Decree No. 148/2004/ND-CP dated July 23, 2004 of the Government amending and supplementing Clause 1, Article 7 of the Government’s Decree No. 158/2003/ND-CP dated December 10, 2003 which details the implementation of the Value Added Tax law and the Law amending and supplementing a number of Articles of the Value Added Tax Law

DECREE

AMENDING AND SUPPLEMENTING CLAUSE 1, ARTICLE 7 OF THE GOVERNMENT’S DECREE NO. 158/2003/ND-CP OF DECEMBER 10, 2003 WHICH DETAILS THE IMPLEMENTATION OF THE VALUE ADDED TAX LAW AND THE LAW AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE VALUE ADDED TAX LAW

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to May 10, 1997 Value Added Tax (VAT) Law No. 02/1997/QH11 and June 17, 2003 Law No. 07/2003/QH11 Amending and Supplementing a Number of Articles of the VAT Law;

At the proposal of the Minister of Finance,

DECREES:

Article 1.- To amend and supplement Clause 1, Article 7 of the Government’s Decree No. 158/2003/ND-CP of December 10, 2003 detailing the implementation of the VAT Law and the Law Amending and Supplementing a Number of Articles of the VAT Law as follows:

“1. The tax rate of 0% shall apply to export goods and services, including goods processed for export as well as export goods and services not subject to VAT.

a/ Export services, including services provided directly to foreign-based organizations and individuals and consumed outside the Vietnamese territory; services provided to export-processing enterprises;

b/ Export goods, including goods exported abroad, goods exported into export-processing zones or goods exported to export-processing enterprises and other specific cases regarded as export under the Government’s regulations;

c/ The following cases shall not be subject to the VAT rate of 0%: international transport; goods and services directly supplied to international transport; overseas tour services; re-insurance services to foreign countries; credit, financial investment and securities investment into foreign countries; export products being exploited but unprocessed minerals prescribed in Clause 26, Article 4 of this Decree, which are not subject to VAT.”

Article 2.- This Decree takes effect 15 days after its publication in the Official Gazette.

Article 3.- The Ministry of Finance shall guide the implementation of this Decree.

Article 4.- The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies and the presidents of the provincial/municipal People’s Committees shall have to implement this Decree.