Implementation of the Law on Value Added Tax – Vietnam Law Insight

Circular No.193/2015/TT-BTC amending Circular No.219/2103/TT_BTC guiding implementation of the law on value added tax

 

On 24th November 2015, Ministry of Finance issued Circular No. 193/2015/TT-BTC (hereinafter referred as “Circular 193”) amending Circular No. 219/2013/TT-BTC (hereinafter referred as “Circular 219”) guiding implementation of the Law on Value-Added Tax and Decree No. 209/2013/ND-CP detailing and guiding implementation of some articles of Value-Added Tax issued by Minister of Finance Ministry.

The Circular 193 supplements one (01) exemption of declaration and payment of the value added tax (hereinafter referred as “VAT”). Therefrom, organizations, enterprises who receive remunerations from state agencies by collecting, paying such remunerations on behalf of the state agencies shall not be obliged to declare and pay VAT relating to such remuneration.

In details, such exempted remunerations have to be collected and paid on behalf of the state agencies from the following activities: collecting from voluntary social insurance, voluntary medical insurance for Social Insurance agencies, paying preferential allowances for people contributed to revolution, other allowances for Ministry of Labor – Invalids and Social Affairs; collecting tax of households for tax agencies and other remunerations collected, paid on behalf of the state agencies for the State agencies.

Such exemption is mentioned in item h Clause 7 Article 5 of the Circular 219. The Circular 193 shall take effect on 10th January 2016.

By Vietnam Law Insight

Disclaimer: This Briefing is for information purposes only. Its contents do not constitute legal advice and should not be regarded as detailed advice in individual cases. For more information, please contact us at info@LNTpartners.com or our website http://www.LNTpartners.com

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