VAT rate for factory leasing activity

12/31/2022
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On December 16, 2022, the Tax Department of Bac Ninh province issued Official Letter No.4127/CTBNI-TTHT on the value-added tax (“VAT”) rate with the operation of leasing factories to Enterprise Processing Export (“EPE”). As follows:

In case the Company signs a factory leasing agreement with an EPE, the Company shall issue a VAT invoice at the rate of 0% if this land lot’s location is identified in the "Project implementation location" section of the Investment Registration Certificate granted by a competent state agency to EPE in accordance with the provisions of law, and at the same time must satisfy the conditions specified in Clause 2, Article 9 of Circular No. 219/2013/ TT-BTC dated December 31, 2013 of the Ministry of Finance.

In case the Company leases houses, halls, offices, hotels, warehouses to EPE, the VAT rate of 0% is not applicable.