Công văn 3686/TCT-CS

OFFICIAL LETTER

ON VALUE-ADDED TAX ON SERVICES PROVIDED TO EXPORT-PROCESSING ENTERPRISES

To: Provincial-level Tax Departments

The General Department of Taxation has recently received inquiries from several provincial-level Tax Departments on value-added tax (VAT) concerning the provision of services to export-processing enterprises for use outside these enterprises guided in the General Department of Taxation’s Official Letter No. 1276/TCT-CS of April 8, 2009.

In order to implement these regulations consistently, the General Department of Taxation further guides the application of VAT on services provided to export-processing enterprises but used outside these enterprises as follows:

The General Department of Taxation’s Official Letter No. 1276/TCT-CS of guides:

“Services provided to export-processing enterprises but used outside these enterprises are not entitled to the tax rate of 0%. Therefore, services provided by domestic business establishments to export-processing enterprises but used outside these enterprises, including such services as lease of land, houses, meeting halls, offices, hotels, warehouses and storing yards, construction of houses for laborers and laborer transportation, are ineligible for the tax rate of 0%.”

Under the above guidance, services provided by domestic business establishments to export-processing enterprises and performed outside these enterprises which are ineligible for the tax rate of 0% include only the services of leasing houses, land, meeting halls, offices, hotels, warehouses and storing yards, building houses for laborers and laborer transportation. Other services provided to export-processing enterprises comply with the Ministry of Finance’s Circular No. 32/2007/TT-BTC of April 9, 2007, and Circular No. 30/2008/TT-BTC of April 16, 2008.

The General Department of Taxation notifies the above guidance to provincial-level Tax Departments for compliance and provision of guidance to concerned units.