In case the regional project management unit has other legal revenues that are not included in the investment costs of projects assigned to manage, the registration must be made. and pay all taxes, fees and charges in accordance with the current regulations on taxes, fees and charges.

The Phu My Town Construction Investment Project Management Board (in Ba Ria-Vung Tau Province) signs the project management entrustment contract with the investors who are the People's Committees of wards and communes in the area. The value of the contract in the trust contract is subject to VAT, but when the project is finalized, the decision approving the settlement of the competent agency shall cut the VAT again.

Through the receiving and responding system to businesses ‘recommendations, the Phu My town construction investment project management board would like to ask if the decision approving the settlement has cut taxes, the management board must issue invoices and pay VAT or not?

Regarding this issue, the General Department of Taxation - Ministry of Finance answers as follows:

In Article 3, Article 4, Article 5, Article 8 of the Law on VAT No. 13/2008 / QH12 dated June 3, 2008 (amended by Law No. 31/2013 / QH13 dated June 19, 2013 as amended, adding a number of articles of the Law on VAT effective from January 1, 2014, Law No. 71/2014 / QH13 dated November 26, 2014 amending and supplementing a number of articles of the tax laws, taking effect From January 1, 2015, Law No. 106/2016 / QH13 amending and supplementing a number of articles of the Law on VAT, the Law on Special Consumption Tax and the Law on Tax Administration takes effect from 1 July 2016 ) regulations:

- Article 3:

“Article 3.- Taxable objects

Goods and services used for production, trading or consumption in Vietnam are subject to value-added tax, except those specified in Article 5 of this Law”

.- Article 4:

“Article 4.- Taxpayers

Taxpayers include organizations and individuals producing or trading in goods or services subject to value-added tax (below referred to as business establishments) and organizations and individuals importing goods subject to value-added tax (below referred to as importers)”.

- Article 5 provides for 25 groups of goods and services that are not subject to VAT.

- Article 8 regulates the VAT rate.

Pursuant to Article 7 of Circular No. 72/2017 / TT-BTC dated July 17, 2017 of the Ministry of Finance regulating the management and use of revenues from project management activities of investors and management boards using State budget capital as follows:

“Article 7. Performing obligations to the State budget

Regional project management units, specialized project management units receiving revenues from consulting services to investors, other project management boards and other legal revenues from these revenuesnot including in the investment costsof projects assigned to the task of management, must register and pay all taxes, fees and charges in accordance with current laws on taxes, fees and charges. ".

Pursuant to the above provisions, goods and services used for production, business and consumption in Vietnam are subject to VAT, except for those specified in Article 5 of the VAT Law.

VAT payer is an organization or individual that produces and trades in VAT-liable goods and services (hereinafter referred to as business establishment) and organizations and individuals importing VAT-liable goods (hereinafter referred to as business establishment). is the importer).

In case the regional project management unit has other lawful revenues that are not included in the investment costs of projects assigned to manage the tasks, registration and payment of all taxes, fees, and charges under regulations of current law must be made.

Request the unit to compare with the above provisions, as prescribed in Article 7 of the Finance Ministry's Circular No. 72/2017 / TT-BTC dated July 17, 2017, on the management and use of revenues from project management activities of investors, project management units using State budget capital and contact the Tax Department of Ba Ria-Vung Tau Province for specific implementation instructions.