Vietnam VAT export and invoices changes

Sat 5th Apr 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 dropped; instead, there must be evidence that the services were consumed outside of Vietnam
  • Companies no longer have to produce special export invoices; instead regular sales invoices will suffice
  • Local branches set-up under the Export Processing Relief scheme must now complete a separate VAT return
  • All VAT invoices must be pre-numbered pro-forma’s purchased from the tax office – although there is an option to have approval to produce own invoices
  • Cash advances to suppliers must now include a 10% VAT charge