On May 20, 2024, the General Department of Taxation issued Circular 2132/TCT-CS 2024 regarding Value Added Tax (VAT).
The Circular requests that the provincial Tax Department assess the actual documentation to determine whether the infrastructure sharing fee constitutes revenue from transmission and distribution activities related to the investment project for which a Certificate of Investment has been granted. In the event that this fee is not considered project revenue, the provincial Tax Department shall refer to the provisions of VAT legislation, tax management laws, and the stipulations in Article 1 of Decision No. 39/2018/QD-TTg dated September 10, 2018, issued by the Prime Minister, amending and supplementing Article 2 of Decision No. 37/2011/QD-TTg dated June 29, 2011, also issued by the Prime Minister, regarding the support mechanism for wind power projects in Vietnam. Additionally, the Tax Department shall consider the guidance provided by the General Department of Taxation in Official Letters No. 4123/TCT-CS dated October 11, 2019, No. 4468/TCT-CS dated November 1, 2019, and No. 451/TCT-KK dated February 7, 2020 (attached herewith) to ensure compliance with the relevant regulations and jurisdiction.
