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FAQ: DECREE NO. 15/2022/ND-CP

Decree No. 15/2022/ND-CP dated January 28, 2022 of the Government on tax exemption and reduction policy under the National Assembly’s Resolution No. 43/2022/QH15 on fiscal and monetary policies supporting socio-economic recovery and development program.

1. What is the full content of Decree 15/2022/ND-CP regarding the reduction of VAT from 10% to 8% for some business lines from February 1, 2022?

The full content of Decree 15/2022/ND-CP (hereinafter referred to as Decree 15) can be found HERE.

2. What is the purpose of Decree 15?

According to economic experts, Decree 15 is the government’s tax exemption and reduction policy to help businesses, organizations and people overcome difficulties caused by the COVID-19 pandemic to recover and further promote production and business operations. At the same time, the decree is expected to stimulate consumption and investment, thereby contributing to the recovery of the national economy post-pandemic and the implementation of social security.

3. How long will Decree 15 remain in effect?

Decree 15 takes effect from February 1, 2022 to December 31, 2022.

4. How will the selling price of SNB’s products & services change after February 1, 2022?

(1) For products not on the list of products eligible for VAT reduction according to Decree 15, the selling prices before VAT and after VAT will remain the same.

(2) For products eligible for VAT reduction from 10% to 8%, the selling price before VAT remains the same, VAT is reduced from 10% to 8% and the selling price after VAT is reduced by the VAT reduction amount.

(3) The selling price of the product that is reduced in (2) includes:
a) Selling price for Distributors
b) Selling price for Agents
c) Recommended retail price
d) Retail prices at SNB Showrooms on ALL sales channels (Stores, websites, Facebook, e-commerce platforms…)

5. Which groups of products and goods are NOT eligible for VAT reduction under Decree 15?

Please refer to the content of Decree 15 and Appendix I, II and III of Decree 15 HERE.”

6. I am an individual business household that buys products from SNB, how will Decree 15 affect my tax liability?

Regarding the VAT reduction corresponding to the type of business, please refer to Clause 2, Article 1, Decree 15.

For the order and procedures, please refer to Clause 3 of Article 1, Decree 15.

At the same time, you can contact the nearest tax authority for detailed instructions on related tax obligations.

7. How will the commercial conditions regarding SNB’s goods distribution be affected by Decree 15?

Decree 15 clearly states that the reduction only happens in VAT, which does not affect the selling price of goods and services before tax. Therefore, the commercial conditions, sales targets and sales bonuses when distributing and retailing SNB’s goods will remain the same for sales before VAT and be adjusted by the VAT reduction amount according to Decree 15 for sales after VAT.

Please contact the sales person in charge for detailed instructions on these changes.

8. Will end consumers who buy goods at SOC&BROTHERS Showrooms enjoy price reduction under Decree 15?

Yes, end consumers who buy goods in the list of goods eligible for tax reduction under Decree 15 will receive a corresponding discount according to the reduced VAT amount. This is shown in retail invoices and VAT invoices.

Please contact the sales staff at the store for detailed instructions

9. Why do I see some non-discounted goods at SOC&BROTHERS Showrooms?

These goods may not be on the list of products eligible for VAT reduction according to Decree 15

Please contact the sales staff at the store for detailed instructions or refer to the content of Decree 15 and Appendix I, II, III