Công văn 3450/TCT-CS

OFFICIAL LETTER

To: The Tax Department of Long An province

In reply to Official Letter No. 635/CT-THNVDT of February 24, 2009 and Point 4 of Official Letter No. 1730/CT-THNVDT of May 27, 2009, of the Tax Department of Long An province, on value-added tax on fees for taking examinations for the grant of certificates, the General Department of Taxation gives its opinion as follows:

Point 13, Section II, Part A of the Ministry of Finance’s Circular No. 129/2009/TT-BTC of December 26, 2008, guiding the implementation of a number of articles of the Law on Value-Added Tax and the Government’s Decree No. 123/2008/ND-CP of December 8, 2008, detailing and guiding the implementation of a number of articles of the Law on Value-Added Tax, stipulates non-taxable objects as follows:

“Teaching and vocational training stipulated by law, including also teaching of foreign languages, informatics, dancing, singing, painting, music, drama, circus, physical training, sports, baby nursing and other jobs, in order to raise educational levels and professional knowledge.

For educational establishments from pre-schools to upper secondary schools that collect charges for meals of their pupils, these charges are not liable to VAT.”

Point 3, Section II, Part B of Circular No. 129/2008/TT-BTC of December 26, 2008, also stipulates: “The tax rate of 10% applies to goods and services not stipulated in Section II, Part A and Points 1 and 2, Section II, Part B of this Circular.”

According to the above regulations, if training activities carried out by training establishments cover also the organization of examinations and grant of certificates to trainees, these activities are not liable to VAT. In case the organization of examinations and grant of certificates are not associated with training activities, these services are liable to VAT at the tax rate of 10%.

The General Department of Taxation notifies its opinion to the Tax Department of Long An province for compliance.