 |
| The scope of VAT payers will also cover institutions being operators of foreign digital platforms that credit and pay VAT on behalf of foreign suppliers__Photo: VNA |
From July 1, foreign suppliers without permanent establishments in Vietnam that sell goods or provide services to the country via e-commerce channels or other digital platforms will be liable to value-added tax (VAT), according to the 2024 VAT Law.
Also provided in the Law, the scope of VAT payers will also cover institutions being operators of foreign digital platforms that credit and pay VAT on behalf of foreign suppliers and organizations being operators of e-commerce platforms and digital platforms with payment functions that credit, declare and pay tax on behalf of households and individuals doing business on their platforms. Organizations doing business in Vietnam and applying the VAT credit method to calculate their payable VAT amounts, when purchasing services from foreign suppliers without permanent establishments in Vietnam via e-commerce channels or digital platforms and crediting and paying tax on behalf of these foreign suppliers, will also become VAT payers.
Regarding objects not liable to VAT, the law adds more items into the list of non-taxable objects, including (i) charges specified in loan agreements between the Vietnamese Government and foreign lenders; (ii) goods imported from abroad by financial leasing companies and transported directly to non-tariff zones for lease to enterprises operating in non-tariff zones; (iii) goods imported in support of the prevention, control and mitigation of consequences of disasters, epidemics and wars; and (iv) law-prescribed national relics, antiques and treasures imported by competent state agencies.
Another noteworthy point of the Law is the provision raising the turnover threshold for business households and individuals to be liable to VAT to VND 200 million, from the current VND 100 million.- (VLLF)
