Value added tax of foreign language centers in Vietnam ?

If a foreign language center operates teaching activities according to the provisions of law and carries out procedures for issuance of establishment and operation licences according to the provisions of law, is it not subject to VAT?

DMS Law office in Danang, Vietnam advise about value added tax of foreign language centers ?

Objects not subject to tax:

Teaching and vocational training according to the provisions of law (Clause 13, Article 5 of the Law on Value Added No. 13/2008/QH12 dated June 3, 2008).

Objects not subject to VAT:

Teaching and vocational training according to the provisions of law, including teaching foreign languages and information technology; teaching dance, singing, painting, music, theater, circus, physical education and sports; raising-teaching children and teaching other occupations in order to train and foster to improve cultural qualifications and professional knowledge.

In cases where teaching establishments at all levels from preschool to high school collect charges for meals, transportation to pick up and drop off students and other revenues in the form of collection on behalf of students or payment on behalf of students, then such charges for meals and transportation,  collection on behalf of students and payment on behalf of students are also not subject to tax (Clause 13, Article 4, Circular 219/2013/TT-BTC dated December 31, 2013 guiding the value added tax law and decree 209/2013/ND-CP).

Therefore, if a foreign language center has teaching activities according to the provisions of law and carries out procedures for granting establishment and operation licences in accordance with the law, it is not subject to VAT./.

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Phone: 0989157682

Email: dmslawfirm@gmail.com

DMS LAW LLC

Director

(Signed)

Lawyer Do Minh Son