Reduced VAT for Parking Fees in Apartment Buildings: Eligibility and Procedures

• Residents of apartment buildings in Hanoi have been paying a 10% value-added tax for services such as managing the building and parking fees.
• The management fees for apartment buildings are calculated based on the area of the apartment or other areas within the building.
• The real estate management services related to multi-functional apartment buildings are not eligible for the reduced 8% VAT rate.
• Parking management services fall under the category of “Transportation of goods warehousing” and are eligible for the 8% VAT rate.
• Due to lack of information, residents have been paying a 10% VAT rate for parking fees in the building’s basement.
• Some parking facilities in Hanoi and Ho Chi Minh City are eligible for the 8% VAT rate.
• A resident inquired about whether parking in the building’s basement qualifies for the 8% VAT rate and when this would be applicable.
• The tax department in Hanoi provided information on the implementation of VAT reduction policies according to government decrees.

Source: baochinhphu.vn

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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