Vietnam Clarifies VAT Rules on Labor Export Activities

The Vietnamese Government Aug. 8 clarified VAT rules on labor export activities. The clarification includes: 1) the exclusion from VAT of teaching and vocational training activities, including in cases where teaching and vocational training establishments collect and pay on behalf of others; 2) that goods and services provided by organizations and individuals to teaching and vocational training establishments are subject to VAT; 3) that export services include services provided directly to organizations and individuals abroad and consumed outside Vietnam, with overseas individuals being required to be outside Vietnam when such services are provided; 4) conditions for applying the zero percent ...