Official letter No. 15743/CTHN-TTHT dated March 30th, 2023 of the Department of Taxation of Ha Noi city regarding guidelines on value added tax (VAT) rate

In case a company conducts the construction of factory in a non-tariff zone, if the conditions regulated at clause 2 Article 9 of Circular No. 219/2013/TT-BTC are met, the service is considered to be exported service and is entitled to apply 0% VAT.

However, if the construction of factory is conducted outside a non-tariff zone, it has to apply 10%VAT according to Article 11 of Circular No. 219/2013/TT-BTC .

Non-tariff zones include: processing and exporting zones, processing and exporting enterprises, bonded zones, bonded warehouses, special commercial and economic zones, commercial-industrial zones and other economic zones established and enjoying preferential taxes similarly to non-tariff zones under the Prime Minister's Decisions (clause 20 Article 4 of Circular No. 219/2013/TT-BTC ) .

Regarding conditions for VAT refund with regard to exported services, it is required to carry out according to Article 2 of Circular No. 25/2018/TT-BTC and Article 16 of Circular No. 219/2013/TT-BTC .