Nội dung toàn văn Official Dispatch No. 1159/TCT-CS on value-added tax (VAT) rates for making inve
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THE FINANCE MINISTRY |
SOCIALIST REPUBLIC OF VIET NAM |
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No. 1159/TCT-CS |
Hanoi, March 20, 2008 |
OFFICIAL LETTER
ON VALUE-ADDED TAX (VAT) RATES FOR MAKING INVESTMENT REPORTS
To: Provincial/municipal Tax Departments
The General Department of Taxation has received official letters from some provincial/municipal Tax Departments and entities, inquiring about VAT rates for making investment reports, investment projects and econo-technical reports for construction and installation as well as for scientific research and technological development activities. Concerning this matter, the General Department of Taxation gives the following opinions:
Point 2.16, Section II, Part B of the Finance Ministry’s Circular No. 120/2003/TT-BTC of December 12, 2003, providing guidance on VAT (effective from January 1, 2004, to June 30, 2007) stipulates: “Scientific and technological services, including scientific and technical application and guidance activities, specifically as follows:
… - Making feasibility and pre-feasibility study reports and environmental impact assessment reports”, are subject to the VAT rate of 5%.
Point 2.16, Section II, Part B of the Finance Ministry’s Circular No. 32/2007/TT-BTC of April 9, 2007, providing guidance on VAT (effective from June 4, 2007) stipulates: “Scientific and technological services, including activities to serve scientific research and technological development such as data processing, calculation, …, making feasibility or pre-feasibility study reports, etc.,” are subject to the VAT rate of 5%.
Point 3.14, Section II, Part B of the Finance Ministry’s Circular No. 120/2003/TT-BTC of December 12, 2003, and Circular No. 32/2007/TT-BTC providing guidance on VAT specifies: “Construction and installation activities” are subject to the VAT rate of 10%.
Clause 1, Article 3 of the 2003 Construction Law stipulates: “Construction activities include formulation of construction plannings, formulation of investment projects on the construction of works, construction survey, work construction design, executing work construction, work construction supervision, management of investment projects on the construction of works, selection of construction contractors, and other activities related to work construction.”
Pursuant to the above provisions, the VAT rate of 10% is applicable to making investment reports, investment projects or econo-technical reports for construction and installation activities (former named feasibility or pre-feasibility study reports); the VAT rate of 5% is applicable to making feasibility or pre-feasibility study reports for scientific research and technological development activities.
The General Department of Taxation provides the above guidance to provincial/municipal Tax Departments for information and compliance.
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FOR THE GENERAL DIRECTOR OF
TAXATION |
