Circular No. 12987/BTC-TCT regarding Value-Added Tax (VAT) on international transportation services and related services

Circular No. 12987/BTC-TCT of the Ministry of Finance in 2005 stipulates VAT for international transportation services and related services. This document provides specific guidance on exempting VAT for international cargo and passenger transport, as well as certain services supporting international transportation.

Số hiệu12987/BTC-TCT
Loại văn bảnOfficial Dispatch
Cơ quan ban hànhMinistry of Finance
Người kýTrương Chí Trung
Cập nhật17/06/2026
NgànhLabour, War Invalids and Social Affairs
Lĩnh vựcUncategorized
Ngày ban hành14/10/2005
Ngày áp dụng
Ngày hết hiệu lực
Tình trạngIn effect
✦ Tóm lược thông minh

Circular No. 12987/BTC-TCT of the Ministry of Finance in 2005 stipulates VAT for international transportation services and related services. This document provides specific guidance on exempting VAT for international cargo and passenger transport, as well as certain services supporting international transportation.

Đối tượng áp dụng

Provincial Tax Departments; enterprises engaged in international transportation

Các điểm cốt lõi

  • Enterprises engaged in international cargo and passenger transportation are not subject to Value-Added Tax (VAT) (Point 23, Section II, Part A, Circular No. 120/2003/TT-BTC)
  • Services for preparing documents and papers related to import and export goods; services at terminals in Vietnam and abroad; domestic transportation transfer services outside the country are not subject to VAT (Point 1, Section I, Part A and Point 23, Section II, Part A, Circular No. 120/2003/TT-BTC)
  • Revenue exempt from VAT is the entire freight charges for international transportation received from customers (Point 23, Section II, Part A, Circular No. 120/2003/TT-BTC)
  • If enterprises have declared and paid VAT on the aforementioned services, they shall not adjust the amount of tax already paid (Point 23, Section II, Part A, Circular No. 120/2003/TT-BTC)
  • The Tax Department instructs enterprises to comply with this provision

🌐 Tác động xã hội từ văn bản này

  • Reducing the tax burden for international transportation enterprises
  • Facilitating import and export of goods and passengers across borders
  • Tax authorities need to provide specific guidance to ensure compliance with regulations

❓ Câu hỏi thường gặp

Are enterprises engaged in international transportation subject to VAT?

No, according to Circular No. 12987/BTC-TCT of the Ministry of Finance in 2005.

Which related services are exempt from VAT for international transportation?

Services for preparing documents and papers related to import and export goods; terminal services at Vietnam and abroad; domestic transportation transfer services outside the country.

If enterprises have paid VAT on these services, can they be refunded?

No, according to Circular No. 12987/BTC-TCT of the Ministry of Finance in 2005, the tax already paid will not be adjusted.

How is revenue from international transportation calculated for enterprises?

The entire freight charges for international transportation received from customers constitute exempt VAT revenue.

Toàn văn

MINISTRY OF FINANCE

No.: 12987/BTC-TCT
Regarding: VAT for international transportation services

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness

Hanoi, October 14, 2005

To: Provincial and Central City Tax Departments

Recently, the Ministry of Finance received recommendations from some enterprises and local tax authorities requesting guidance on value-added tax (VAT) for international transportation and international transportation services. Regarding this issue, the Ministry of Finance provides the following guidelines:

1. On International Transportation:

According to Article 23, Section II, Part A, Circular No. 120/2003/TT-BTC dated December 12, 2003 of the Ministry of Finance, "International transportation of goods and passengers does not fall within the scope of VAT liability. International transportation includes transportation by foreign entities or domestic transport businesses participating in transporting goods and passengers from Vietnam to another country or vice versa, as well as transportation between ports abroad. In cases where a transport service provider enters into an international transportation contract with customers, the revenue from such services that is exempt from VAT is the actual income received from customers."

Therefore, for enterprises engaged in international transportation, whether directly or through subcontracting, the revenue not subject to VAT is the entire amount of international transportation fees collected from customers.

2. On Services within International Transportation:

Based on Article 1, Section I, Part A and Article 23, Section II, Part A, Circular No. 120/2003/TT-BTC dated December 12, 2003 of the Ministry of Finance, services supporting international transportation and those performed or consumed outside Vietnam such as preparing export documentation for goods in Vietnam, preparing import documentation for goods abroad, terminal handling charges (THC) in Vietnam, terminal handling charges abroad, and domestic transportation services in another country do not fall within the scope of VAT liability.

In cases where enterprises have declared and paid VAT on these business activities, there is no need to adjust the previously declared and paid VAT amounts.

Please instruct enterprises to follow the above guidelines.

DEPUTY MINISTER
VICE MINISTER

Mr. Chi Trungg

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