Nội dung toàn văn Official Dispatch No. 1818/TCT-CS, on value-added tax on the container handling
|
THE
GENERAL DEPARTMENT OF TAXATION |
SOCIALIST
REPUBLIC OF VIET NAM |
|
No. 1818/TCT-CS |
Hanoi, May 15, 2009 |
To: The Tax Department of Hai Phong city
The General Department of Taxation received Official Letter No. 1748/CT-KTr1 dated November 24, 2008, of the Tax Department of Hai Phong city requesting guidance on the application of value-added tax (VAT) rate to the service of loading and unloading containers from yards to ships and vice versa (terminal handling charges). Regarding this matter, the General Department of Taxation guides the application of legal documents as follows:
Point 1.23(d), Section II, Part A of Circular No. 32/2007/TT-BTC provides for objects not liable to VAT as follows: “Goods and services supplied directly for international transportation are those sold by Vietnam-based business establishments directly to owners of vehicles engaged in international transportation for use for international transportation activities or for those vehicles, including:
d.1. Goods and services supplied for use for international transportation activities, such as food rations, drinks; towels and paper tissues; vehicle cleaning services; lifebuoys and parachutes; towage of seagoing vessels; aircraft landing and take-off navigation, piers; mooring and unmooring of seagoing vessels; passenger loading bridges; and some other goods and services directly supplied for international transportation.
d.2. Goods and services provided for assuring the operation of vehicles engaged in international transportation, such as petrol and oil, repair, painting and maintenance of vehicles and some other goods and services supplied to ensure the operation of vehicles engaged in international transportation, excluding registry, insurance, repair, painting and maintenance services directly provided for vehicles owned by Vietnamese organizations and individuals or bare-boat chartered or time-chartered by Vietnamese organizations and individuals from foreign organizations and individuals, which are all subject to VAT as guided in Part B of this Circular.
Point 2.38, Section II, Part B of Circular No. 32/2007/TT-BTC provides for the application of the VAT rate of 5% to: “transportation, including cargo, luggage and passenger transportation, regardless of whether establishments directly perform or hire others to perform such jobs, except for brokerage and agency on commission; cargo and luggage loading and unloading.”
Pursuant to the above guidance, the General Department of Taxation has issued Official Letter No. 2177/TCT-CS of June 9, 2008, guiding the application of VAT rates to the container handling service. Accordingly, this service is subject to VAT at the rate of 5%. In cases in which this service has been treated to be unliable to VAT, the VAT rate of 5% must be applied.
The General Department of Taxation informs the Tax Department of Hai Phong city thereof for implementation.-
|
|
FOR
THE GENERAL DIRECTOR OF TAXATION |
