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Monday, September 26, 2022

Firms failing to reduce VAT to face sanctions

By Le Hoang

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HCMC – Enterprises which deliberately delay the reduction of the value added tax (VAT) from 10% to 8% will face heavy sanctions, according to the General Department of Taxation.

The general department has sent a dispatch to localities urging the application of the VAT reduction as required by the National Assembly and the Government.

At present, many enterprises, organizations and business households and individuals have failed to apply the 8% VAT.

Therefore, the General Department of Taxation asked heads of departments of taxation of localities to direct their subordinates to propagandize the new policy to local residents and firms; instruct and support taxpayers; and inspect and supervise the deployment of policies of the National Assembly and the Government.

To facilitate the invoice issuance in line with the VAT reduction, the general department on January 27 announced the upgrade of e-invoice issuance solutions.

The VAT reduction from 10% to 8% will help consumers cut their expenses.

Consumers may find it hard to see the result of the policies in services and goods with low values. However, if they use many services, they can clearly see the benefits of the policy.

The VAT reduction will also help sellers to cut the prices of their products and services, thus improving their sales.

According to Central Retail, customers of GO!, Big C and Tops Market supermarkets nationwide have seen their VAT cut from 10% to 8% since early this month.

Apparel retailer Uniqlo has also applied the policy since February 1, including for online orders.

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