Are temporary imports and re-exports subject to tax in Vietnam?
We are preparing to import new cars to Vietnam for the purpose of displaying products within 01 month under temporary import and re-export. With the import of the above car models to Vietnam, do I have to pay taxes?
Pursuant to Point a, Clause 9, Article 16 of the Law on Export Tax and Import Tax 2016 on goods exempt from tax as follows:
9. Goods temporarily imported for re-export or goods temporarily exported for re-import within a certain period of time, including:
a) Goods temporarily imported or exported to participate in fairs, exhibitions, product introduction, sports or art events, or other events; machinery and equipment temporarily imported for re-export for testing, research and development; machinery and equipment, tools temporarily imported or exported to be used for certain period of time or serve overseas processing, except for machinery, equipment, tools, vehicles permitted to be temporarily imported too serve investment projects, construction, installation, or manufacture;
...
Thus, in the case of the company only imports cars to Vietnam under temporary import and re-export within a month, with the purpose to display and promote products at exhibitions. Therefore, according to regulations, it will be exempt from paying tax.
Best Regards!
