30% VAT reduction from 1 November to 31 December 2021

30% VAT reduction from 1 November to 31 December 2021:

the decree confirms the scope of eligible services as in the resolution, including transport services, accommodation/lodging, food services, tourism services, publishing services, etc., and also provides a detailed list of specific eligible services in an appendix to the decree, including the specific code numbers;
the application of the 30% reduction depends on the VAT method of the taxpayer:
- where a taxpayer calculates VAT based on the credit method, a 30% reduction in the VAT rate may be applied directly to the qualifying supplies, with the invoice to be issued with the VAT rate line stating the prescribed rate (10% or 5%) x 70%; and
- where a taxpayer calculates VAT based on the percentage of revenue/turnover method (direct method), a 30% reduction in the percentage rate may be applied to calculate the VAT on qualifying supplies, with the invoice to be issued including note of the 30% reduction in the percentage rate used to calculate the VAT;
where different goods and services are supplied, separate invoices must be issued for supplies qualifying for the 30% reduction; and
if an invoice has been issued and paid for an eligible supply without the 30% reduction, the seller and buyer must agree in writing to the error and an adjusted invoice to correct the error must be issued

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