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Vietnam VAT update

  • VAT
  • 10 April 2016 | Richard Asquith

Vietnam VAT update

Vietnam’s National Assembly has this month approved changes to the VAT laws, including modifications to the import Special Consumption Tax.

The changes include:

  • Certain agriculture-related businesses are to become VAT nil-rated, allowing them not to charge VAT, but recover any input VAT suffered
  • The period for the application of VAT credits has been shortened from 12 months to the period of the next VAT return declaration
  • Mineral exporters are exempted from VAT
  • The supply of nursing and care services are exempted from VAT
  • Penalty interest on overdue VAT payments has been reduced to 0.03% per day of the VAT due
  • Related party transactions incurring the Special Consumption Tax on imports face new rules of determining the taxable base to prevent abusive practices

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 this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.