Uni 04-07-2013 - Guidance of amendment and addition to Law on VAT

National assembly has just issued Law No. 31/2013/QH13 in guidance of amendment and addition to Law on VAT. In which, some changes should be paid attentions as follows:

• Goods and services provided by business households and individuals that earn annual revenue of less than 100 million VND are not subjected VAT.
• In case, enterprises find that the input VAT is declared or deducted incorrectly, it may be rectified before the tax authority issues a decision on tax inspection at the premises.
• If the input VAT is not completely deducted after at least 12 months or 4 quarters from the month or the quarter in which the non-deducted VAT arises, the business establishment shall receive a tax refund.
• In case, enterprises use the deduction method has a new project of investment, the VAT on goods and services purchased during the investment is not deducted, and the remaining tax is 300 million VND or higher, the establishment shall receive a tax refund.
• The regulations on the tax rate of 5% on the sale, lease, and hire purchase of social housing takes effect on July 01, 2013.
• The 10% VAT on the sale, lease, and hire purchase of commercial housing, which is finished apartments smaller than 70 m2 that are sold at below 15 million VND/m2, shall be reduced by 50% from July 01, 2013 until the end of June 30, 2014.
• This Law takes effects from 01 January 2014