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Ho Chi Minh City café under scrutiny for mistaken 100% VAT charge

Ho Chi Minh City café under scrutiny for mistaken 100% VAT charge

Tuesday, February 08, 2022, 14:21 GMT+7
Ho Chi Minh City café under scrutiny for mistaken 100% VAT charge
This photo shows a bill in the new format issued on February 7, 2022 with no VAT charges at Go Coffee in Go Vap District, Ho Chi Minh City. Photo: Tu Trung / Tuoi Tre

Tax authorities in Ho Chi Minh City have finished inspecting a coffee shop in Go Vap District for charging a customer a 100-percent value-added tax (VAT) by mistake during the recent Lunar New Year holiday.

The scrutiny came after the customer had taken to social media to complain about paying VND334,000 (US$14.7) for five beverages, including VND167,000 ($7.35) for the net price of the drinks and another VND167,000 for VAT, at Go Coffee on Phan Van Tri Street in Go Vap District on February 1.

The complaint came with a photo of the drink bill, which clearly outlined the 100-percent VAT charge.

February 1 was the effective date of a new government decree, whereby the VAT rate has been reduced from ten percent to eight percent in order to stimulate consumption demand and promote socio-economic recovery and development while living together with COVID-19.

Therefore, it is illegal to collect a VAT of up to 100 percent.

In the case of a surcharge on Lunar New Year holiday, collectors must clearly state it as a surcharge, not as VAT.

This photo uploaded on social media shows a bill issued on February 1, 2022 with a 100-percent VAT charge at Go Coffee in Go Vap District, Ho Chi Minh City.

This photo uploaded on social media shows a bill issued on February 1, 2022 with a 100-percent VAT charge at Go Coffee in Go Vap District, Ho Chi Minh City.

In light of the inspection, a manager of Go Coffee explained to reporters that his café surcharged customers 100 percent of its products and services on February 1, or the first day of the 2022 Lunar New Year, when payments for employees were higher than usual, and 25 percent on February 2 and 3.

However, he “clicked the wrong button” when producing the bill, making the surcharge to be specified as a 100-percent VAT rate as shown on the photographed bill.

The tax division of Go Vap District concluded the inspection on Monday afternoon and is reporting the details of the case to the Ho Chi Minh City Tax Department and the General Department of Taxation, according to an official of the unit.

Meanwhile, bills issued by Go Coffee no longer contained a VAT line as of the same afternoon, as observed by a Tuoi Tre (Youth) newspaper reporter.

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Tax authorities in Ho Chi Minh City have finished inspecting a coffee shop in Go Vap District for charging a customer a 100-percent value-added tax (VAT) by mistake during the recent Lunar New Year holiday.

The scrutiny came after the customer had taken to social media to complain about paying VND334,000 (US$14.7) for five beverages, including VND167,000 ($7.35) for the net price of the drinks and another VND167,000 for VAT, at Go Coffee on Phan Van Tri Street in Go Vap District on February 1.

The complaint came with a photo of the drink bill, which clearly outlined the 100-percent VAT charge.

February 1 was the effective date of a new government decree, whereby the VAT rate has been reduced from ten percent to eight percent in order to stimulate consumption demand and promote socio-economic recovery and development while living together with COVID-19.

Therefore, it is illegal to collect a VAT of up to 100 percent.

In the case of a surcharge on Lunar New Year holiday, collectors must clearly state it as a surcharge, not as VAT.

This photo uploaded on social media shows a bill issued on February 1, 2022 with a 100-percent VAT charge at Go Coffee in Go Vap District, Ho Chi Minh City.

This photo uploaded on social media shows a bill issued on February 1, 2022 with a 100-percent VAT charge at Go Coffee in Go Vap District, Ho Chi Minh City.

In light of the inspection, a manager of Go Coffee explained to reporters that his café surcharged customers 100 percent of its products and services on February 1, or the first day of the 2022 Lunar New Year, when payments for employees were higher than usual, and 25 percent on February 2 and 3.

However, he “clicked the wrong button” when producing the bill, making the surcharge to be specified as a 100-percent VAT rate as shown on the photographed bill.

The tax division of Go Vap District concluded the inspection on Monday afternoon and is reporting the details of the case to the Ho Chi Minh City Tax Department and the General Department of Taxation, according to an official of the unit.

Meanwhile, bills issued by Go Coffee no longer contained a VAT line as of the same afternoon, as observed by a Tuoi Tre (Youth) newspaper reporter.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!

Bao Anh - A. Hong / Tuoi Tre News

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