Proposed Amendments to Value Added Tax Law: Key Points to Note

During the Government's specialized session on legal construction in April 2024, discussions were held and opinions were sought for the draft amendment to the Value Added Tax (VAT) Law, which will be submitted to the National Assembly during its 7th session in May 2024. Below are some key points to note regarding this draft law:

1. Exempted Entities from VAT: It is essential to thoroughly review all goods and services/categories of goods and services exempt from VAT to ensure consistency and alignment with sector-specific regulations. Where necessary, consideration may be given to adding certain types of goods and services to the list of VAT-exempt items to meet practical requirements and ensure the true essence of VAT-exempt goods and services.
   

2. Export Services Subject to 0% Tax Rate: Researching criteria, classification principles, and identifying export services is crucial to establishing a basis for determining cases where a 0% tax rate applies to export services. This ensures fairness and aligns with the nature of export services while harmonizing state management requirements with the interests of businesses in the export sector.
   

3. VAT Refund: Thoroughly reviewing provisions regarding cases and conditions for VAT refunds is necessary to ensure rationality, feasibility, transparency, and convenience for citizens and businesses. Studying provisions on VAT refunds concerning cases where businesses undergo ownership changes, transformations, mergers, consolidations, divisions, and terminations, is crucial to ensure feasibility.
   

These provisions are stipulated in Government Resolution No. 49/NQ-CP dated April 17, 2024, regarding the specialized session on legal construction in April 2024 (3 pages).

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