OFFICIAL LETTER

ON VALUE ADDED-TAX (VAT) RATES OF SHOE LASTS

To: Provincial/municipal Tax Departments

The General Department of Taxation has received Official Letters of several enterprises and Tax Departments, requesting guidance on setting problems related to value-added tax rates of shoe lasts. Concerning this matter, the General Department of Taxation gives the following opinions:

Pursuant to Point 2.22, Section II, Part B of the Finance Ministry’s Circular No. 120/2003/TT-BTC of December 12, 2003, guiding value-added tax.

Point 2.22, Section II, Part B of the Finance Ministry’s Circular No. 32/2007/TT-BTC of April 9, 2007, guiding the implementation of the Government’s Decree No. 158/2003/ND-CP of December 10, 2003, and Decree No. 148/2004/ND-CP of July 23, 2004, detailing the implementation of the Value-Added Tax Law and the Law Amending and Supplementing a number of Articles of the Value-Added Tax Law stipulates: “Molds of all kinds, including those used as tools for production of commodity products shaped by molds, such as molds of machine parts, molds for production of assorted tubes” shall be subject to the VAT rate of 5%.

According to the above guidance, lasts (molds for shaping shoes), regardless of their materials, shall be subject to the VAT rate of 5%.

The General Department of Taxation would like to notify such to provincial/municipal Tax Departments for compliance and provision of guidance on implementation to business establishments.

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FOR THE GENERAL DIRECTOR OF TAXATION
DEPUTY GENERAL DIRECTOR




Pham Duy Khuong