Circular 83/2014/TT-BTC will be abolished from June 8

	The bad debt ratio has increased, putting pressure on banks
	Policies needed to encourage e-commerce to embrace circular economy

Illustrative photo. Internet.

Pursuant to the Law on VAT, on June 26, 2014, the Ministry of Finance issued Circular 83/2014/TT-BTC, which stipulates the List of VAT tariffs under Vietnam's Nomenclature of imports. The promulgation of Circular 83/2014/TT-BTC aims to detail the VAT rates prescribed in the law on VAT under HS codes so that Customs authorities and taxpayers have legal frawork to determine VAT rate.

However, after Circular 83/2014/TT-BTC was issued, the Law on VAT has been revised many time, so many provisions of Circular 83/2014/TT-BTC are no longer appropriate. During the implementation of Circular 83/2014/TT-BTC, many problems and obstacles have arisen, mainly due to the difference between the basis for determining VAT rates under the Law on VAT and the Circular 83/2014/TT-BTC.

The Ministry of Finance found that may provisions of Circular 83/2014/TT-BTC are replaced or specified in VAT documents after promulgating the Circular. In addition, some contents are no longer suitable for the current socio-economic development situation when the Party and State are promoting the simplification of administrative procedures, enhancing the application of information technology, overcoming overcome the overlap of the legal system.

Currently, the application of VAT rates to imports as well as the determination of goods not subject to VAT is stipulated in the Law on VAT and Government decrees and circulars of the Ministry of Finance.

Due to shortcomings in the process of implementing Circular 83/2014/TT-BTC, the Ministry of Finance said that it is unnecessary to regulate VAT rate for imports. The VAT rate for imports will be implemented in accordance with the current Law on VAT.

Accordingly, following the provisions of the Law on Promulgation of Legal Documents, the Ministry of Finance issued Circular 25/2024/TT-BTC abolishing Circular 83/2014/TT-BTC to reduce administrative procedures and create favorable conditions for Customs authorities and businesses during the implementation process.

The Ministry of Finance emphasized that the issuance of Circular 25/2024/TT-BTC aims to ensure consistency and unification in the application of the system of legal documents on VAT, avoid overlap of regulations in many different legal documents, facilitate Customs authorities and taxpayers in declaring, calculating and paying VAT on imports.

Accordingly, Circular 25/2024/TT-BTC abolishes Circular 83/2014/TT-BTC.

The General Department of Vietnam Customs requests local customs departments to disseminate and notify Circular 25/2024/TT-BTC to all customs officials and the business community.