On 5th March 2024, the National Assembly issued the Draft Law on Value Added Tax. Basically, the draft Law on Value Added Tax is still inherited from the current Law but has been revised and supplemented to suit the policy content.
Accordingly, the draft Law retains the content specified in 04 Articles of the current VAT Law, including: scope of adjustment (Article 1); VAT (Article 2); Taxable subjects (Article 3); Tax basis (Article 6).
Amending and supplementing the contents specified in 10 Articles of the current VAT Law include: taxpayers (Article 4); non-taxable subjects (Article 5); taxable price (Article 7); tax rate (Article 8); tax deduction method (Article 10); direct calculation method based on VAT (Article 11); Input VAT deduction (Article 12); tax refund cases (Article 13); enforcement effect (Article 15); implementation organization (Article 16).
Notably, it is necessary to note the provisions on subjects not subject to VAT as follows:
- Maintain the regulation that credit services are not subject to VAT. However, determining whether the services of credit institutions are subject to VAT or not subject to VAT will be based on the provisions of law on credit institutions, instead of being listed in detail in the VAT Law;
- Narrowing subjects not subject to VAT in securities trading activities on the basis of synchronization with securities trading services prescribed in the Securities Law. Other securities activities not specifically mentioned in the draft revised law will no longer be subject to VAT;
- Specify transactions considered to be capital transfers that are not subject to VAT, to distinguish them from investment project transfers and asset sales that are subject to VAT;
- Clearly stipulate debt selling activities that are not subject to VAT, including debt selling activities and receivables sales of business establishments;
- Supplementing the regulations that imported goods of financial leasing companies for financial leasing to businesses in the non-tariff zone are not subject to VAT;
- Supplementing regulations "Imported goods to support and finance the prevention of natural disasters, epidemics, and wars according to Government regulations" and "Goods purchased, sold, and exchanged to serve production, Consumption of border residents on the List of goods purchased, sold and exchanged by border residents according to the provisions of law and within the import tax exemption norms" is not subject to VAT.
Read more >> Proposal to develop a Law on Special Consumption Tax (amended)
