VAT registration threshold rise and other changes
The Vietnamese Ministry of Finance has released for public consultation a range of VAT changes. Once reviewed, these will pass to the National Assembly for approval.
The changes include:
- Rise in the VAT registration threshold to VND 150m from VND 100m
- Duty free goods confirmed as zero-rated exports
- Bring the following supplies within the 5% VAT rate band: certain machinery; agricultural equipment, fertilizer
- Limit supplies entitled to the zero-rating VAT
- Reduce the threshold for cash payments to VND 5m from VND 10m
- Changes to rights to deductions and credits
