The concept of VAT is originated in France and has been use widely since 1954, including the European, African, South American and some of the Asian countries.
Though there are approximately 130 countries using VAT presently, it is not there in the US and Canada, instead, Sales Taxes and Goods and Services Taxes are used respectively. Although concepts of the three are similar, they are not the same and are implementing differently.
In Vietnam, VAT laws and legislations had been developed and experienced for 5 years (from 1993 to 1997) before officially validated since 1999.
In the particular Vietnamese environment, VAT helps
– To avoid the reiteration of tax types during the manufactures and allocations, it is easier to administer compared to the previous Business taxes.
– To encourage sustainable development as it is much less burdened the company (i.e. small collection and frequently submitted), facilitate goods and services flows
– To reduce the tax evasion, optimize the taxing functions
Moreover, VAT is based on the value added and not on the price itself, hence, the price change is not remarkable or merely changed.
Having said that, the customers do not have to pay VAT at all stages of distributions or manufactures. As the products regulate from suppliers to retailers and smaller vendors, each of them will have to pay the VAT only on the value added at the stage, thus, the price is kept fair for all the buyers.
When a business that is liable to tax entering the Vietnamese market, it must register for tax payment within 10 days from the day of receiving the business license.
Following by monthly/quarterly VAT declaration and payment. Regarding the declaration, extra information, documents and valid invoices must be included to confirm the reports. Not to mention further tasks and process of justification may be required if the declarations are not congruence with evidence or company’s size and services, these can lead to unbearable functions for any new founded organizations.
Therefore, offering an external agency to handover VAT functions is one of the choices for the business.
Smart Solution for Business Limited Company or S4B is a high experienced and well practice company in Vietnam which emphasize its services on newly founded foreign based entrepreneurs.
With more than 10 years of concentrated practice in Vietnamese market, S4B is confident to bring about the optimal performance of taxing service to the clients, including Value Added Tax declaration and payment.
S4B has a high qualified team of accountants and consultants in many of industrial and business sectors that can professionally work on the clients’ orders. This will be translated into customized services offering per company’s requests, size of the business, types of products and its origin, etc.
Keeping the VAT at its most precise and time effective consistency can really enhance the business development as it helps the company avoid unnecessary legal burdens.
Importance
How to get it done
Service provider
S4B