This circular of the Ministry of Finance stipulates the value-added tax (VAT) rate applicable to passenger cable car transportation activities, for implementation by provincial/municipal Tax Departments and relevant enterprises.
Scope of application
Provincial/Municipal Tax Departments; units engaged in passenger cable car transportation
Key points
- Passenger cable car transportation activities shall apply a VAT rate of 5% (Article 2)
- In cases where tax declaration has been made at a rate of 10%, no adjustment will be made
- Enterprises engaged in passenger cable car transportation benefit from the lower tax rate (5%) compared to before. However, enterprises that have declared and paid taxes at a rate of 10% shall not adjust their previously submitted amounts, causing financial difficulties.
🌐 Social impact of this document
- Enterprises engaged in passenger cable car transportation benefit from the lower tax rate (5%) compared to before. However, enterprises that have declared and paid taxes at a rate of 10% shall not adjust their previously submitted amounts, causing financial difficulties.
❓ Frequently asked questions
What is the VAT rate applicable to passenger cable car transportation activities?
The VAT rate applied is 5%
If tax has been declared and paid at a rate of 10%, can it be adjusted?
No, units that have declared and calculated taxes at a rate of 10% shall not adjust their declarations
Full text
LETTER
OF THE MINISTRY OF FINANCE NUMBER 9097/TC-TCT DATED SEPTEMBER 1, 2003
REGARDING VAT RATE FOR PASSENGER CABLE CAR TRANSPORTATION SERVICES
PASSENGER CABLE CAR SYSTEMS
Dear: - Provincial Tax Departments
Recently, the Ministry of Finance received letters from several units inquiring about the VAT rate applicable to passenger transportation services using cable car systems. Regarding this matter, the Ministry of Finance provides specific guidance as follows:
Pursuant to Clause 2.37 Section II Part B 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), transportation activities using cable cars are subject to a VAT rate of 5%.
In cases where VAT has already been declared at a rate of 10%, no adjustment shall be made.
The Ministry of Finance informs Provincial Tax Departments for their knowledge and guidance to relevant units in implementation.
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