Guidance on declaring 8% VAT on VNACCS/VCIS of the General Department of Vietnam Customs

Guidance on declaring 8% VAT on VNACCS/VCIS of the General Department of Vietnam Customs
Lê Trương Quốc Đạt

This is the content of Official Dispatch No. 3431/TCHQ-TXNK dated June 30, 2023 on implementation of Decree No. 44/2023/ND-CP on VAT reduction, which is promulgated by the General Department of Vietnam Customs.

Guidance on declaring 8% VAT on VNACCS/VCIS of the General Department of Vietnam Customs

According to the Official Dispatch, the General Department of Vietnam Customs requests Customs Departments of provinces and cities to instruct customs declarants to declare 8% VAT on VNACCS/VCIS as follows:

- Select code VB205 to declare 8% VAT.

The code VB205 shall not be used for items that are not subject to VAT and items that are subject to 0%, 5% and 10% VAT (according to regulations in the Law on Value-Added Tax).

- For reduction of VAT rate of from 10% to 8%, the code VB205 shall only apply to customs declarations which are made from 00:00 (12 a.m.) of July 01, 2023 (date of registration on the customs declarations).

If the customs declaration is made before 0:00 of July 01, 2023 (the date of registration specified on the customs declaration is prior to the date on which Decree No. 44/2023/ND-CP comes into force), 8% VAT shall not be applied (the code VB205 shall not be applied).

Some remarks of the General Department of Vietnam Customs regarding the reduction of VAT

The General Department of Vietnam Customs requests the Customs Departments of provinces and cities to disseminate the contents of Decree No. 44/2023/ND-CP among customs officials at Customs Departments, affiliated Sub-Departments and customs declarants in their provinces/cities. To be specific:

- Regarding reduction of VAT:

+ The reduction of VAT by 2% shall apply to goods that are applying 10% VAT (which will be reduced to 8%), except for the following goods categories: Telecommunications, information technology, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products and excisable goods according to Clause 1, Article 1 of Decree 44/2023/ND-CP.

+ VAT reduction does not apply to the articles specified in Appendices I, II and III enclosed with Decree No. 44/2023/ND-CP.

- Regarding the list of goods not eligible for VAT reduction:

+ The HS codes specified in column (10) Appendix I and column (10) Part A and column (4) Part B Appendix III are for reference only.

HS codes of goods imported in reality shall be determined in accordance with regulations on goods classification in the Customs Law and legislative documents and instructions on implementation of the Customs Law.

+ HS codes of goods imported in reality shall be declared on the lines with the asterisk (*) in column (10) Appendix I, column (10) Part A and column (4) Part B Appendix III.  

For more details, see Official Dispatch No. 3431/TCHQ-TXNK, which is promulgated on June 30, 2023.

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