Uni 22-03-2012 - Answering VAT policy on performing art activities in foreign countries

Pursuant to Article 3 of the Law on VAT and in a, Clause 1, Article 12 of the VAT Law, the Ministry of Finance guide to answer official letter as follows:

If the Company signs the contract with People Government Commission (not VAT payers) to implement exchange programs, performing arts and culture of ethnic Vietnamese - Laos in Vientiane, Laos, company must not declare and pay VAT for this activity. Amount of input VAT arised in Vietnam for performing arts activities in the Lao People's Democratic Republic and the amount of VAT arised in Laos are not allowed to declare and deduct, however are included in the deductible expenditure when determining income subject to CIT..