Vietnam VAT changes
Fri 21st Mar 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 between bank accounts are only valid when both bank accounts are fully registered with tax office
- Sales to local customers of goods which are exported are now VAT exempt
- The following taxable supplies are now exempt from VAT: the disposal of loan collateral on defaults; and imports of goods for the use in medical goods manufacturing.
- Vietnamese branches of companies which are set-up export processing may now be treated as VAT registered
- Promotional or complimentary supplies of goods are zero rated for VAT.