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How do VAT rates vary?

 

Currently, there are three rates of VAT, being 0% (applicable mainly to exported goods), 5% (the concessionary rate) and 10% (the common rate).

 
Are there any VAT exemptions?

 

The current VAT Law lists numerous goods and services which are not subject to VAT. These include, amongst others, machinery and equipment not locally producible which are imported to form fixed assets of the business, credit services, life insurance, medical services, education, non-refundable aid, international transportation, technology transfer and software and related services.

 
What are the requirements for registration and declaration of VAT?

 

An FDI Enterprise is required to register for payment of VAT with the local taxation authorities where it is located. There are a number of documents and standard forms required for this purpose as stated under the regulations on VAT.

Before 1 July 2013, VAT is to be declared provisionally on a monthly basis, and paid to the State Treasury in accordance with the notice issued by the tax office, and in any event no later than the 20th day of the following month.

From 1 July 2013, companies having revenue[1] of previous year not over VND 20 billion are eligible for quarterly VAT declaration. Newly established ones must declare monthly as current regulation. After 12 months of operation, the condition for application of quarterly basis will be applied as above.



[1] Total revenue on the tax declarations in the year of the company

 
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