This is an important provision stipulated in Circular No. 130/2016/TT-BTC guiding Government Decree No. 100/2016/ND-CP dated July 1, 2016, which details the implementation of the Law amending and supplementing a number of articles of the Value Added Tax Law, the Special Consumption Tax Law, and the Tax Administration Law, and amending a number of articles in tax circulars.
Circular No. 130/2016/TT-BTC stipulates the addition of subjects exempt from value-added tax (VAT), including:
1. Services for the care of the elderly and people with disabilities include medical care, nutrition, and the organization of cultural, sports, recreational activities, physiotherapy, and rehabilitation for the elderly and people with disabilities.
2. Public passenger transport includes public passenger transport by bus and tram (including electric trains) on routes within the province, within urban areas, and on adjacent routes outside the province as prescribed by traffic laws.
3. Export products are resources and minerals that have been extracted but not yet processed into other products, or have been processed into other products but the total value of resources and minerals plus energy costs accounts for 51% or more of the production cost of the processed product; export products are goods processed from resources and minerals where the total value of resources and minerals plus energy costs accounts for 51% or more of the production cost of the processed product.
4. Businesses that manufacture products derived from natural resources and minerals (including direct extraction or purchase for processing) where the total value of natural resources and minerals plus energy costs accounts for 51% or more of the production cost of the processed product when exported are exempt from VAT.
Source: Circular No. 130/2016/TT-BTC
For further information, please see the other services offered by EXPERTIS.
For further details, please contact: 0903 024 034
