- The Ministry of Finance in Vietnam is proposing amendments to the Law on Value Added Tax (VAT) to improve its enforcement.
- The existing VAT regulations have limitations after 15 years of implementation.
- There are 26 categories of goods and services not subject to VAT, resulting in high production costs and selling prices.
- There are three VAT rates (zero, five, and ten percent) that are not appropriate for different categories of products and services.
- The existing VAT regulations on real estate business cause discrepancies between tax authorities and payers.
- Regulations on input VAT deductions need to be tightened to prevent tax fraud.
- The ministry proposes amending the regulations to facilitate tax refunds and encourage investment and technology innovations.
- Individuals and business households with revenues of VNĐ150 million per year will have to pay higher VAT tax.
- Goods exchanges between residents in border areas will not be subject to VAT.
- Certain products, such as tobacco, alcohol, petrol, and automobiles, will not be exempt from VAT.
- The amendments aim to expand the tax base, increase tax management efficiency, prevent tax avoidance, and ensure stable revenue for the State budget.
- VAT accounts for more than 20 percent of budget revenue in Vietnam.
- The two percent VAT reduction policy has been extended until the end of June to promote post-pandemic growth.
Source: einnews.com
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.
