Ticket prices for metro line 1 Ben Thanh - Suoi Tien diclosed? Are incomes from passenger transportation by metro subject to VAT?

Ticket prices for metro line 1 Ben Thanh - Suoi Tien diclosed?

On November 21, the People's Committee of Ho Chi Minh City issued a decision on ticket prices for public passenger transport services on the urban railway line 1 Ben Thanh - Suoi Tien (Metro Line 1).

According to the People's Committee of Ho Chi Minh City, single-journey tickets for Metro Line 1 (for citizens traveling on a single route in one day) for cash users range from 7,000 - 20,000 VND (depending on the distance). For citizens purchasing single-journey tickets without using cash, the ticket price ranges from 6,000 - 19,000 VND.

Time-based tickets include: a one-day ticket for 40,000 VND/person (unlimited trips within the day), and a three-day ticket for 90,000 VND/person (unlimited trips within 3 days).

For monthly tickets, general passengers pay 300,000 VND/person (unlimited trips within the month), and for students, it is 150,000 VND/person.

The prices above include passenger physical insurance using public passenger transport services by metro on line 1. Exemptions and discounts are per the resolution of the People's Council of Ho Chi Minh City.

Note: The information is for reference purposes only.

Ticket prices for metro line 1 Ben Thanh - Suoi Tien diclosed? Are incomes from passenger transportation by metro subject to VAT in Vietnam? (Image from the Internet)

Are incomes from passenger transportation by metro subject to VAT in Vietnam?

Based on clause 16, Article 4 of Circular 219/2013/TT-BTC supplemented by clause 2, Article 1 of Circular 26/2015/TT-BTC and amended by point b clause 1, Article 1 of Circular 130/2016/TT-BTC, regulations on cases exempted from tax are as follows:

Tax-Exempt Categories

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16. Public passenger transportation includes public passenger transportation by bus and electric vehicle (including metro) on routes within the province, in urban areas, and on adjacent inter-provincial routes according to legal regulations on transportation.

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Thus, public passenger transport services by metro are not subject to VAT.

What are regulations on the place of VAT submission in Vietnam?

Based on Article 20 of Circular 219/2013/TT-BTC, the regulation on the place for submitting value-added tax is as follows:

Place of Tax Submission

1. The taxpayer shall declare and submit VAT at the locality where production or business activities are conducted.

2. The taxpayer who declares and submits VAT using the deduction method with a branch subjected to dependent accounting located in a different province or city under central authority from where the main office is located must submit VAT at both the locality of the branch and the main office.

3. In case enterprises or cooperatives using the direct method have a production facility in a province or city different from where the main office is located or conduct itinerant inter-provincial sales, the enterprise or cooperative shall declare and submit VAT on the revenue occurring outside the province at the locality with the production facility, or where itinerant sales occur. The enterprise or cooperative does not need to submit VAT on the revenue incurred outside the province at the main office that has already been declared and submitted.

4. In case a telecommunications service business providing postpaid telecommunications services at a provincial level locality different from where the main office is situated and establishes a dependent accounting branch to submit VAT using the deduction method also engages in providing postpaid telecommunications services at that locality, the telecommunications service business shall declare, submit VAT for postpaid telecommunications services as follows:

- Declare VAT on revenue from postpaid telecommunications services of the entire business with the tax office directly managing the main office.

- Submit VAT at both the main office locality and the locality where the dependent accounting branch is located.

The VAT payable at the locality of the dependent accounting branch is determined as 2% (for postpaid telecommunications services subject to VAT at a rate of 10%) of the revenue (excluding VAT) of postpaid telecommunications services at the locality where the dependent accounting branch is located.

5. The declaration and submission of VAT is executed according to the regulations prescribed in the Tax Administration Law and guiding documents.

Thus, the place of VAT submission is regulated at:

- Locality where production or business activities are conducted.

- Locality with the production facility and the locality where the main office is located, if the taxpayer submits VAT using the deduction method with a branch subjected to dependent accounting located in a different province or city under central authority than where the main office is located.

- Locality with the production facility or where itinerant sales occur if the enterprise or cooperative using the direct method has a production facility in a province or city different from where the main office is located or conducts itinerant inter-provincial sales.

- Locality of the main office and at the locality where the dependent accounting branch is located if a telecommunications service business provides postpaid telecommunications services at a provincial level different from where the main office is situated and has established a dependent accounting branch to submit VAT using the deduction method, also engaging in providing postpaid telecommunications services at that locality.