On October 31, 2019, General Department of Taxation issued Official Letter No. 4461/TCT-CS. Whereby:
In case a company leases land from the State and invests in infrastructure construction in industrial park in order to lease infrastructure attached to the land use right to other enterprises, the VAT policy shall comply with following principles:
₋ In case the customer is a domestic enterprise, the Company shall issue a VAT invoice to the customer at 10% VAT rate.
– In case the customer is an export processing enterprise, the Company shall issue a VAT invoice to the customer at 0% VAT rate if prescribed conditions are met, except for the case of leasing houses. halls, offices, hotels and warehouses which are not entitled to the VAT rate of 0% as prescribed.
The price to calculate VAT on the aforementioned sublease of land and infrastructure is the VAT-exclusive rent minus the deductible land price under the guidance at Point a.3, Clause 10, Article 7 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of Ministry of Finance.
