In order to create consistency in determining value-added tax (“VAT”) revenue of enterprises conducting international travel activities, on March 5, 2024, the General Department of Taxation issued Official Letter No. 801/TCT-CS (“Official Letter 801”) in response to Tourism and Transportation Marketing Joint Stock Company – Viettravel.
Accordingly, the General Department of Taxation determined that for international travel service business activities, the package price includes the costs of meals, accommodation, sightseeing and a number of other overseas expenses (if legal documents are available) then the customer's revenues to pay for the above items are counted as deductions in the price (revenue) used to calculate VAT. Input VAT for package tourism activities in this case is declared and fully deducted according to regulations. This guidance from the General Department of Taxation facilitates travel businesses in determining VAT taxable revenue, contributing to ensuring the interests of businesses.
Official Letter 801 takes effect from the date of issuance./.
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