Domestic enterprises that buy molds from foreign enterprises in Vietnam for use abroad, do not import them to Vietnam, do they pay value-added tax?
Subjects subject to tax on exported and imported goods?
According to Article 2 of the Law on Export Tax, the 2016 import tax regulations on taxable objects are as follows:
"Article 2. Taxable objects
1. Goods imported or exported through Vietnam's border gates or border gates.
2. Goods exported from the domestic market into the non-tariff zone, goods imported from the non-tariff zone into the domestic market.
3. On-spot export and import goods and export and import goods of enterprises in Vietnam that exercise the right to export, to import, or to distribute.
4. Objects subject to export tax and import tax do not apply to the following cases:
a) Goods in transit, border-gate or transshipment;
b) Humanitarian aid goods, non-refundable aid goods;
c) Goods exported from non-tariff zones to foreign countries; goods imported from abroad into non-tariff zones and used only in non-tariff zones; goods moved from one non-tariff zone to another;
d) The oil and gas part is used to pay natural resources tax to the State when exporting.
5. The Government shall detail this Article."
Domestic enterprises that buy molds from foreign enterprises in Vietnam for use abroad, do not import them to Vietnam, do they pay value-added tax? (Image from the internet)
How are objects subject to value-added tax regulated?
According to Article 3 of the Law on Value Added Tax 2008, the taxable objects are as follows:
Goods and services used for production, business and consumption in Vietnam are subject to value-added tax, except for the subjects specified in Article 5 of the Law on Value-Added Tax 2008 as amended by Clause 1 of this Article. 1 Article 1 of the 2013 Law on Value Added Tax, which is not subject to tax, is as follows:
"Article 5. Objects not subject to tax
1. Products of cultivation, husbandry and aquaculture, which have not been processed into other products or are only preliminarily processed, are sold and sold by organizations and individuals themselves and at the stage of import. export.
Enterprises in Vietnam and cooperatives that purchase crop, livestock and aquaculture products that have not yet been processed into other products or are only preliminarily processed and sold to other enterprises in Vietnam or cooperatives are not required to list them. declare, calculate and pay value-added tax but receive input value-added tax deduction.
2. Products are livestock breeds, plant varieties, including breeding eggs, breeding animals, seedlings, seeds, semen, embryos and genetic materials.
3. Irrigation and drainage; plow and harrow the land; dredging canals and ditches in the field to serve agricultural production; agricultural product harvesting services.
4. Salt products are produced from sea water, natural rock salt, refined salt, iodized salt with the main ingredient being sodium chloride (NaCl).
5. State-owned houses sold by the State to tenants.
6. Transfer of land use rights
7. Life insurance, health insurance, learner insurance, other insurance services related to people; livestock insurance, crop insurance, other agricultural insurance services; insurance for ships, boats, equipment and other necessary tools in direct service of fishing; reinsurance.
8. The following financial, banking and securities trading services:
a) Credit granting services include: lending; discount, rediscount negotiable instruments and other valuable papers; guarantee; financial leasing; credit card issuance; domestic factoring; international factoring; other forms of credit extension as prescribed by law;
b) Lending services of taxpayers who are not credit institutions;
c) Securities trading includes: securities brokerage; securities trading; underwriting securities; securities investment consulting; securities depository; securities investment fund management; securities portfolio management; market organization services of the stock exchange or securities trading center; other securities business activities in accordance with the law on securities;
d) Capital transfer includes: transferring part or all of the invested capital, including the case of selling the enterprise to another enterprise for production, business or securities transfer; other forms of capital transfer as prescribed by law;
dd) Selling debt;
e) Trading in foreign currencies;
g) Derivative financial services including: interest rate swaps; forward contracts; futures contract; the right to buy and sell foreign currencies; other derivative financial services as prescribed by law;
h) Sale of collateral for debts of organizations in which the State owns 100% of charter capital established by the Government to handle bad debts of Vietnamese credit institutions.”
9. Medical and veterinary services, including medical examination, treatment and prevention services for humans and animals; Care services for the elderly and disabled
10. Universal postal, telecommunications and Internet services under the Government's program.
11. Services to maintain zoos, flower gardens, parks, street trees, public lighting; funeral service
12. To maintain, repair and build with the people's contributions and humanitarian aid capital for cultural and artistic works, public service works, infrastructure and housing for children. social policy object.
13. Teaching and vocational training according to the provisions of law.
14. Radio and television broadcasting with state budget capital.
15. Publishing, importing and distributing newspapers, magazines, specialized bulletins, political books, textbooks, textbooks, legal documents, scientific and technical books, books printed in ethnic script minorities and propaganda pictures, photographs, posters, including in the form of tapes or discs with audio, video or electronic data; money, print money.
16. Public transport of passengers by bus or tram.
17. Machinery, equipment, spare parts and supplies which cannot be produced and need to be imported for direct use in scientific research and technological development; machinery, equipment, spare parts, special-use means of transport and supplies which cannot be produced and need to be imported to conduct search, exploration and development of oil and gas fields; aircraft, drilling rigs and ships which cannot be produced at home and need to be imported to create fixed assets of enterprises or leased from abroad for use in production, business, lease or sublease.
18. Weapons and equipment used exclusively for national defense and security.
19. Goods imported in the case of humanitarian aid or non-refundable aid; gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, people's armed forces units ; gifts and gifts for individuals in Vietnam according to the levels prescribed by the Government; belongings of foreign organizations and individuals according to the standards of diplomatic immunity; carry-on items in the duty-free baggage allowance.
Goods and services sold to foreign organizations and individuals, international organizations for humanitarian aid and non-refundable aid to Vietnam.
20. Goods transshipped or transited through the Vietnamese territory; goods temporarily imported for re-export; goods temporarily exported or re-imported; raw materials imported for the production or processing of goods for export under production contracts; export processing signed with foreign parties; goods and services are traded between foreign countries and non-tariff zones and between non-tariff zones.
21. Technology transfer in accordance with the Law on Technology Transfer; transfer intellectual property rights in accordance with the Law on Intellectual Property; software.
22. Imported gold in ingots and pieces that have not been processed into fine art products, jewelry or other products.
23. Exported products are exploited natural resources and minerals that have not been processed into other products; exported products are goods processed from natural resources and minerals with the total value of resources and minerals plus energy costs accounting for 51% or more of the product cost.
24. Artificial products used to replace the patient's body parts; crutches, wheelchairs and other specialized equipment for the disabled.
25. Goods and services of business households and individuals with an annual turnover of one hundred million dong or less.
Establishments trading in goods and services that are not subject to value-added tax specified in this Article are not entitled to withhold and refund input value-added tax, except for the case of applying the 0% tax rate specified in Clause 1 of this Article. Article 8 of this Law. Establishments trading in goods and services not subject to value added tax specified in this Article are not entitled to deduction and refund of input value added tax, except for cases where the tax rate 0 is applied. % specified in Clause 1, Article 8 of this Law."
Do domestic enterprises in Vietnam that buy molds from foreign enterprises in Vietnam to use abroad, but do not import them into Vietnam, are they subject to tax?
According to Official Letter 2311/TCHQ-TXNK in 2022 answering tax problems, the General Department of Customs has the following comments:
Pursuant to Article 2 of the Law on Import Tax and Export Tax No. 107/2016/QH14 stipulates taxable objects, including:
Pursuant to Article 3 of the VAT Law No. 13/2008/QH12 stipulating: Goods and services used for production, business and consumption in Vietnam are subject to value added tax.
Pursuant to the above provisions, in case a Vietnamese company purchases molds from the Company abroad, the goods after purchase are used abroad and not imported to Vietnam, no import tax obligations will arise. value added tax on the above goods.
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