While there is no mandatory requirement to appoint a fiscal representative in Vietnam, foreign companies use such a service to ease their relationship with the authorities.
The tax agent is usually hired to handle the VAT registration procedure, however, in Vietnam, this service can be extended to other accounting-related procedures too. Find out from our lawyers in Vietnam when and how you can use such a solution.
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What does fiscal representation imply and how can it be used in Vietnam?
Fiscal representation implies complying with the administrative standards necessary for international trade, especially related to the payment of the value added tax. The VAT, in addition to special taxes on very specific products, is disclosed differently based on the country of import or export. Just like in many foreign countries, in Vietnam also, the VAT is applicable to a large number of commerce circumstances. Therefore, businesses must use fiscal representation services for this purpose.
A Vietnamese fiscal representative will act as a liaison officer for foreign natural or legal persons and the local tax authorities. Among his/her duties are:
- tax and VAT registration;
- verifying the accuracy of all declarations provided by international clients;
- handling administrative and tax-related requirements;
- drafting and filing various accounting declarations.
Feel free to address our accountant in Vietnam for such services.
Who can provide fiscal representation services in Vietnam?
The fiscal representative is usually an accountant or accounting firm accredited by the General Department of Taxation. In most cases, such an agent’s service is requested by foreign companies operating through branches or subsidiaries in Vietnam. However, local companies are also starting to use such solutions to ensure compliance with local legislation.
Sole traders, including foreign citizens holding Vietnamese residency and doing business here, can also use such a service, despite having small operations.
You can rely on our law firm in Vietnam if you want to set up a business here, and on our accountant for fiscal representation.
Our fiscal representative services in Vietnam
If you are interested in appointing a fiscal representative, here is how we can help you:
- create an account and register with the local tax office;
- verify that your business complies with all applicable national VAT laws;
- manage your company’s compliance with national VAT filing requirements and tax audits;
- handle your VAT returns and refund claims;
- assist in making sure your VAT payments are made on time;
- manage all of your VAT inquiries and correspondence with the tax authorities on your behalf.
In addition, we can also handle more specific accounting regulations, such as the special consumption tax and the environmental protection taxes. We can also advise on how to apply for tax incentives, reductions, and exemptions. However, we remind you that the main services covered by a fiscal representative in Vietnam are related to the VAT.
VAT-related requirements in Vietnam
The value added tax is one of the most important levies in the world, as it applies in most countries on the globe. Vietnam is similar to many states from several points of view, including e-invoicing and filing returns for this tax.
Here are the most important highlights of the VAT in Vietnam:
- The standard rate is 8% applied until June 30, 2024 (the normal rate was 10%);
- This temporary VAT reduction is applicable to the supply of goods and services, excluding telecommunications, information technology, and financial activities.;
- Companies must file monthly VAT reports by the 20th of the current month for the previous one.
Our lawyers can also offer support in matters related to immigration to Vietnam to foreign investors.
If you need fiscal representation services in Vietnam, please contact us.