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blue-check Regarding VAT on goods sold to export processing zones and inland areas under the CIF term

Official letter No. 91495/CT-TTHT dated October 16th, 2020 of the Department of Taxation of Ha Noi city regarding VAT on goods sold to export processing zones and inland areas under the CIF term
VietlawOnline

In case a company buys goods from a foreign supplier then it directly sells the goods to an export processing enterprise (EPE), such goods are considered to be sold and bought between the foreign supplier and the EPE and on which VAT shall be exempt according to Clause 20 Article 4 of Circular No. 219/2013/TT-BTCstatus2 . Read more

However, in case the company re-sells the goods to an inland enterprise under the CIF term at Vietnamese sea port/air port and the buyers is responsible to carry out import procedure and pay tax, this case is not eligible for 0% VAT according to Article 9 of Circular No. 219/2013/TT-BTCstatus2 . The company has to make out invoice, declare and pay VAT.

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blue-check Regarding VAT on exported services

Official letter No. 4188/CT-TTHT dated April 29th, 2020 of the Department of Taxation of Ho Chi Minh city regarding value added tax (VAT)
VietlawOnline

According to Clause 1b Article 9 of Circular No. 219/2013/TT-BTCstatus2 , in order to be regarded as exported services, the service consumers must be foreigners who do not reside in Vietnam (including Vietnamese citizens residing overseas) and not present in Vietnam during the provision of services. Read more

Accordingly, if a service is consumed outside Vietnam but the buyer is the Vietnamese citizen, the service shall not be considered to be the exported service.

For the case as mentioned at this Official letter, an enterprise in Vietnam leases its wifi routers to domestic customers for consumption outside Vietnam, this service is not regarded as the exported service because the consumer is the Vietnamese citizens. Accordingly, upon collecting charges for leasing the equipment, the applicable VAT rate is still 10%.

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blue-check Regarding VAT on zinc oxide powder

Official letter No. 1610/TCT-CS dated April 23rd, 2019 of the General Department of Taxation regarding refund of value added tax (VAT) on exported products derived from natural resources, minerals

The document is to reply to issues relating VAT on zinc oxide powder Read more

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blue-check Regarding refund of input VAT on exported services

Official letter No. 21836/CT-TTHT dated April 18th, 2019 of the Department of Taxation of Ha Noi city regarding refund of input value added tax (VAT) on exported services
VietlawOnline

According to point dd Clause 1 Article 9 of Circular No. 219/2013/TT-BTCstatus2 , activities of construction and installation in non-tariff zones are considered exported services. Read more

Accordingly, in case a company signs contract to provide construction and installation services for an enterprise in a non-tariff zone, such services shall be considered exported services and entitled to apply 0% VAT (if conditions are met).

If the value added tax amount which has not yet been credited in full is 300 million VND or more and fully meets the conditions at Article 16 of Circular No. 219/2013/TT-BTCstatus2 , it shall be refunded.

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blue-check Regarding VAT on storage service

Official letter No. 83916/CT-TTHT dated December 24th, 2018 of the Department of Taxation of Ha Noi city regarding value added tax (VAT) on exported goods, services.
VietlawOnline

According to Article 9 of Circular No. 219/2013/TT-BTCstatus2 , service exported to a foreign organization shall be entitled to apply 0% VAT only when the service is performed and consumed outside Vietnam. Read more

Accordingly, in case a company sells goods to a foreign buyer and performs the storage service pending the export, the storage service is performed and consumed in Vietnam and therefore it shall not be entitled to 0% VAT.

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blue-check Regarding VAT rates applicable logistics services

Official letter No. 81561/CT-TTHT dated December 12th, 2018 of the Department of Taxation of Ha Noi city regarding value added tax (VAT) rates applicable logistics services
VietlawOnline

In case a company provides logistics services (goods transport support, container lifting, goods loading, unloading, etc.) for export processing enterprises, it shall be entitled to apply 0% VAT if the conditions provided in Clause 2 Article 9 Circular No. 219/2013/TT-BTCstatus2 are met. Read more

If the Company provides the logistics services for companies outside Vietnam, if the services are performed and consumed outside Vietnam, the company shall be entitled to apply 0% VAT.

However, if the services are performed and consumed in Vietnam or provided for domestic enterprises, the company shall be subject to 10% VAT rather than being entitled to apply 0% VAT.

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blue-check Regarding VAT rates applicable to goods delivered at Vietnamese ports

Official letter No. 4185/TCT-CS dated October 29th, 2018 of the General Department of Taxation regarding value added tax (VAT) rate applicable to activities of goods sale and purchase for which delivery and receipt locations are at Vietnamese ports
VietlawOnline

According to point a Clause 1 Article 6 of Decree No. 209/2013/ND-CPstatus2 , sold goods which are delivered and received outside Vietnam shall be entitled to apply 0% VAT. Read more

However, for the case in which goods imported from abroad are sold to Vietnamese enterprises under the term according to which such goods are delivered at Vietnamese seaports or airports, according to opinions of the General Department of Taxation, there are not enough grounds to apply 0% VAT rate.

Regarding procedure for customs declaration and payment of tax at the importation stage with regard to contracts of sale and purchase of goods under the designation according to which Vietnamese enterprises are the final buyers that take responsible to for carrying out such procedure, enterprises should directly contact with customs authorities for having guidelines in details.

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blue-check Regarding VAT on international transportation service

Official letter No. 4037/TCT-CS dated October 17th, 2018 of the General Department Taxation regarding value added tax (VAT) policy applicable to international transportation service
VietlawOnline

International transportation service shall be eligible to apply 0% VAT if the conditions specified in Article 9 of Circular No. 219/2013/TT-BTCstatus2 are met. Read more

This policy is also applied to service of transportation of passengers, luggage and cargoes along international routes from Vietnam abroad or from abroad to Vietnam, or both the departure and arrival are overseas.

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blue-check VAT tariff applicable to imports is no longer applied

Official letter No. 11889/BTC-CST dated October 1st, 2018 of the Ministry of Finance regarding value added tax (VAT) policies applicable to imports
VietlawOnline

According the Ministry of Finance’s opinions, HS codes at the VAT tariff promulgated at Circular No. 83/2014/TT-BTCstatus1 were formed based on the List of imports and exports promulgated together with Circular No. 156/2011/TT-BTCstatus1 . Read more

However, such List of imports and exports has been changed by the new one promulgated together with Circular No. 65/2017/TT-BTCstatus2 and therefore the determination of VAT on imports is no longer carried out according to the VAT tariff promulgated at Circular No. 83/2014/TT-BTCstatus1 but it shall be carried out based on these currently – applied documents:

- Circular No. 219/2013/TT-BTCstatus2 dated December 31st, 2013

- Circular No. 26/2015/TT-BTCstatus2 dated February 27th, 2015

- Circular No. 130/2016/TT-BTC dated August 12th, 2016

- Circular No. 25/2018/TT-BTC dated March 16th, 2018.

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blue-check Regarding VAT rate applicable to counseling service provided and consumed in Vietnam

Official letter No. 2642/CT-TTHT dated April 9th, 2018 of the Department of Taxation of Ho Chi Minh city regarding value added tax (VAT) rate
VietlawOnline

According to Article 9 of Circular No. 219/2013/TT-BTCstatus2 , services consumed in Vietnam are not entitled to apply 0% VAT even the service buyers are outside Vietnam. Read more

Accordingly, in case a company signs a contract with a foreign customer to provide counseling service for activities which are performed in Vietnam, this service is consumed in Vietnam and therefore not entitled to apply 0% VAT (it shall be subject to 10% VAT).

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