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MINISTRY OF FINANCE
GENERAL DEPARTMENT OF TAXATION
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No: 148/TCT-CS
Re: VAT policy
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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Hanoi, January 10, 2025
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To:
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Bac Ninh Tax Department;
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Air Liquide Vietnam Co., Ltd. (Address: Que Vo Industrial Zone, Van Duong Ward, Bac Ninh City, Bac Ninh Province)
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The General Department of Taxation has received Official Letter ALV FA2 281124 dated November 28, 2024, from Air Liquide Vietnam Co., Ltd. and Official Letter 4133/CTBNI-TTKT2 dated September 18, 2023, from Bac Ninh Tax Department regarding value-added tax (VAT). In this regard, the General Department of Taxation provides the following comments:
Pursuant to the provisions of Clause 8, Clause 9, Article 3 of the Commercial Law No. 36/2005/QH11 on the interpretation of terms.
Pursuant to Article 76 of the Tax Administration Law No. 38/2019/QH14 on the authority to decide tax refund.
Pursuant to Article 112 of the Tax Administration Law No. 38/2019/QH14 on the responsibilities and powers of the head of the tax administration agency to make tax inspection decisions and the role of tax officials in tax inspections.
Pursuant to Clause 1, Article 8 of the VAT Law (as amended by Clause 3, Article 1 of Law No. 31/2013/QH13) on the 0% VAT rate.
Pursuant to the guidance in Clause 1, Clause 2, Article 9 of Circular No. 219/2013/TT-BTC dated December 31, 2013, of the Ministry of Finance on the 0% VAT rate.
Regarding the issue raised by Bac Ninh Tax Department, the General Department of Taxation had previously sent Official Letters No. 28/TCT-CS on January 3, 2024, and No. 2161/TCT-CS on May 22, 2024, seeking feedback from the Ministry of Industry and Trade, but has not received a response from the Ministry of Industry and Trade. On January 8, 2025, the General Department of Taxation sent another official letter (No. 117/TCT-CS) to follow up with the Ministry of Industry and Trade.
On May 15, 2024, the General Department of Customs issued Official Letter No. 2109/TCHQ-GSQL to the General Department of Taxation, which stated that based on the business’s explanation regarding the fixed monthly fee (MFC0) as a service fee for supplying goods (not as revenue from selling goods), and based on the principles for determining the customs value of exported and imported goods in Article 86 of the Customs Law, the MFC0 fee is not subject to consideration when determining the customs value. Therefore, when this fee arises, businesses are not required to adjust the customs value of goods or amend the customs declaration.
Based on the above provisions and guidance, goods and services exported are those consumed outside of Vietnam, in bonded zones, or provided to foreign customers. We request that Bac Ninh Tax Department refer to the above regulations, the specific documents, and the General Department of Customs' opinions in Official Letter No. 2109/TCHQ-GSQL, and cooperate with local customs authorities to apply VAT and customs declarations consistently for the fixed monthly fee collected by Air Liquide Vietnam Co., Ltd. from its customers.
The General Department of Taxation provides this feedback for the Bac Ninh Tax Department and Air Liquide Vietnam Co., Ltd. to be informed and follow the relevant regulations.
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Recipients:
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As above;
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Deputy General Director Dang Ngoc Minh (for report);
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General Department of Customs, Department of Customs Supervision and Administration, CST, Ministry of Finance;
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Department of Import-Export Management, TCT;
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TCT Website;
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Archives: VT, CS (3).
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On behalf of the GENERAL DIRECTOR
For the Director of the Policy Department
DEPUTY DIRECTOR
Pham Thi Minh Hien
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See details here.