Vietnam VAT compliance update

Wed 10th Jul 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  • The problematic new VAT service rules have been withdrawn, and the former nil VAT charge has been reinstated.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 includes the rule that the service use and enjoyment must be outside of Vietnam to qualify as a zero-rated export