On October 2, 2019, Hanoi Tax Department issued Official Letter No. 75999/CT-TTHT. Whereby:
In case the Company has insurance applications for exported goods going from a warehouse in Vietnam to a warehouse in another country and insurance applications of which the insured person is a foreign individual or a foreign organization:
VAT rate of 0% shall be applied to the value of insurance services provided outside of Vietnam’s territory according to Article 9 of Circular No. 219/2013/TT-BTC; VAT rate of 10% shall be applied to the value of insurance services provided in Vietnam, according to Article 11 of Circular No. 219/2013/TT-BTC; If the contract does not specify value of the service part implemented in Vietnam, the taxable price shall be determined by the ratio (%) of expenses incurred in Vietnam to the total cost.
