On September 18, 2019, Hanoi Tax Department issued Official Letter No. 72944/CT-TTHT. Whereby:
In case the Company signs a contract with an export processing enterprise to carry out a number of items (such as consultancy for fire prevention and fighting permits; applying for construction permits; design, executing and installing pre-engineered steel buildings; execution of piles), such goods and services provided to export processing enterprises are subject to the VAT rate of 0% if they meet the conditions specified in Clause 2, Article 9 of Circular No. 219/2013/TT- BTC.
In case the Company continues to sign contracts with subcontractors to carry out the aforementioned project, the subcontractors are responsible to make invoices, calculate, declare and pay VAT rate of 10% as prescribed. The company will be entitled to deduct input VAT if it meets the conditions specified in Article 15 of Circular No. 219/2013/TT-BTC and Clause 10, Article 1 of Circular No. 26/2015 / TT-BTC of the Ministry of Finance.
