Will goods imported and then exported to another country be eligible for VAT refund from July 1, 2025?
Will goods imported and then exported to another country be eligible for VAT refund from July 1, 2025?
Pursuant to point a, clause 1, Article 15 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), the regulations on VAT refund for exports are as follows:
VAT Refund
- The regulations on tax refunds for exports are as follows:
a) Business establishments in a month or quarter, if they have exported goods or services with input VAT that has not been fully deducted and amounts to 300 million VND or more, are eligible for VAT refunds on a monthly or quarterly basis, except for goods imported and then exported to another country;
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Thus, once the Law on Value-Added Tax 2024 takes effect on July 1, 2025, goods imported and then exported to another country will not be eligible for VAT refunds.
Will goods imported and then exported to another country be eligible for VAT refund from July 1, 2025? (Image from the Internet)
When does the value-added tax apply to value-added tax in Vietnam?
Based on Article 3 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), the regulations on subjects liable to VAT are as follows:
Subjects liable to tax
Goods and services used for production, business, and consumption in Vietnam are subjects liable to VAT, except for the subjects stipulated in Article 5 of this Law.
At the same time, in accordance with the regulations in Article 5 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), which specifies the subjects not liable to VAT.
Thus, from July 1, 2025, imported goods liable to VAT are those used for production, business, and consumption in Vietnam, except for the following cases not liable to VAT:
- Products from plants, plantation forests, livestock, aquaculture and fisheries not yet processed into other products or only through ordinary preliminary processing by organizations or individuals producing or catching at the import stage.
- Imported goods such as newspapers, magazines, newsletters, special publications, political books, textbooks, educational materials, legal documents, science-technical books, books for external information, books printed in minority languages, and propaganda posters, including audio or video tapes, electronic data; money, money printing.
- Machinery, equipment, spare parts, and materials that are not produced domestically and need to be imported for direct use in scientific research and technology development.
- Specialized vehicles and materials not domestically produced, needed for exploration and development of oil and gas fields.
- Aircraft, helicopters, gliders, oil rigs, and ships not produced domestically, which are imported to form fixed assets for enterprises or rented from abroad for production, business, or lease purposes.
- Imported products and services for national defense and security industries as per the list issued by the Prime Minister of Vietnam.
- Imports in cases of humanitarian aid and non-refundable aid. Goods and services sold to foreign organizations and individuals or international organizations for humanitarian aid, non-refundable aid to Vietnam.
- Temporarily imported goods for re-export.
- Temporarily exported goods for re-import.
- Imported raw materials for producing and processing export goods according to contracts signed with foreign parties.
- Imported goods from abroad by financial leasing companies directly transported to duty-free zones for financial leasing to enterprises in these zones.
- Gold in bar or piece form not crafted into fine art, jewelry, or other products at the import stage.
- Imports in the following cases:
+ Gifts to state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, and armed forces units within the import tax exemption limits as regulated by laws on export and import taxes;
+ Gifts within the import tax exemption limits as regulated by laws on export and import taxes from foreign organizations and individuals to Vietnamese individuals; goods of foreign organizations and individuals following diplomatic immunity standards and moving properties within the import tax exemption limits as regulated by laws on export and import taxes;
+ Goods within the standard of duty-free luggage according to regulations of laws on export and import taxes;
+ Goods imported as donations or sponsorships for disaster, epidemic, and war prevention, mitigation, and recovery according to regulations of the Government of Vietnam.
+ Goods traded across the border to serve the production and consumption needs of border residents as per the list of goods traded by border residents and within the import tax exemption limits according to laws on export and import taxes;
+ Artifacts, relics, and national treasures as defined by cultural heritage laws imported by state authorities.
When is the VAT determination time for imported goods in Vietnam under current regulations?
Pursuant to Article 8 of Circular 219/2013/TT-BTC, which prescribes the time of VAT determination as follows:
Time of VAT Determination
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- For construction and installation, including shipbuilding, it is the time of acceptance, handover of works, work items, or completed construction and installation volume, regardless of whether payment has been collected or not.
- For imported goods, it is at the time the customs declaration is registered.
Therefore, the time of VAT determination for imported goods under the current regulations is from the time of customs declaration registration.
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