Official Letter 1089/CT-CS dated May, 8, 2025 of the Department of Taxation guiding the VAT policy

Pursuant to the provisions of Clause 1 and Clause 2, Article 14 of Circular No. 219/2013/TT-BTC dated 31/12/2013 of the Ministry of Finance, Article 2 of Circular No. 25/2018/TT-BTC, Circular No. 111/2013/TT-BTC dated 15/8/2013 for business establishments that have both exported goods and services, services sold domestically (subject to VAT and not subject to VAT), business establishments must separately account the input VAT amounts in service of export activities, domestic sales activities not subject to VAT and domestic sales activities subject to VAT. In case separate accounting is not possible, the input VAT amount in service of export activities not separately accounted for is determined as follows:

Business establishments shall determine the deductible input VAT amount in service of VAT-liable activities that cannot be separately accounted for (serving export activities and domestic sales activities subject to VAT) according to the provisions of Clause 2, Article 14 of Circular No. 219/2013/TT-BTC (amended, supplemented at Point a, Clause 9, Article 1 of Circular No. 26/2015/TT-BTC dated 27/02/2015 of the Ministry of Finance). When determining the input VAT amount of export activities that cannot be separately accounted for, the business establishment shall allocate according to the ratio between the turnover of exported goods and services to the total turnover of goods and services subject to VAT (including turnover of goods, taxable services sold domestically, and export turnover) of VAT declaration periods calculated from the tax declaration period following the previous tax refund period to the current tax refund application period.

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