Official letter No. 3530/TCHQ-TXNK
dated July 13th, 2021 of the General Department of Vietnam Customs regarding value added tax (VAT) on, taxable value of, software
Posted: 15/7/2021 10:13:06 AM | Latest updated: 19/7/2021 3:56:36 PM (GMT+7)
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According to Clause 5 Article 1 of Circular No. 60/2019/TT-BTC, value of software controlling, operating imported machinery must be added to customs value.
However, according to Clause 5 Article 1 of Circular No. 60/2019/TT-BTC, the operating system imported for the purpose of upgrading or replacing operating system whose value was added to the value of imported machinery/equipment during the first importation shall not be added to customs value.
Accordingly, in case a company imports improved software to upgrade the default software previously installed in machinery, equipment, value of this upgrading software shall not be included in value for calculation of import duty.