To: Provincial-level Tax Departments

The Ministry of Finance has received enterprises’ official letters requesting the guidance on the application of value-added tax (VAT) for international transportation freight purchase and sale. Regarding this matter, the Ministry of Finance gives the following opinions:

According to the guidance of Point 1.1, Section II, Part B and Point 3, Section II, Part B of the Finance Ministry’s Circular No. 129/2008/TT-BTC of December 26, 2008, on VAT, in case a business establishment not directly engaged in international transportation hires another enterprise to provide international transportation services for customers, upon collection of freight charges from customers: The international freight hired by the establishment which satisfies the conditions specified in Article 2 of the Finance Ministry’s Circular No. 112/2009/TT-BTC of June 2, 2009, will be eligible for the VAT rate of 0%; the difference between the selling and purchasing prices of international transportation freight is subject to the VAT rate of 10%.

Above is the Ministry of Finance’s guidance for Tax Departments; any problems arising in the course of the implementation should be promptly reported to the Ministry of Finance for guidance.-

FOR THE MINISTER OF FINANCE
DEPUTY MINISTER




Do Hoang Anh Tuan