Vietnam VAT hike proposal

July 3rd, 2018

Vietnam’s government is considering a VAT rise from the current 10% standard and 5% reduced rates. The tax rise is required to meet commitments to reduce import tariffs. There are two proposals under review by the Finance Ministry: 1. Raise the standard rate from 10% to 12%, and the reduced rate from 5% to 6%; …


Vietnam VAT 12% proposal

August 25th, 2017

The Vietnamese Finance Ministry has proposed rising the VAT rate from 10% to 12%. If approved, the new rate would apply from 1 January 2019. In addition, there would be a further potential rise to 14% in 2021 according to the proposal.  


Vietnam Uber to pay VAT

September 16th, 2016

The Vietnamese government has ordered Uber to pay 3% VAT on its taxi services. It will also be required to pay 2% corporation tax.  The Finance Ministry concluded that Uber’s Dutch entity was acting as a non-resident trader liable to tax on local supplies. In addition, Uber taxi drivers are required to pay 3% VAT …


Vietnam VAT changes

April 29th, 2016

The Vietnamese General Department for Taxation has clarified two areas for VAT compliance Input VAT – there will be no provision for transport input VAT relief if sales agreement or invoice is signed after any export VAT on discounts – VAT invoices should be issued where vendors give purchases additional goods or stocks for bulk …


Vietnam VAT update

April 11th, 2016

Vietnam’s National Assembly has this month approved changes to the VAT laws, including modifications to the import Special Consumption Tax. The changes include: Certain agriculture-related businesses are to become VAT nil-rated, allowing them not to charge VAT, but recover any input VAT suffered The period for the application of VAT credits has been shortened from …


Vietnam VAT credits

March 22nd, 2016

The Vietnamese Finance Ministry is to speed-up the refunds of business VAT credits from this month. In particular, it is looking to stop local authorities from holding up hundreds of credits where any related infringements are immaterial. Or if companies have separate credits and liabilities with the state, and they cannot be offset for simplification. …


Vietnam VAT export and invoices changes

April 5th, 2014

Vietnam VAT export and invoices changes A number of new decrees have been issued providing for changes to the Vietnamese VAT regime. The changes cover VAT invoices and the export VAT rules. Key changes to the Vietnam VAT rules include: The existing non-PE rule for the customer to prove zero-rating on services has now been …


Vietnam VAT changes

March 21st, 2014

A number of changes to the Vietnamese VAT compliance regime have been introduced from the start of 2014. The principle changes are included below: Input VAT on imports into Vietnam for the purposes of seeking a deduction will now include VAT paid on importation. Evidence for the deductions of input which is based on transfers …


Vietnam increases VAT penalties

December 12th, 2013

The penalties for infringement of the Vietnamese VAT regime are to be increased in December 2013.  The new charges were published in Decree 129. The changes include: The new maximum fine for VAT reporting infringements is VND 200m There is a new maximum penalty for withholding tax payments of 20% of the tax due.  In …


Vietnam VAT compliance update

July 10th, 2013

Vietnam’s Value Added Tax regime has recently had a number of minor changes.  These include: The six month limit on deducting VAT inputs has been removed VAT is now levied on loans from non-authorised financial institutions The problematic new VAT service rules have been withdrawn, and the former nil VAT charge has been reinstated.  This …