On August 27th, 2019, Hanoi Department of Tax issued the Official Letter No.67620/CT-TTHT. Whereby:
In case Company provides international transportation service from Vietnam to abroad or from abroad to Vietnam or both destinations in abroad including domestic transportation, then the International transportation which includes domestic routes shall be subject to the VAT rate by 0% if meeting the conditions specified in Item c, Clause 2, Article 9 of Circular No.219/2013/TT-BTC. In order to deduct the input VAT on export services, the Company must comply with the instructions in Article 16 of Circular No.219/2013/TT-BTC (amended and supplemented in Clause 7 Article 3 of Circular No.119/2014/TT-BTC and Clause 11, Article 1 of Circular No.26/2015/TT-BTC).
If other additional services related to consolidation and international transport activities do not meet the conditions to be determined as export services as regulated in Items b, Clause 1, and Item b, Clause 2, Article 9 of Circular No.219/2013/TT-BTC, they shall be subject to VAT rate by 10%. In case the Company does business in a variety of goods and services with different VAT rates, it must declare VAT according to each tax rate prescribed for each type of goods or service; If the Company does not clear each tax rate, it must calculate and pay tax at the highest tax rate of goods and services provided by the Company.
