Goods and services exported to the free trade zone from Vietnam’s inland area shall apply the VAT rate of 0%

Goods and services exported to the free trade zone from Vietnam’s inland area shall apply the VAT rate of 0% (Illustrative image)

Under Circular 08/2007/TT-BTC, the enterprises in Nghi Son Economic Zone, Thanh Hoa Province may use VAT invoices as prescribed by current law provisions, register, declare, and pay VAT as prescribed in this Circular. For goods exempted from VAT, the line “value-added tax” in the VAT voice is marked with an (x). To be specific:

- The goods and services being produced and sold within the free trade zone, and imported to the free trade zone from abroad and vice versa, are exempted from VAT.

- The goods transferred or sold to other free trade zones from the free trade zone and vice versa are exempted from VAT.

- Goods and services exported to the free trade zone from Vietnam’s inland area are eligible for the VAT rate of 0%.

- The goods and services being imported to Vietnam’s inland area from the free trade zone are subject to VAT on imported goods as prescribed by current law provisions. In particular, when an enterprise in the free trade zone sells to an enterprise, organization, or individual in Vietnam’s inland area, it shall make an invoice without VAT, the line "tax rate" and "VAT" are marked with (x). Enterprises, organizations, and individuals from the inland area (or enterprises in the free trade zone in Nghi Son Economic Zone that make and sell goods in the inland area) only pay VAT on the imported goods under the customs declaration sheet when going through the procedures for importing in the domestic market.

Detailed information can be found in Circular 08/2007/TT-BTC effective from March 3, 2007.

Ty Na

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