Nội dung toàn văn Official Dispatch No. 2761 TCT/DNNN of August 30, 2004, on value added tax (VAT) rates applicable to construction and installation activities
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MINISTRY
OF FINANCE |
SOCIALIST
REPUBLIC OF VIET NAM |
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No. 2761 TCT/DNNN |
Hanoi, August 30, 2004 |
OFFICIAL LETTER
ON VALUE ADDED TAX (VAT) RATES APPLICABLE TO CONSTRUCTION AND INSTALLATION ACTIVITIES
To: Provincial/municipal Tax Departments
The General Department of Taxation has recently received official letters from some localities and enterprises, inquiring about the VAT rate applicable to construction works under contracts signed prior to and after January 1, 2004. The General Department of Taxation hereby gives the following opinions:
According to the provisions of Section II, Part H of the Finance Ministry’s Circular No. 120/2003/TT-BTC of December 12, 2003, guiding the implementation of the Government’s Decree No. 158/2003/ND-CP of December 10, 2003, detailing the implementation of the VAT Law and the Law Amending and Supplementing a Number of Articles of the VAT Law:
- For construction or installation works under contracts signed prior to January 1, 2004, and subject to the VAT rate of 5%, by December 31, 2003, if such construction or installation works had been not yet finished, the tax rate of 5% shall still apply to their construction volumes in progress.
- Where construction or installation contracts were signed prior to January 1, 2004, with the VAT rate of 5%, but no construction or installation work had been done in 2003, the VAT rate of 10% shall apply. Construction or installation contractors and investors shall adjust the signed contracts based on the prescribed tax rate of 10%.
The General Department of Taxation hereby notifies provincial/municipal Tax Departments thereof for guiding units in the implementation.
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FOR
THE GENERAL DIRECTOR OF TAXATION |
