What is the VAT rate for export service providers in Vietnam?

What is the VAT rate for export service providers in Vietnam?

Pursuant to Clause 1, Article 8 of the Law on Value-Added Tax 2008, amended by Clause 3, Article 1 of the Amended Law on Value-Added Tax 2013, and Point g, amended by this clause in Law No. 31/2013/QH13, now amended by Clause 2, Article 1 of Law No. 106/2016/QH13 as follows:

Tax rate

1. The 0% tax rate applies to exported goods and services, international transportation, and goods and services not subject to value-added tax stipulated in Article 5 of this Law when exported, except for the following cases:

a) Transfer of technology, transfer of intellectual property rights abroad;

b) Reinsurance services abroad;

c) Credit granting services;

d) Capital transfer;

đ) Derivative financial services;

e) Postal and telecommunications services;

g) Exported products as prescribed in Clause 23, Article 5 of this Law.

Exported goods and services are goods and services consumed outside of Vietnam, in a non-tariff zone; goods and services provided to foreign customers as stipulated by the Government of Vietnam.

Thus, it can be seen that export service providers are subject to a 0% value-added tax rate with exceptions as stipulated above.

How many methods are there for calculating value-added tax?

Pursuant to Article 9 of the Law on Value-Added Tax 2008, it is stipulated as follows:

Tax calculation methods

The methods for calculating value-added tax include the credit method and the direct method on added value.

Thus, it can be seen that there are 2 methods for calculating value-added tax:

[1] The credit method.

[2] The direct method on added value.

What is the VAT rate for export service providers in Vietnam? (Image from the Internet)

How to collect and process information for risk management in the selection of VAT declarations in Vietnam?

Pursuant to Article 4 of Decision 98/QD-TCT year 2024 on the process of applying risk management to select VAT, corporate income tax, and special consumption tax declarations for inspection at the tax office as follows:

- The tax authority conducts the collection, updating, and processing of information to ensure completeness, accuracy, and promptness before analyzing risks and selecting VAT, CIT, and SCT dossiers of taxpayers for inspection at the tax office.

- Information used for analysis, risk assessment, and selection of VAT, CIT, and SCT dossiers of taxpayers for inspection at the tax office is collected from the tax sector's database, centrally managed by the General Department of Taxation via information technology applications, and processed, shared, and provided to tax agencies at all levels for tax management according to legal regulations.

- The tax authority, tax officials collect and process information according to the process of information collection and exploitation for risk management in tax management issued under Decision 86/QD-TCT dated February 8, 2023, of the Director-General of the General Department of Taxation.

What are the regulations on using the index criteria for selecting VAT declarations in Vietnam?

Pursuant to Article 5 of Decision 98/QD-TCT year 2024 on the process of applying risk management to select VAT, corporate income tax, and special consumption tax declarations for inspection at the tax office as follows:

The Risk Management Board and the Information Technology Department under the General Department of Taxation use risk assessment index criteria issued by the General Department of Taxation for application in risk management when selecting VAT, CIT, and SCT dossiers for inspection at the tax office as follows:

The index criteria for selecting VAT, CIT, and SCT dossiers with risk indicators for inspection at the tax office are issued under Decision No. 1582/QD-TCT dated October 6, 2022, by the Director-General of the General Department of Taxation and uniformly applied nationwide for form No. 01/GTGT Download,

03/TNDN Download, 01/TTDB Download issued along with Circular No. 80/2021/TT-BTC dated September 29, 2021, of the Minister of Finance. In case the index criteria are amended, supplemented, or replaced, the amended, supplemented, or replaced index criteria shall apply.

During the implementation process, if the Tax Department proposes to supplement or amend criteria to suit tax management, the Tax Department shall send a written proposal to the General Department of Taxation (Risk Management Board) specifying the reason, basis for establishing criteria; calculation formula; scores, and weights of each criterion.

According to tax management requirements in each period, the General Department of Taxation issues documents amending or supplementing the index criteria. The Risk Management Board shall lead cooperation with departments/units/Tax Departments to research and advise the Director-General of the General Department of Taxation to issue supplemental or adjustment measures for risk analysis index criteria.

The Information Technology Department under the General Department of Taxation is responsible for developing and upgrading relevant software applications to include the index criteria issued by the General Department of Taxation into risk management applications for analyzing and evaluating the selection of VAT, CIT, and SCT dossiers with risk indicators for inspection at the tax office.