Vietnam VAT export and invoices changes

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.

• 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