022 under a contract, but the services aren’t rendered until after Dec. 31. The agency responded that the time for purposes of determining the VAT rate, is when the services are completed or the service provision invoice is issued, regardless of whether payment has been made. [Vietnam, Government Portal, ...