Official Dispatch No. 23838/CTBRV-TTHT on Value Added Tax Policy

Official Dispatch No. 23838/CTBRV-TTHT on Value Added Tax Policy

Legislation

Official Dispatch No. 23838/CTBRV-TTHT on Value Added Tax Policy

GENERAL DEPARTMENT OF TAXATION

TAX DEPARTMENT OF BÀ RỊA - VŨNG TÀU PROVINCE

No: 23838/CTBRV-TTHT

Re: Value Added Tax (VAT) Policy

SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

Bà Rịa - Vũng Tàu, December 12, 2024

 

To:

Tân Cảng - Cái Mép International Terminal Co., Ltd. (TCIT)

Address: 7th Floor, Saigon Newport Building, Tan Phuoc Ward, Phu My Town, Bà Rịa - Vũng Tàu Province

Tax Code: 3501473524

In response to Official Letter No. 07/2024/TCIT-FA dated December 6, 2024, from Tân Cảng - Cái Mép International Terminal Co., Ltd. (TCIT) regarding VAT policy, the Tax Department of Bà Rịa - Vũng Tàu Province provides the following guidance:

Pursuant to Circular No. 219/2013/TT-BTC dated December 31, 2013, issued by the Minister of Finance, providing guidelines on VAT;

“Article 9. 0% VAT rate

1. The 0% VAT rate applies to exported goods and services; construction and installation activities performed abroad and in non-tariff zones; international transportation; goods and services not subject to VAT when exported, except for cases specified in Clause 3 of this Article where the 0% VAT rate is not applicable.

Exported goods and services are defined as goods and services sold or supplied to organizations and individuals overseas and consumed outside Vietnam; sold or supplied to organizations and individuals in non-tariff zones; and goods and services provided to foreign customers as prescribed by law.

d) Maritime and aviation services provided directly to foreign organizations or through agents, including:

Maritime services subject to the 0% VAT rate: tugboat services; maritime pilotage; maritime rescue; port and buoy services; cargo handling; mooring and unmooring; hatch cover opening and closing; ship hold cleaning; tallying and cargo delivery; and vessel inspection.

2. Conditions for applying the 0% VAT rate:

…

d) For maritime and aviation services:

…

d.2) Maritime services subject to the 0% VAT rate must be performed within port areas and meet the following conditions:

- A service contract must be signed with a foreign organization, a shipping agent, or a service request from a foreign organization or a shipping agent;

- Payment for the services must be made via bank transfer by the foreign organization or the shipping agent, or through other payment methods recognized as bank transactions.

…”

Article 11. 10% VAT rate

The 10% VAT rate applies to goods and services not specified in Articles 4, 9, and 10 of this Circular.

…”

Based on the above provisions, the application of the 0% VAT rate for maritime services shall be implemented in accordance with Article 9 of Circular No. 219/2013/TT-BTC dated December 31, 2013, issued by the Minister of Finance. For goods and services not covered under Articles 4, 9, and 10 of Circular No. 219/2013/TT-BTC, the 10% VAT rate shall be applied in accordance with Article 11 of the same Circular.

The Tax Department of Bà Rịa - Vũng Tàu Province notifies Tân Cảng - Cái Mép International Terminal Co., Ltd. (TCIT) for acknowledgment and compliance with legal regulations.

Recipients

- As above;

- TTK.T1 Department;

- NVDTPC Department;

- Tax Department Website;

- Archives: VT, TTHT (LẦM-5b);

- Archives: VT, TTTB.

KT. CỤC TRƯỞNG

PHÓ CỤC TRƯỞNG

 

 

 

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