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Vietnam VAT changes

  • Mar 19, 2014 | Richard Asquith

Vietnam VAT changes

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.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.