[Vnbiz] VAT treatment Vietnamese overseas branch

[Dieu Linh]

Dear anh Hoanh, Craig Stevenson and all

Thank you very much for your kind advice.

I cannot agree with anh Hoanh more about your approach
when thinking of opening an overseas branch. Thank you
so much for your thought and explanation!!! It is not
only for me in this case but for the business sense in
general.

I hope that VAT issue is one among their list of
concern (SWOT, 5 forces, 9Ms...). Maybe I am in UK, so
they put that question to me?

Have a good Sunday

Dieu Linh

--- Tran Dinh Hoanh <tdhoanh at gmail.com> wrote:

> 
> [Vietnam Business Forum]
> 
> 
> 
> Dear Dieu Linh,
> 
> Something in your question keeps me thinking, and
> now I re-read the
> question and realize what that is.  It is peculiar
> that a company in
> Vietnam that is thinking about branching out
> overseas  would want to
> ask for information about invoicing and VAT.  Those
> things are the
> least concern in the entire strategy.
> 
> When a company wants to expand, they would want to
> think about other
> major costs and issues:  rent, utilities, employee
> wages, wage taxes,
> product cost, transportation cost, import duties and
> other imports
> limitations, immigration issues, management
> structure, coordination
> and communication (between head office and the
> branch) etc...
> 
> What I am sensing is that maybe the company
> leadership is not focusing
> their thinking on the right place.  We can't do a
> major strategic move
> successfully without having the right strategic
> thinking.
> 
> If my client asks me a question like that (VAT and
> invoice), I would
> answer like this:   "There is no VAT in the US. 
> Sales tax is a little
> bit of something equivalent.  But before going into
> the details, let
> me ask you a question. Why would you be concerned
> about VAT or sales
> tax?  Is there any specific reason that you are so
> concerned about
> it?"
> 
> As counsel, I would need to know the way my client
> is thinking, and if
> I feel that they are not thinking in the right
> direction, I have to
> steer them back to the right course.
> 
> VAT or sales tax should be at the bottom of the list
> of concerns.  You
> think about them when you already have the answers
> for the major
> issues.  But if a client doesn't know that the US
> has no VAT, it means
> the client has not resolved the major issues
> (because if had resolved
> the major issues, it would have known about such
> common knowledge on
> VAT).  And if you have not resolved the major issues
> but you are
> concerned about VAT, you are not thinking straight. 
> Your mind is not
> on the right place.  You need to change the focus of
> your thinking, to
> do better planning, before you can hope of a
> successful move.
> 
> Most of the time, the job of counsel (advisor,
> consultant, etc.) is
> not just to give a mechanical answer to a question,
> but to see the way
> the client is thinking through his question.  That
> way, counsel can
> advise the client much more comprehensively and
> effectively.
> 
> (Think about a client who asks his psychologist: 
> "Where could I buy a
> gun?"  The psychologist may not want to give a
> mechanical answer like:
> "Go to this gun shop at this address..."  But his
> job is to find out
> why the client asks such a question, and, if he
> finds out that his
> client is thinking dangerously, how to help the
> client think
> straight).
> 
> Have a great day!
> 
> Hoanh
> ________
> 
> On 10/27/06, Dieu Linh <caodieulinh23 at yahoo.com>
> wrote:
> >
> > [Vietnam Business Forum]
> >
> >
> >
> > Hi all
> >
> > My friend's Vietnamese Company plans to establish
> its
> > branch in UK and US. She is looking for
> information on
> > invoice and VAT treatment for this branch in UK
> and
> > US.
> >
> > I am not UK and US tax expert and not confident
> > evaluating information from Google. It would be
> great
> > if I got some clues from CACC.
> >
> > Appreciate any help from you!!!
> >
> > Have a good weekend
> >
> > Linh
> >
> >
> > __________________________________________________
> >
> 
> -- 
> Tran Dinh Hoanh, LLB, JD
> Attorney of Law
> Washington DC
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