E-Invoices from Cash Registers and VAT Rate for Metal Door Knobs (HS Code 259302)
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The Dong Nai Tax Department responded to two company questions. First, on cash register e-invoices: a business that primarily serves enterprises under contracts and only occasionally has customers who do not want invoices is not required to use cash register-generated e-invoices. Second, on VAT rate for metal door knobs NEWNEO 5881 (HS-equivalent code 259302 - metal locks and hinges): the tax authority directed the company to check the list of goods not eligible for VAT reduction under Decree 174/2025/ND-CP. If the product is not in Annex 1 or Annex 2 of Decree 174/2025/ND-CP, it qualifies for the reduced 8% VAT rate. Businesses must cross-reference their product code against the annexes of Decree 174/2025/ND-CP and Resolution 43/2018/QH14 to determine the correct applicable rate. If product code 259302 is absent from Annexes 1 and 2, the VAT rate is reduced from 10% to 8%.
Cash Register E-Invoices and VAT Rate for Metal Hardware Products
Responding authority: Dong Nai Province Tax Department
Question 1: Cash Register-Generated E-Invoices
Legal Basis:
- Article 12 of Decree 70/2025/ND-CP dated 30/04/2025
- Circular No. 32/2025/TT-BTC dated 19/3/2025 of the Ministry of Finance
- Decree 123/2020/ND-CP on invoices and documents
Guidance:
Cash register-generated e-invoices are required for businesses that retail goods or provide services directly to end consumers on a frequent and continuous basis.
A business that primarily provides services to enterprises under contracts and only occasionally encounters customers who do not request invoices or cannot provide full invoice information does not fall under the mandatory requirement to use cash register-generated e-invoices.
Question 2: VAT Rate for Metal Door Knob NEWNEO 5881
Legal Basis:
- Decree No. 174/2025/ND-CP
- Resolution No. 43/2018/QH14
Product code under review: 259302 (Metal locks and hinges)
Guidance:
The company must check the product against the List of Goods and Services Not Eligible for VAT Reduction in Annexes 1 and 2 of Decree 174/2025/ND-CP:
- If the product code appears in the Annexes: no reduction, standard 10% VAT applies
- If the product code is absent from Annexes 1 and 2: the reduced VAT rate of 8% applies
Businesses must cross-reference their product code against the domestic manufactured goods catalogue issued with Decision 43/2018/QD-TTg and the annexes to Decree 174/2025/ND-CP.