Vietnam issues new VAT guidance

The Vietnamese VAT office has recently published compliance guidance for a number of areas.  These include:

• Where businesses categorised as Export Processing Enterprise use the VAT deduction method on their exports, they must ensure that the domestic supply properly the customs declaration.  This enables the application of the reduced VAT rate.
• Transport businesses should use either VAT or export invoices with domestic customers
• Banks may levy zero VAT on the credit and card processing services