Uni 19-02-2014 - Guidance on VAT

Ministry of Finance newly issued Circular No.219/2013/TT-BTC dated 31 December 2013 in guidance of VAT Law implementation from 01 January 2014 replacing Circular No.06/2012/TT-BTC and Circular No. 65/2013/TT-BTC. Some notes should be paid attentions as follows:

• Export processing enterprises are granted to perform import right to sell or export, EPEs must establish branch to conduct this activity, the branch must separately recognize and declare, pay VAT for this activity, not included the activity for export. When goods are imported to distribute (sell out), the branch declares, pays VAT at the import stage and when selling out (comprising export). EPEs use invoices to declare, pay VAT as prescribed
• Exports services are applied to 0% tax rate including services providing directly for oversea organizations, individuals and consumes in Vietnam; providing directly for oversea organizations, individuals in non-tariff zone and consumes in non-tariff zone.
• For products, goods and services used for promotions under the provisions of commercial law, the taxable value is determined by the zero (0) in case of that goods and services are used for promotions but not complied with the provisions of the commercial law, they must declare, calculate, pay tax as goods and services used for internal consumption or donation