ATM users face increased charges in VAT move on transactions
Automated teller machines are exempt from value-added tax, but tax agencies are taking steps to impose VAT and to fine banks for non-payment.
An official of a bank in HCM City said ATM operations provide payment services for clients, and funds on deposit have already been assessed for VAT. ATM machines do not provide credit services.
But tax agencies say ATM machines are being used to obtain credit, through the use of credit cards, which constitutes a loan from the bank and therefore attracts VAT.
Nguyen Tri Hieu, a banking and financial expert said, it would more rational for tax agencies to levy VAT only on credit card transactions, rather than all users of ATMs.
“Levying VAT on ATM operations will drive up service fees, which is somewhat in conflict with the government’s policy to encourage citizens to use non-cash transactions,” Hieu said.
