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-BTC . 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-BTC . The company has to make out invoice, declare and pay VAT.
According to Clause 1b Article 9 of Circular No. 219/2013/TT-BTC , 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%.
The document is to reply to issues relating VAT on zinc oxide powder 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-BTC , it shall be refunded.
According to Article 9 of Circular No. 219/2013/TT-BTC , 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.
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-BTC 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.
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.
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.
According the Ministry of Finance’s opinions, HS codes at the VAT tariff promulgated at Circular No. 83/2014/TT-BTC were formed based on the List of imports and exports promulgated together with Circular No. 156/2011/TT-BTC . Read more
However, such List of imports and exports has been changed by the new one promulgated together with Circular No. 65/2017/TT-BTC 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-BTC but it shall be carried out based on these currently – applied documents:
- Circular No. 219/2013/TT-BTC dated December 31st, 2013
- Circular No. 26/2015/TT-BTC dated February 27th, 2015
- Circular No. 130/2016/TT-BTC dated August 12th, 2016
- Circular No. 25/2018/TT-BTC dated March 16th, 2018.
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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