Advisories

Updates on Maersk A/S’s applicable VAT on freight and other charges in Vietnam

25 February 2020

We would like to express our sincere thanks for your kind cooperation and valued support to Maersk A/S. We always make non-stop efforts to provide you the best services with highest quality.

As you are aware, Maersk A/S perform ocean businesses through its local agency in Vietnam, which is Maersk Vietnam. Maersk Vietnam will then issue VAT invoice to collect revenue on behalf of Maersk A/S in Vietnam.

General rules are as below:

  • The revenue derived from Vietnam by Maersk A/S will be subject to FCT-VAT (Foreign contractor Tax – Value Added Tax) with the below tax rate:
Category FCT-VAT
Category
Freight (F)
FCT-VAT
0%
Category
Handling charges (H)
FCT-VAT
5%
Category
D&D
FCT-VAT
5%
Category
Trucking (T)
FCT-VAT
3%
Category
Local charges (L)
FCT-VAT
5%
Category
Penalty (P)
FCT-VAT
N/A
  • FCT-VAT will not be applied for the services which are performed and consumed outside of Vietnam.
  • FCT-VAT charged to our customers are generally an allowable input credits in customers’ VAT returns.

Recently, Maersk A/S has conducted the review on the freight and charges which are currently provided by Maersk A/S in relation to the inbound shipments and outbound shipments related to Vietnam. As a result, changes in the applicable FCT-VAT rate on the freight and charges are proposed. Please refer to the attached appendix for more information on the updated FCT-VAT rate.

The updated FCT-VAT rate will be applicable since 9th March 2020.

If you have any questions, please feel free to reach out to your local sales or customer service representative. You will find contact details of our local offices on our website.

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