How to calculate VAT is determined by what formula and what to note when calculating VAT for goods/services are always concerns of many businesses. Let’s join MISA meInvoice to learn the article below to better understand the VAT calculation formula for each specific case.
Table of Contents Hide
1. Current VAT tax rate
2. Specific formula and calculation of VAT
2.1. How to calculate VAT forward
2.2. How to calculate reverse VAT
3. How is reverse VAT calculation different from regular VAT calculation?
1. Current VAT tax rate
According to the provisions of Articles 9, 10 and 11 of Circular 219/2013/TT-BTC , VAT is currently applied at 3 rates: 0%, 5% and 10%.
In addition, according to Decree 72/2024/ND-CP regulating the VAT reduction policy according to Resolution 142/2024/QH15, some cases of goods and services will have their tax reduced from 10% to 8% from July 1, 2024 to December 31, 2024 to implement economic development policies in different stages.
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2. Specific formula and calculation of VAT
2.1. How to calculate VAT forward
Calculate VAT by deduction method
Calculating VAT by the deduction method is applied to production and business establishments that fully implement accounting, invoice and voucher regimes according to legal regulations, including:
Business establishments with annual revenue from selling goods and providing services of 1 billion VND or more.
Business establishments voluntarily regis 2024 oman telegram users library ter to apply the tax deduction method.
Foreign organizations and individuals providing goods and services to conduct oil and gas exploration, development and exploitation activities shall pay tax according to the deduction method declared,
deducted and paid by the Vietnamese party on their behalf
A newly established branch of an enter chatbots can help answer customer questions prise or one established from an investment project of an enterprise that is paying tax using the deduction method and the branch is subject to separate VAT decl cz lists aration, the branch also applies the deduction method to declare and pay VAT.
The amount of VAT payable by deduction method is determined according to the formula:
The output VAT amount is equal to the total VAT amount of goods and services sold recorded on the VAT invoice and is determined by multiplying the taxable price of taxable goods and services sold by the
VAT rate of those goods and services.
The deductible input VAT amount is equal to the total VAT amount recorded on VAT invoices for purchasing goods, services, and fixed assets; on VAT payment vouchers for imported goods; on VAT payment vouchers on behalf of foreign parties and fully meeting the conditions for input tax deduction.
>> Read more: Calculating VAT by deduction method – How to calculate value added tax (P2)
For gold, silver and precious stone. Trading and processing activities: business establishments that trade .and process gold, silver and precious stone.
Pursuant to article .11 of the law on value added tax 2008 (amended by clause 5. Article 1 of the law on value added tax. Amended in 2013), the formula for determining .the amount of vat payable for this. Subject is determined as follows.
