On August 20th ,2020 Bac Ninh Tax Department issued Official Letter No. 2555/CT-TTHT and Official Letter No. 2574/CT-TTHT on the guidance of VAT rate when providing repair services for export processing enterprises as follows:
For repairing service of the electronic circuit board components of export processing enterprises (these are material for production); during the repairing process, the Service providers party also provides replacement materials for damaged parts. If the service implementation location is at the factory of the Service provider, then:
- In case that the electronic circuit board have sufficient customs dossiers to determine the sent and received back products of the export processing enterprises, the services (with or without the value of the replacement materials) shall be applied for VAT rate at 0% if it meets the conditions of applying 0% tax rate as stipulated in Point b Clause 2 Article 9 Circular No. 219/2013/TT-BTC dated December 31st ,2020 of the Ministry of Finance.
- In case that the Service providers party received the electronic circuit board from the export processing enterprises to the Company’s factory to carry out repairing services, without customs dossiers to determine the sent and received back products of the export processing enterprises, then the repairing services will be applied for VAT rate at 10%.
Car repair and maintenance services (passengers and products transportation) for the export processing enterprises which are not subjected to apply the tax rate of 0% (car are not one of the consumption cases in non-tariff zones)
