Accordingly, in order to remove difficulties for enterprises, the Ministry of Finance regulates some more businesses and services without being liable to VAT tax or applying the tax rate of 0%.

In particular, Credit provision services of organizations are not liable to VAT (previously, credit extension services provided by credit institutions not liable to VAT), Revenues from compensation, bonus, subsidy, amounts from transfer of emission rights and other financial revenues are not liable to VAT; and digitizing services to foreign parties shall apply VAT rate of 0%.

Also at this Circular, the Ministry of Finance also regulates clearly the objectives in issuing invoice and calculating VAT, if the party leasing workshop has issued invoice and calculated VAT when let other enterprise hiring workshop, parties shall make VAT invoice to correct the issued invoice at the VAT rate of 0%. if business establishments other than credit institutions has issued invoices and calculated VAT on interest of providing loans to other organizations, individuals, parties shall make invoice to correct the interest amount of loans to become service not subject to VAT. In case where parties fail to correct the issued invoices, if organizations borrowing and using fund in serve for business activities subject to VAT, they are entitled to deduct the input VAT as prescribed on the base of VAT invoice of the loaning party.

This Circular takes effect on July 01, 2013.

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