The lawyer answered the interview about VAT
At 20:00 pm on December 10, 2019, HTV Television broadcast the current news with the topic of Value Added Tax interviewed by Lawyer Nguyen Van Quynh, a Partner of Global Vietnam Lawyers (GV Lawyers) to update the important legal opinions.
There are currently three types of taxes: corporate income tax, value added tax and import-export tax, which account for more than 70% of Vietnam’s total revenue from taxes and fees. Value-added tax (VAT) is even becoming a major source of tax revenue, exceeding revenue from corporate income tax and continuously increasing from 2013 to the present. However, enterprises which are considered as subjects only play the role of collecting value-added tax, arguing that some outstanding shortcomings are accidentally binding them.
In the context of fierce competition today, noted from a long-term export business in the city. Ho Chi Minh, Mr. Nguyen Van Tri – Director of Lap Phuc Co., Ltd said, “If you import a device worth 10 billion, then 10% more VAT is about 1 billion. Borrowing money to buy equipment was difficult, and I had to borrow an additional 10% to pay VAT. After that, even if it is deducted, however, from the time of submission to the time of deduction, interest on the bank must be paid. If so, what we collect to do more burden for businesses.
Not only that, the two basic methods of tax collection are now direct and deductible. Particularly, the method of direct tax calculation on goods and services does not reflect the nature and characteristics of value-added tax. Even curb the competitiveness of businesses.
Lawyer Nguyen Van Quynh of Global Vietnam Lawyers (GV Lawyers) shared: “The person who is subject to VAT is the buyer of those goods and services, not the business. But such a tax calculation is invisible on the corporate revenue, so the feeling of tax superposition and tax recovery is real”.
Master Kieu Anh Vu – Director of KAV Lawyers Law Firm said: “The 10% figure in such a context, even with 20% corporate income tax, the total figure is 30%. All taxes and other financial costs are included in the price of goods and services. And in the end, consumers are the ones who suffer the most. ”
Not long ago, the Ministry of Finance indicated a proposal to increase the value added tax on goods and services, which faced a fierce response from the business community due to concerns about price increase of goods affecting the supply and demand of the market.
In fact, the maximum VAT of 10% in Vietnam is not currently the highest value-added tax rate of many other countries. Enterprises are ready to well fulfill their tax payment obligations if the Law on Value Added Tax is guaranteed to be properly and fairly enforced.