Vietnam – VAT, The Taxable Value For Software.

12 October, 2021

 

The General Department of Customs has issued Official Letter No. 3530/TCHQ-TXNK dated 13 July 2021 on VAT and taxable value for software with the following contents:

 

• In case the imported goods are machines/equipment imported together with the operating system, the customs value is the transaction value of such machines/equipment and operating system.

 

• An operating system is a set of data, programs, or guidelines presented in form of commands, codes, coding schemes, or any other forms that act as an interpreter for the user and a machine/a piece of equipment and provides an environment for the user to operate and control the functions of the machine/equipment when it is integrated into such machine/equipment.

 

• The operating system is imported for the purpose of upgrading or replacing an operating system whose value was aggregated with the value of imported machines/equipment during the first importation, the value of the operating system is not aggregated with the customs value of the machines/equipment.

 

• In case the company imports advanced software that is installed on the computer to further upgrade the system management and control features at the request of the user, the value of the imported operating and control software shall not be aggregated with the customs value of machinery and equipment.

 

• Computer software, including software products and software services, are not subject to VAT.

 

 

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