New VAT policy for Ahamove
New VAT policy for Ahamove
The HCM City Department of Taxation has approved a proposal from Ahamove regarding the way the on-demand delivery service company calculates value-added tax (VAT).
Accordingly, starting from 2019, Ahamove would have to pay VAT only on the share of revenue it received (excluding the revenue its partner drivers received). Previously, the VAT on the company was calculated on the total revenue earned from delivery services.
For the share of revenue Ahamove’s partner drivers received, the company would declare and pay VAT and personal income tax on behalf of its drivers following the established regulations.
CEO of Ahamove Nguyen Xuan Truong several months ago proposed new tax policies to be raised to promote the development of the sharing economy as well as new services like Grab and Ahamove.
Truong was quoted by ICTnews as saying that Ahamove became the first sharing-economy company to enjoy the new way of calculating VAT.
Ahamove provides on-demand delivery services with about 80,000 shippers operating in downtown areas of Ha Noi and HCM City. It handled 50,000-70,000 shipping orders in each city per day on average.
Ahamove took 20-25 per cent of the shipping fees as it revenue.
The current VAT rate is 10 per cent in Viet Nam.
