Amendment to the Value-Added Tax Law of 2013: Direct Calculation Method on Value-Added Tax

To be specific, according to Clause 5, Article 1 of the Value-Added Tax Law amended in 2013, amending and supplementing Article 11 of the 2008 Value-Added Tax Law, the method of direct calculation based on added value is stipulated as follows:

- The payable value-added tax according to the method of direct calculation on added value is the added value multiplied by the value-added tax rate applicable to the purchase, sale, and manufacturing of gold, silver, and precious stones.

The added value of gold, silver, and precious stones is determined by the payment price of sold gold, silver, and precious stones minus the payment price of purchased gold, silver, and precious stones, respectively.

- The payable value-added tax according to the method of direct calculation on added value is the percentage rate multiplied by the revenue as follows:

- Applicable subjects:
- Enterprises and cooperatives with annual revenue below the revenue threshold of one billion VND, except for cases of voluntary registration to apply the tax deduction method as stipulated in Clause 2, Article 10 of the 2008 Value-Added Tax Law;
- Households and individual businesses;
- Foreign organizations and individuals doing business without a permanent establishment in Vietnam but generating revenue arising in Vietnam, and not fully implementing accounting, invoicing, and documentary policies, except for foreign organizations and individuals providing goods and services for carrying out activities of search, exploration, development, and exploitation of oil and gas, who pay tax by the deductive method withheld and paid by the Vietnamese party;
- Other economic organizations, except for cases of registration to pay tax by the deductive method as stipulated in Clause 2, Article 10 of the 2008 Value-Added Tax Law;
- The percentage rates for calculating value-added tax are stipulated as follows:- Distribution and supply of goods: 1%;- Services and construction without materials: 5%;- Production, transportation, services associated with goods, construction with materials: 3%;- Other business activities: 2%.

See also: 2013 Amended Value-Added Tax Law effective on January 1, 2014.

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