EY Vietnam Tax Alert - May 2020: Value Added Tax treatment on the provision of letter of credit services

EY Vietnam Bản Tin Cập Nhật Thuế- Tháng 5 Năm 2020: Thuế Giá trị Gia tăng đối với hoạt động cung cấp dịch vụ thư tín dụng

EY Vietnam

From 31 July 2019, the Ministry of Finance and the General Department of Taxation have issued a number of official letters advising that the provision of letter of credit services of credit institutions is subject to VAT. However, before these recent letters, the tax authorities had previously issued various official letters in which it is mentioned that the L/C activities, such as the issuance, the confirmation and the notification of L/C are VAT exempt, thus leading to inconsistent guidance.

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