VAT compliance services of S4B

VAT or Value Added Tax is among 5 of the fundamental taxes of any business. It is used worldwide in consumption tax system.

VAT is the value added to the products at each stage of manufacture or distribution, it is referred as the different levels of prices from the big suppliers to smaller retailers, or in another words, from the buying price and the selling price.

Sales taxes in the US and Good and Services Taxes in Canada and Australia are frequently misunderstood as the same as VAT in Europe, and in this case, in Vietnam. However, they are all carrying in out differently and are not the same.

Being in a country that used VAT in Taxing System, Vietnam also has its own impacts and setup on how the VAT should be added, time and how it is submitted and so on.

VAT is required to be registered by the organization or company providing services or products to taxing authorities. This will be varied among industries and sectors. Depending on the outcome services or item of consumption, VAT rates are ranging from 10 per cent to 0 per cent in Vietnam, which is considered as high in comparison to some ASEAN regions e.g. Malaysia, Thailand, etc. Nevertheless, it is also seen as low rate when it is generally put into the developed economic VAT rates. Having said that, the Ministry of Finance is currently taking project of considering to elevate the rate to 12 per cent from 2019 onwards. However, this is not yet finalized.

While VAT seems to be straightforward in theory, it is quite a complex practice in real settings. It is necessary in running the business legally but not the core content of any business, moreover, it can take away the company resources and profits when negotiating to complete the obligations.

In a more practical definition, VAT registered businesses must manage and process the VAT invoices in compliance with the local VAT laws and legislations. In general, there is obligation to:

– Record and maintain valid invoice which can be on paper or via professional software

– Keep copies of all sales issued including the cancelled or mistakenly produced ones

– Keep all purchased invoices regarding materials, tools or services that the company used

– Calculating on the right rate

– Show VAT information on the invoice

The ultimate target of the business is to fulfil all the requirements of Taxing System within any settings in which it is operating. To meet all the VAT obligations, having an ideal assistance is crucial to achieve VAT compliance.

Smart Solutions for Business Limited Company or S4B is an experienced accounting agency in Vietnam that can sort out the problems and offer the best solutions for taxing services, including VAT compliance.

S4B can cover the services such as VAT registration, declaration and regular submissions, statistical reports, and so on according to the client’s orders and requests.

With more than 10 years of practical experience and a team of high qualified accountants and relevant consultants, S4B can customized the best solutions for any company, especially those newly founded ones with a foreign based background.