Official letter 1153/CTHNA-TTHT about VAT rate
Based on the above regulations and according to the records and documents provided by the Company, in case the Company is an export processing enterprise that rents factories and offices to Wistron Technology (Vietnam) Co., Ltd., also an export processing enterprise, warehouse (unused surplus) but these rental assets are located entirely on the usable ground area recorded in the investment registration certificate issued to Wistron Technology (Vietnam) Co., Ltd., then :
- Regarding VAT rates for factory, office and warehouse rental services:
In case Wistron Technology (Vietnam) Co., Ltd. uses the entire area of the factory, office, and warehouse mentioned above to serve export processing activities, the factory, office, and warehouse rental service is not included. subject to VAT.
In case Wistron Technology (Vietnam) Co., Ltd. uses the above rented area to serve other business activities other than export processing activities, the factory, office, and warehouse rental services are subject to subject to VAT at the VAT rate of 10%.
Regarding input VAT and output of other accompanying services (electricity, water, waste treatment):
In case the Company is not a unit licensed to provide electricity, water, and waste treatment services, the above services are provided directly by service providers to Wistron Technology (Vietnam) Co., Ltd. To serve export processing activities, the Company is only an intermediary unit that collects on behalf of customers, only on households:
+ If the invoice of the electricity, water, and waste treatment service providers lists the customer's name as Wistron Technology (Vietnam) Co., Ltd., the above services are subject to a VAT rate of 0%, the Company does not Must declare and pay taxes on income and expenses, but only prepare receipts and expenditures according to regulations.
+ If the invoice of the electricity, water, and waste treatment service providers lists the customer's name as the Company (the paying company), then the above services are subject to a VAT rate of 0%. When collecting the payment amount, the Company issues an output invoice with the corresponding tax rate of 0%.
In case the above mentioned accompanying services do not serve export processing activities, they are subject to VAT, with output and input tax rates of 10% according to regulations.
