Vietnam: What are the VAT-related laws applied in 2024? What are the effective decrees and circulars on elaboration of VAT-related laws?
In Vietnam, what are the VAT-related laws applied in 2024?
Up to now, there is no new information or documents on the promulgation of the new Law in VAT. Therefore, in 2024, the following VAT-related laws will be applied:
- Law on Value Added Tax 2008 (still in force)
- Law on Amendments to Law on Value Added Tax, the Law on Excise Tax and the Law on Tax Administration 2016 (still in force)
- Law on Amendments to Tax Laws 2014 (still in force)
- Law on Amendments to Law on Value Added Tax 2013 (still in force)
According to information from the e-commerce portal of the General Department of Taxation in Vietnam, at the 28th meeting of the National Assembly Standing Committee, the National Assembly Standing Committee will consider the proposal to add several law projects to the 2024 Law and Ordinance Making Program, including the Law on amendments to Law on VAT.
Accordingly, the Ministry of Finance proposed 4 groups of policies in the proposal to formulate the Law on amendments to Law on VAT, including:
Policy 1: Expand the tax base (reduce goods and services not subject to VAT, goods and services subject to the VAT rate of 5%). The solution is to study amendments and supplements specified in Article 5 of the Law on VAT to reduce goods and services not subject to VAT (transfer some goods and services to be subject to the VAT rate of 5% or 10%); study amendments and supplements to Article 8 of the Law on VAT to reduce goods and services subject to the VAT rate of 5% (transfer some goods and services to be subject to the VAT rate of 10%).
Policy 2: Amend and supplement to ensure the removal of difficulties for production and business activities, and reform administrative procedures. This policy aims to promote non-cash payments and prevent fraud in VAT withholding, refund, anti-money laundering, and limit fraud to misappropriate State tax amounts.
Policy 3: Amend to ensure uniformity of the legal system. The solution proposed by the Ministry of Finance is to study amendments and supplements to the provisions of Articles 5 and 7 of the Law on VAT to amend and supplement several regulations on non-taxable goods and services and taxable prices to synchronize with the provisions of other relevant laws (Law on export tax, import duties; Excise Tax Law; Horticultural Law; Securities Law).
Policy 4: Amend to ensure conformity with international practices and development trends; study amendments and supplements to the provisions of Article 8 of the Law on VAT to amend and supplement regulations on tax rates for export services to avoid problems in implementation; study the application of appropriate universal tax rates.
Thus, up to now, the Ministry of Finance has only proposed policies to formulate the Law on amendments to the Law on VAT and there has not been a draft Law on amendments to the Law on VAT.
What are the effective decrees on elaboration of VAT-related laws in Vietnam?
Accordingly, the effective decrees on elaboration of VAT-related laws in Vietnam include:
- Decree 49/2022/ND-CP on Amendments to Decree No. 209/2013/ND-CP elaborating and guiding the implementation of certain Articles of the Law on Value-Added Tax amended by Decree No. 12/2015/ND-CP , Decree No. 100/2016/ND-CP , and Decree No. 146/2017/ND-CP
- Decree 146/2017/ND-CP on amendments to certain articles of Decree No. 100/2016/ND-CP and Decree No.12/2015/ND-CP
- Decree 12/2015/ND-CP on elaboration of the Law on Amendments to tax laws and amendments to some Articles of Decrees on taxations.
- Decree 91/2014/ND-CP on amendments to Decrees on taxation
- Decree 209/2013/ND-CP on elaboration of the Law on Value Added Tax
- Decree 100/2016/ND-CP on elaboration of the Law on Amendments to Law on Value Added Tax, the Law on Excise Tax and the Law on Tax Administration 2016
What are the effective circulars on elaboration of VAT-related laws in Vietnam?
Accordingly, the effective circulars on elaboration of VAT-related laws in Vietnam include:
- Circular 43/2021/TT-BTC on amendment to Clause 11 Article 10 of Circular No. 219/2013/TT-BTC guiding implementation of Law on Value-Added Tax and Decree No. 209/2013/ND-CP on elaborating to Law on Value-Added Tax (and amendment thereto under Circular No. 26/2015/TT-BTC dated February 27, 2015 of Ministry of Finance), issued by the Minister of Finance
- Circular 93/2017/TT-BTC on amendments to Clause 3 and Clause 4 Article 12 of Circular No. 219/2013/TT-BTC (amended in Circular No. 119/2014/TT-BTC dated August 25, 2914); abrogation of Clause 7 Article 11 of Circular No. 156/2013/TT-BTC, issued by the Minister of Finance
- Circular 173/2016/TT-BTC amending the first paragraph of Clause 3, Article 15 of Circular 219/2013/TT-BTC (amended under Circular 119/2014/TT-BTC, 151/2014/TT-BTC, 26/2015/TT-BTC) issued by the Minister of Finance
- Circular 92/2015/TT-BTC on guidelines for vat and personal income tax incurred by residents doing business, amendments to some articles on personal income tax of the Law No. 71/2014/QH13 on the amendments to tax Laws and the Government's Decree No. 12/2015/NĐ-CP on guidelines for the Law on the amendments to tax Laws and Decrees on taxation.
- Circular 26/2015/TT-BTC guiding value-added tax and tax administration in Decree 12/2015/ND-CP, amending Circular 39/2014/TT-BTC on guidelines for VAT, tax administration, and invoices for goods sale and service provision, issued by the Ministry of Finance
- Circular 151/2014/TT-BTC on guidance on implementation of Decree No. 91/2014/ND-CP on amendments to Decrees on taxation
- Circular 119/2014/TT-BTC on amendments to Circulars 156/2013/TT-BTC, 111/2013/TT-BTC, 219/2013/TT-BTC, 08/2013/TT-BTC, 85/2011/TT-BTC, 39/2014/TT-BTC and 78/2014/TT-BTC to reform and simplify tax administrative procedures, issued by the Minister of Finance
- Circular 219/2013/TT-BTC guidance on implementation of the Law on Value-added tax, issued by the Minister of Finance
- Circular 150/2010/TT-BTC guiding value-added tax and corporate income for press agencies issued by the Ministry of Finance
- Circular 92/2019/TT-BTC amending Circular 72/2014/TT-BTC on the VAT refund VAT on goods of foreigners and overseas Vietnamese taken with them when they leave Vietnam, issued by the Minister of Finance
- Circular 72/2014/TT-BTC on the VAT refund on goods of foreigners and overseas Vietnamese taken with them when they leave Vietnam, issued by the Minister of Finance
What are the latest integrated documents on VAT in Vietnam?
- Integrated document 01/VBHN-VPQH in 2016 on VAT-related laws promulgated by the Office of the National Assembly
- Integrated document 16/VBHN-VPQH in 2014 on VAT-related laws promulgated by the Government Office
- Integrated document 05/VBHN-VPQH in 2013 on VAT-related laws promulgated by the Office of the National Assembly
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