Nội dung toàn văn Official Dispatch No. 12987/BTC-TCT regarding value added tax on international
THE MINISTRY OF FINANCE
| THE SOCIALIST REPUBLIC OF VIETNAM |
No. 12987/BTC-TCT | Hanoi, October 14, 2005 |
OFFICIAL LETTER
REGARDING VALUE ADDED TAX ON INTERNATIONAL TRANSPORTATION SERVICES
To: - Provincial/municipal Tax Departments
The Ministry of Finance has recently received requests from several enterprises and local Taxation Departments for guidance on value added tax (VAT) on international transportation and international transportation services. Concerning this matter, the Finance Ministry provides the following guidance:
1. Regarding international transportation:
According to the provisions of Point 23, Section II, Part A of the Finance Ministry's Circular No. 120/2003/TT-BTC of December 12, 2003, "International cargo and passenger transportation shall not be subject to VAT. International transportation includes transportation by foreign countries or domestic transportation business establishments engaged in cargo and passenger transportation from Vietnam to foreign countries or vice versa, and cargo transportation between foreign ports. Where transportation service-providing establishments sign contracts for transportation of cargoes or passengers abroad, revenues from transportation services not subject to VAT shall be revenues actually collected from customers."
Hence, where enterprises carry out international transportation directly or through hiring others, revenues not subject to VAT shall be all international transportation freights collected from customers.
2. Regarding international transportation services:
According to the provisions of Point 1, Section I, Part A and Point 23, Section II, Part A of the Finance Ministry's Circular No. 120/2003/TT-BTC of December 12, 2003, international transportation services and other services provided and consumed outside Vietnam such as the service of preparing documents or papers on export goods in Vietnam, the service of preparing documents or papers on import goods in foreign countries, terminal handling (THC) services in Vietnam and THC services in foreign countries, and local transportation services in foreign countries, shall not be subject to VAT.
Where enterprises have declared and paid VAT on the above-said business activities, the VAT amounts already declared and remitted into the state budget shall not be adjusted.
Provincial/municipal Tax Departments are hereby requested to guide concerned enterprises in observing the above-said guidance.
| FOR THE MINISTER OF FINANCE |
