How to Invoice When VAT Reduction Applies?

For businesses paying VAT by the direct method, sales invoices must show the full pre-reduction amount and clearly state the reduced amount as required by Decree 174/2025/NĐ-CP.
Even if the contract or annex already states a price after VAT reduction, the invoice still must follow the prescribed format and note the tax reduction.
VAT taxable revenue should be declared based on the full value before reduction, not the reduced contract value.
The Sơn La tax authority issued this guidance for taxpayers to follow.

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.