The penalties for infringement of the Vietnamese VAT regime are to be increased. The new charges were published in Decree 129 which is summarized below:
The changes include:
• The new maximum fine for VAT reporting infringements is VND 200m.
• Also there is a new maximum penalty for withholding tax payments of 20% of the tax due. In cases of intentional VAT fraud, the penalties change to 100% to 300% of the amounts involved.
• Penalties may be liable in relation to infringements extending back up to 10 years for VAT registered businesses. There is no limit for unregistered VAT businesses.
• For delayed payments with VAT filings, the penalties will be 0.05% per day for an initial delay of up to 90 days, and then 0.07% thereafter.
The new rules come into effect on 15 December 2013.
