Vietnam: Is the 0% tax rate applicable to exports?

Vietnam: Is the 0% tax rate applicable to exports?

Based on point a, clause 1, Article 9 of Circular 219/2013/TT-BTC, the specific regulations are as follows:

0% Tax Rate

1. The 0% tax rate is applied to exports and services; construction and installation activities abroad and in non-tariff zones; international transportation; goods and services not subject to VAT when exported, except for cases not applying the 0% tax rate as guided in clause 3 of this Article.

exports and services are those sold and supplied to organizations and individuals abroad and consumed outside Vietnam; sold and supplied to organizations and individuals in non-tariff zones; goods and services provided to foreign customers as prescribed by law.

a) exports include:

- exports, including commissioned exports;

- Goods sold into non-tariff zones as prescribed by the Prime Minister of Vietnam; goods sold to duty-free shops;

- Goods sold where the delivery and receipt point is outside Vietnam;

- Spare parts and materials for repair and maintenance of vehicles, machinery, and equipment for foreign parties and consumed outside Vietnam;

- Cases regarded as exports as prescribed by law:

+ Goods processed and forwarded as regulated by commercial law on international goods trading activities and agency activities for purchasing, selling, and processing goods with foreign countries.

+ Goods exported on the spot as regulated by law.

+ Goods exported for sale at fairs, exhibitions abroad.

...

Based on the above regulation, exports are subject to the 0% tax rate.

Vietnam: Is the 0% tax rate applicable to exports? (Image from the Internet)

When is the deadline for export duty payment in Vietnam?

According to Article 9 of the Law on Export and Import Duties 2016, the specific regulation on the deadline for paying export and import taxes is as follows:

- Exported and imported goods subject to tax must pay tax before clearance or release of goods according to the provisions of the Customs Law, except for the case specified in clause 2 of this Article.

- If a credit institution guarantees the payable tax amount, clearance or release of goods is allowed, but late-payment interest must be paid according to the Law on Tax Administration from the date of clearance or release of goods to the tax payment date. The maximum guarantee period is 30 days from the date of registration of the customs declaration.

- If a credit institution has guaranteed but the guarantee period expires and the taxpayer has not paid tax and late-payment interest, the guarantor must fully pay the tax and late-payment interest on behalf of the taxpayer.

- Taxpayers entitled to priority policies according to the Customs Law must pay tax for customs declarations already cleared or released in that month no later than the tenth day of the following month. If this deadline is missed, the taxpayer must pay the full tax debt and late-payment interest according to the Law on Tax Administration.

When is the time for issuing a VAT invoice for exports in Vietnam?

According to clause 1, Article 9 of Decree 123/2020/ND-CP on invoices and vouchers, the specific regulation is as follows:

Time of Issuing Invoice

1. The time of issuing an invoice for selling goods (including selling state assets, confiscated assets, assets forfeited into the state fund, and selling national reserve goods) is at the time of transferring ownership or right of use over the goods to the buyer, irrespective of whether money has been collected or not.

2. The time of issuing an invoice for providing services is when the service provision is completed, irrespective of whether money has been collected or not. If the service provider collects money before or during the service provision, the time of issuing an invoice is the time of money collection (excluding cases of receiving deposits or advances to ensure the performance of service contracts: accounting, auditing, financial consultancy, taxation; valuation; survey, technical design; supervision consultancy; project execution for construction investment).

3. In cases of multiple deliveries or handovers for different items or phases of service, an invoice must be issued for each delivery or handover corresponding to the volume and value of goods or services delivered.

...

Based on the aforementioned regulation, the time of issuing a VAT invoice for exports is at the time of transferring ownership or usage rights over the goods to the buyer, irrespective of whether money has been collected.

What contents must be fulfilled for issuing a 0% VAT invoice in Vietnam?

According to Article 10 of Decree 123/2020/ND-CP guided by clause 2, Article 4 of Circular 78/2021/TT-BTC, when issuing a 0% VAT invoice, the following contents must be included:

- Invoice name, invoice symbol, form number of the invoice.

- Invoice printed by the Tax Department.

- Invoice number.

- Seller's name, address, tax code.

- Buyer's name, address, tax code.

- Name, unit of measure, quantity, unit price of goods/services; total amount without VAT, VAT rate, total VAT amount for each tax rate, total VAT amount, total payment including VAT.

- Seller's signature, buyer's signature.

- The time of issuing an invoice follows the guidance in Article 9 of Decree 123/2020/ND-CP and is displayed in the day, month, year format of the Gregorian calendar.

- The digital signature time on electronic invoices is when the seller and buyer use a digital signature to sign on the electronic invoice, displayed in the day, month, year format of the Gregorian calendar. If the electronic invoice has a different digital signature time from the invoice issuance time, the tax declaration time is the invoice issuance time.

- Tax agency code for electronic invoices with tax agency codes.

- Fees, charges under the state budget, trade discounts, promotions (if any).

- Name, tax code of the organization printing the invoice for invoices printed by the tax authority.

- Alphabets, numbers, and currency displayed on the invoice.