Official Dispatch No. 4423/CTHN-TTHT dated February 9, 2023 of the City Tax Department. Hanoi provides guidance on VAT obligations when implementing projects in foreign countries
In case the provision of services takes place both in Vietnam and outside Vietnam but the service contract is signed between two taxpayers in Vietnam or has a permanent establishment in Vietnam, the 0% tax rate only applies to the value of services performed outside Vietnam as prescribed in Clause 1, Article 9 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance.
In case, the contract does not determine the value of services performed in Vietnam separately, the taxable price shall be determined according to the proportion (%) of costs incurred in Vietnam on the total cost. The company in Vietnam must have documents proving the service performed outside Vietnam.