OFFICIAL LETTER 4317/TCT-KK DATED 19 SEP 2016 OF GDT GUIDING VAT FOR LAND USE RIGHT TRANSFER AND LAND RENTAL
According to official letter 4317/TCT-KK, the Government delivers land to the company to invest infrastructure, build houses for sale, land use right transfer, land rental to industrial parks, the delivered land use right belongs to the company. When the company transfers land use righto customers, tenants:
- Revenue from land use right is VAT non-liable revenue.
- Revenue from infrastructure sale, onsite assets (if any), land rental, asset leasing are imposed 10% VAT.
- VAT amounts served for production and business activities of the company are declared, deducted as follows:
+ Input VAT used for VAT-liable goods, services; for VAT non-declaration, non-computation, non-payment instructed in article 5 Circular 219/2013/TT-BTC are wholly deducted.
+ Input VAT used for non VAT-liable goods, services are not deducted.
+ Input VAT used for goods, services are not separately recognized will not be deducted for input VAT corresponding to revenue ratio of non-liable VAT goods, services sale to total revenue in the period.
