Official Letter No. 416/TCT-CS 2025 regarding Value-Added Tax (VAT)

To: The Tax Department of Binh Duong Province.

The General Department of Taxation has received Official Letter No. 4131/CTBDU-HKDCN dated October 30, 2024, from the Tax Department of Binh Duong Province regarding Value-Added Tax (VAT). In response to this issue, the General Department of Taxation provides the following opinion:

Pursuant to Point h, Clause 1, Article 11 of the Real Estate Business Law No. 66/2014/QH13 dated November 25, 2014, which regulates the scope of real estate business for domestic organizations, individuals, Vietnamese citizens residing abroad, and foreign-invested enterprises;

Pursuant to Point d, Clause 3, Article 2 of Decree No. 209/2013/ND-CP dated December 18, 2013, of the Government, which regulates cases where VAT declaration and payment are not required;

Pursuant to Clause 4, Article 5, and Article 11 of Circular No. 219/2013/TT-BTC dated December 31, 2013, of the Ministry of Finance, which provides guidance on cases where VAT declaration and payment are not required, and the 10% VAT rate.

Based on the above regulations and guidance, in the case where the Vietnam-Singapore Industrial Park Joint Venture Co., Ltd. signs a contract to transfer part of the project in the Suoi Tre Residential Area to Viet Nhan Real Estate Joint Stock Company for continued investment in infrastructure construction and residential housing construction, this is considered real estate business, not an investment project transfer for production and business as per Clause 4, Article 5 of Circular No. 219/2013/TT-BTC dated December 31, 2013. Therefore, the enterprise is required to declare and pay VAT at the rate of 10% in accordance with the regulations.

The General Department of Taxation provides this opinion for the Tax Department of Binh Duong Province to be informed.

See details here.