Vietnam: What is the time for importing goods to be eligible for VAT reduction by 2%? What is the time for calculating VAT on imported goods?
What are the criteria for valid invoices on imported goods in Vietnam?
Pursuant to Article 5 of Joint Circular 64/2015/TTLT-BTC-BCT-BCA-BQP on invoices and/or documents for imported goods being sold inland as follows:
- With regard to goods displayed for sale or stored by importers, it is required to have delivery notes (in case of stores not keeping independent accounting records in the same province), delivery notes or invoices (in case of stores keeping independent accounting records or stores not in the same province with the headquarter), or goods receipt note (if goods are stored in warehouses).
- With regard to goods sold or stored by entities other than importers, it is required to have invoices and/or documents of the selling entities as prescribed in the Government's Decree No. 51/2010/NĐ-CP dated May 14, 2010 on invoices for goods sale and service provisions (hereinafter referred to as Decree No. 51/2010/NĐ-CP).
- When goods are transferred by the trader to its affiliated stores or branches in other provinces; transferred among the branches and other affiliated units; returned by an affiliated unit to the trader; offered; displayed at a fair or exhibition, it is required to have invoices or delivery notes and dispatch orders.
- With regard to goods being finished goods imported domestically (sent by another manufacturer/processor in Vietnam as ordered by an overseas importer), raw materials and supplies under outward processing contracts or contracts for import of raw materials for the manufacture of goods for export that may be sold in Vietnam:
+ If the manufacturer/processor of goods for export transport, store, or display them for sale at financially dependent stores in the same province, it is required to have the import declaration and delivery notes;
+ If the manufacturer/processor of goods for export transports, stores, or displays them for sale at affiliated stores in other provinces province or affiliated stores in the same province, it is required to have copies of the import declaration and delivery notes or invoices as prescribed;
+ In case the manufacturer/processor of goods for export sells them for another trader, it is required to have invoices as prescribed. With regard to raw materials imported serving processing contracts, processed goods sold inland at the request of the hirer, it is required to have the customs declaration granted customs clearance as prescribed.
- If the manufacturer/processor of goods for export transports semi-finished goods, raw materials, and fuel to other facilities for further processing, it is required to have the processing contract enclosed with the delivery note and dispatch order.
- With regard to imported goods purchased from an agency competent to sell confiscated goods, it is required to have invoices issued by such agency, which specifies the quantity, category, and value of each type of goods
- With regard to imported goods purchased from a national reserve agency, it is required to have sale invoice issued by the national reserve agency.
- With regard to goods being duty-free gifts, presents; duty-free goods sold within checkpoint economic zones that are repurposed or sold inland, the trader must have documents proving that such goods have been declared and the original receipt for payment of import duty when selling such goods on the market.
What is the time for calculating VAT on imported goods in Vietnam?
Pursuant to Article 8 of Circular 219/2013/TT-BTC as follows:
Time for calculating VAT
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5. For construction and installation, including shipbuilding, VAT shall be calculated when the construction or a work is completed and put into use, Whether the payment is made or not.
6. For imported goods, VAT shall be calculated when the customs declaration is registered.
Thus, for imported goods in Vietnam, VAT shall be calculated when the customs declaration is registered.
Pursuant to Article 25 of the 2014 Customs Law, the time for submitting customs declarations is prescribed as follows:
- After goods are transported to places notified by customs declarants and at least 4 hours before the exit of the vehicle regarding exported goods or at least 2 hours before the exit of the vehicle regarding exported goods delivered by express delivery services;
- Before goods arrive at border checkpoints or within 30 days after goods arrive at border checkpoints regarding imported goods;
What is the time for importing goods to be eligible for VAT reduction by 2% in Vietnam?
Pursuant to Article 1 of Decree 44/2023/ND-CP on VAT policies under Resolution 101/2023/QH15, Appendix I, II, III on the Lists of goods and services that are not eligible for VAT reduction issued together with Decree 44/2023/ND-CP and regulations on the time of calculating VAT on imported goods in Clause 6 Article 8 of Circular 219/2013/TT-BTC as follows
In case a business entity uses goods eligible for VAT reduction according to Decree 44/2023/ND-CP:
- If an invoice must be issued at the time of calculating VAT for specific imported goods from July 1, 2023 to December 31, 2023, the VAT rate of 8% shall be applied.
In case a business entity issues VAT invoices before July 1, 2023 and after December 31, 2022, VAT reduction shall not be applicable according to Decree 44/2023/ND-CP.
When a business entity applies different tax rates, the VAT invoice must clearly state the tax rate of each commodity.
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