On December 31, 2007, the Ministry of Finance issued Circular 09/2012/TT-BNV guiding financial policies and customs procedures applicable to the border-gate economic zone in An Giang province in Vietnam.
Goods and services imported into industrial and commercial park are exempt from VAT in Vietnam(Illustrative image)
Circular 162/2007/TT-BTC stipulates that enterprises and individuals with production and business establishments in industrial and commercial park are allowed to use value-added tax invoices in accordance with current regulations, register, declare, and pay value-added tax as specified in this Circular. For cases where goods are not subject to value-added tax, the value-added tax line in the value-added tax invoice is crossed out (x). To be specific:
- Goods and services imported from abroad into industrial and commercial park are not subject to value-added tax (VAT);
- Goods and services exported from industrial and commercial park to abroad are not subject to VAT. Goods and services from domestic Vietnam exported to industrial and commercial park enjoy a value-added tax rate of 0%. Conditions for VAT refund are implemented according to the current legal provisions on VAT refund;
- Goods and services from industrial and commercial park brought into the domestic market must pay VAT for imported goods according to current regulations;
- Goods and services circulating within industrial and commercial park are not subject to VAT.
Details can be found at Circular 162/2007/TT-BTC effective from January 29, 2008.
Ty Na
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