Abolishment of the Circular guiding VAT according to the List of Import Goods of Vietnam

Abolishment of the Circular guiding VAT according to the List of Import Goods of Vietnam​ (Image from the Internet)

Regarding this matter, LawNet provides the following response:

On April 23, 2024, the Minister of Finance issued Circular 25/2024/TT-BTC (abolishing Circular 83/2014/TT-BTC) which guides the implementation of value-added tax based on the List of imported goods to Vietnam.

Abolishment of the Circular guiding VAT according to the List of Import Goods of Vietnam

Provisions in Circular 25/2024/TT-BTC that guide value-added tax based on the List of imported goods to Vietnam will be entirely repealed from June 8, 2024.

It is known that Circular 83/2014/TT-BTC guides the application of value-added tax rates on goods in the stages of import, production, business, and consumption in Vietnam according to the list of imported goods to Vietnam.

The value-added tax schedule issued with Circular 83/2014/TT-BTC comprises:

(1) Detailed Value-Added Tax Rate Schedule by 8-digit code and description of goods according to the List of exported, imported goods to Vietnam issued with Circular 156/2011/TT-BTC, with an additional "Exclusively" column detailing goods characteristics according to the exact name of the goods subject to non-value-added tax or subject to reduced value-added tax as stipulated in Value Added Tax Law, Amending and Supplementing a Number of Articles of the Value Added Tax Law (hereinafter referred to as the Value Added Tax Law) and legal documents guiding the implementation of the Value Added Tax Law.

(2) Value-Added Tax Rates

- The symbol (*) in the tax rate column in the Value-Added Tax Schedule designates goods that are not subject to value-added tax.

Example: Thoroughbred horses for breeding (code 0101.21.00); Disabled person's vehicles (codes 8713.10.00 and 8713.90.00) with the symbol (*) in the tax rate column indicates these goods are not subject to value-added tax.

- The symbol (5) in the tax rate column in the Value-Added Tax Schedule designates goods subject to a 5% value-added tax rate uniformly across importing, manufacturing, processing, or commercial trading (including cases where enterprises, cooperatives pay value-added tax by the deduction method selling semi-processed rubber, semi-processed resin, semi-processed cotton to businesses, cooperatives in the commercial trading stage).

Example: Semi-processed natural rubber (group 40.01) with the symbol (5) in the tax rate column indicates this item applies a 5% VAT rate uniformly in the stages of import, production, or commercial trading. When enterprises, cooperatives pay VAT by the deduction method selling semi-processed rubber to businesses, cooperatives in the commercial trading stage, it still applies a 5% VAT rate.

- The symbol (*,5) in the tax rate column in the Value-Added Tax Schedule designates goods that are not subject to VAT in the stages of self-production, catching for sale, importation, and apply a 5% VAT rate in the commercial trading stage, except for cases stated at Point b, Clause 3, Article 4 Circular 83/2014/TT-BTC.

- The symbol (10) in the tax rate column in the Value-Added Tax Schedule designates goods subject to a 10% VAT rate uniformly across importing, manufacturing, processing, or commercial trading.

Example: Bathtubs (code 3922.10.10) with the symbol (10) in the tax rate column means this item applies a 10% VAT rate in the import stage and also applies a 10% VAT rate in the production, processing, or commercial trading stages.

- The symbol (*,10) in the tax rate column in the Value-Added Tax Schedule designates imported gold bars or pieces that have not been crafted into fine art products, jewelry, or other products (group 71.08) that are not subject to VAT in the import stage but must pay a 10% VAT rate in the stages of production, processing, or commercial trading.

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