Circular No. 7703/TC/TCT stipulates the value-added tax (VAT) rate applicable to maintenance and regular repair activities of bridges and roads. Prior to January 1, 2004, the rate was 5%, from that date onwards it is 10%.
Scope of application
Vietnam Highway Administration; Provincial Tax Departments under the central government
Key points
- Maintenance and regular repair activities for bridges and roads prior to January 1, 2004 apply a VAT rate of 5% (Point 2.33 Circular No. 122/2000/TT-BTC).
- From January 1, 2004, maintenance and regular repair activities for bridges and roads apply a VAT rate of 10% (Point 3.14 Circular No. 120/2003/TT-BTC).
🌐 Social impact of this document
- Enterprises engaged in bridge and road maintenance and repairs will be subject to a higher tax rate from January 1, 2004.
- Provincial Tax Departments have legal grounds to collect VAT according to the prescribed regulations.
❓ Frequently asked questions
What is the VAT rate applicable for bridge and road maintenance activities prior to January 1, 2004?
The rate of 5% (Point 2.33 Circular No. 122/2000/TT-BTC).
From which date does the maintenance activity of bridges and roads apply a VAT rate of 10%
From January 1, 2004 (Point 3.14 Circular No. 120/2003/TT-BTC).
Full text
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIET NAM |
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No.: 7703/TC/TCT |
Hanoi, June 22, 2005 |
CIRCULAR
OF THE MINISTRY OF FINANCE NO. 7703 TC/TCT DATED JUNE 22, 2005 ON VALUE ADDED TAX RATES
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To: |
- VIETNAM HIGHWAY CORPORATION |
Recently, the Vietnam Highway Corporation and some enterprises have submitted documents regarding the application of value added tax (VAT) rates for road maintenance and repair activities in 2001, 2002, and 2003. The Ministry of Finance hereby provides its opinion as follows:
According to point 2.33, section II, part B of Circular No. 122/2000/TT-BTC dated December 29, 2000 issued by the Ministry of Finance guiding the implementation of Decree No. 79/2000/NĐ-CP dated December 29, 2000 of the Government detailing the implementation of the Law on Value Added Tax (VAT), construction activities are subject to a VAT rate of 5%.
According to point 3.14, section II, part B of Circular No. 120/2003/TT-BTC dated December 12, 2003 issued by the Ministry of Finance guiding the implementation of Decree No. 158/2003/NĐ-CP dated December 10, 2003 of the Government detailing the implementation of the Law on Value Added Tax (VAT) and the Law amending and supplementing certain provisions of the Law on VAT, construction activities are subject to a VAT rate of 10%.
Based on the above regulations, road maintenance and repair activities shall be subject to the VAT rates applicable to construction activities as follows:
- Prior to January 1, 2004, road maintenance and repair activities are subject to a VAT rate of 5%.
- As of January 1, 2004, road maintenance and repair activities are subject to a VAT rate of 10%.
The Ministry of Finance hereby informs the Vietnam Highway Corporation and the Province and City Directorates of Taxation under the Central Government for their knowledge and guidance to relevant units in implementation.
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Nguyen Thi Cuc (Signature) |
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