Proposed Amendment to VAT Law by Ministry of Finance to address inconsistencies and complexities

• The Ministry of Finance is proposing amendments to the Value Added Tax Law to address inconsistencies and complexities in the current tax system.
• The Value Added Tax Law has been in effect since 2009 and has achieved significant results.
• Despite economic difficulties, the revenue from value added tax has remained stable and accounted for a high proportion of total revenue.
• There are limitations in the current tax policy, including a large number of tax-exempt goods and services, inappropriate tax rates for certain goods, and discrepancies in the interpretation of tax regulations.
• Adjustments are needed for the threshold of tax-exempt sales and the calculation of tax for real estate business activities.
• Stricter regulations are necessary to prevent tax fraud and ensure proper deduction and refund of value added tax.
• Consideration should be given to refunding value added tax for businesses that supply goods and services subject to a 5% tax rate but incur mainly a 10% tax rate.
• Amendments should be made to the refund regulations for investment projects to address practical issues and facilitate business investment and innovation.

Source: baochinhphu.vn

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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