Some changes have been made to the VAT regime in Vietnam, effective from January 2014. An important change relates to branches of export processing enterprises, which are being brought within the VAT regime. These enterprises will now be required to declare and pay VAT on imported goods at the point of import and will be required to charge VAT when the goods are sold.
Where input VAT is claimed in respect of amounts transferred between bank accounts the evidence will only be valid if the bank accounts are correctly registered with the VAT authorities. Other changes include an exemption for sales to local customers of goods that are subsequently exported and an exemption on the disposal of loan collateral in the case of a default. Imports of goods for use in the manufacture of medical goods are also to be exempt. Promotional supplies of goods are to be zero rated.
