The Company do business of domestic transportation but company did not have the transportation business license and did not own transportation vehicles, which the company engages or rent the transportation vehicles from third party. In this case, is company’s income subjected to VAT?

Panwa: No, in the case of company do business of domestic transportation from a place to any place whether it  uses own trucks or the third party trucks, such service will be considered as the local transportation service which it is  exempted VAT according to Revenue Code section 81(1)(P).