Value Added Tax Policy on Goods Imported by Contractors

1. Tax policy for contractors (located in the non-tariff zone) importing goods from abroad to build factories, offices, and install equipment for EPEs

• According to official dispatch No. 533/TCHQ-TXNK dated February 1, 2024:

“Pursuant to Article 2 of the VAT Law No. 13/2008/QH12 stipulates that VAT is a tax calculated on the added value of goods and services arising in the process from production, circulation to consumption.

Pursuant to Article 3 of VAT Law No. 13/2008/QH12, goods and services used for production, business and consumption in Vietnam are subject to VAT, except for the subjects specified in Article 5 of this Law. This law.

Pursuant to Article 4 of the VAT Law No. 13/2008/QH12 stipulates that VAT payers are organizations and individuals that produce and trade in goods and services subject to VAT and organizations and individuals that import taxable goods. VAT.

Pursuant to Clause 20, Article 5 of the VAT Law No. 13/2008/QH12, goods and services purchased and sold between foreign countries and non-tariff zones and between non-tariff zones are not subject to VAT.

Pursuant to Clause 20, Article 4 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance regulating goods and services traded between foreign countries and non-tariff zones and between non-tariff zones. customs duties with each other are not subject to VAT.

Pursuant to the above regulations, in case a contractor (located in a non-tariff zone) imports goods from abroad to build factories, offices, and install equipment for EPEs, the imported goods are subject to the following regulations: are not subject to VAT.”

2. Tax policy for contractors & subcontractors (not located in the non-tariff zone) importing goods to perform contracts with main contractors to install equipment for EPEs

• Pursuant to Official Dispatch No. 6010/TCHQ-TXNK dated October 12, 2018:

“Pursuant to Clause 20, Article 5 of VAT Law No. 13/2008/QH12; Clause 20, Article 4 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance stipulates that goods traded between foreign countries and non-tariff zones and between non-tariff zones are subject to are not subject to VAT. Thus, in case the Company is an enterprise in a non-tariff zone when importing goods from abroad into the non-tariff zone, the imported goods are not subject to VAT.

In case the Company is a domestic enterprise, when importing goods to build factories for EPEs, it must declare and pay VAT. When exporting goods to export processing enterprises, 0% VAT is applied and is allowed. declare, deduct, and refund taxes according to the provisions of Article 2 of Circular No. 25/2018/TT-BTC dated March 16, 2018 of the Ministry of Finance. For VAT declaration, deduction, and refund, the Company is requested to contact the domestic tax authority for instructions on implementation."

• Pursuant to Official Dispatch No. 533/TCHQ-TXNK dated February 1, 2024:

“In case a subcontractor (not located in a non-tariff zone) imports goods to perform a contract with the main contractor to install equipment for an EPE, the subcontractor shall issue a 10% VAT invoice to the main contractor (not located in the non-tariff zone) according to regulations.”

3. Conclusion

Above is an article clarifying the value added tax policy for goods of import subcontractors for construction of EPEs. The article is based on practical experience of DOLPHIN Company. In addition, to update good articles about import-export or ship freight rates; train schedule. Customers can follow the fanpage to be updated with the latest articles.

If you have any questions or comments, please contact our DOLPHIN Company hotline or email according to the information below:

• DOLPHIN SEA AIR SERVICES CORPORATION
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Excerpt from source:

1. https://thuvienphapluat.vn/cong-van/Xuat-nhap-khau/Cong-van-533-TCHQ-TXNK-2024-thue-gia-tri-gia-tang-hang-hoa-nhap-khau- 599455.aspx
2. https://thuvienphapluat.vn/cong-van/Xuat-nhap-khau/Cong-van-6010-TCHQ-TXNK-2018-xu-ly-thue-nhap-khau-va-thue-gia-tri- family-396828.aspx

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