This August 2016 edition of our Tax Update publication looks at significant changes to Value Added Tax (“VAT”) refunds and associated regulations for taxpayers in Vietnam, along with discussions on recent Official Letters released by tax authorities covering Personal Income Tax, Corporate Income Tax and VAT.
VALUE ADDED TAX – CHANGES TO REFUND PROCESSES AND ADMINISTRATIVE MATTERS
There have been a number of regulatory changes to VAT in recent months that together make significant changes to VAT refunds and associated procedures.
The National Assembly enacted Law No. 106/2016/QH13 on 6 April 2016, which was followed by the Government issuing Decree 100/2016/ND-CP on 1 July 2016 and the Ministry of Finance issuing Official Letter 10315/BTC-TCT on 25 July 2016. The key effects of these releases on VAT are:
Additional Services not subject to VAT
– Enterprises that buy and sell agricultural products that have only had basic treatments applied (cleaned, dried, de-seeded, etc) are not required to declare or pay VAT on outputs, but can claim VAT credits for inputs,
– Services provided in caring for seniors or disabled people are not subject to VAT, and – Exported natural resources, where the total value (including energy expenses) exceed 51%, are not subject to VAT.
For more information, click Vietnam Tax Update August 2016 – Domicile.
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