Do export processing enterprises selling goods into the domestic market have to issue invoices in Vietnam?

Do export processing enterprises selling goods into the domestic market have to issue invoices in Vietnam? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Are export processing enterprises in Vietnam allowed to sell goods into the domestic market?

Pursuant to the provisions of Clauses 20 and 21, Article 2 of Decree 35/2022/ND-CP, export processing enterprise refers to an enterprise performing the export processing function (a specialized act of manufacturing of exported commodities and provision of services for production of exported products and exportation) in an export processing zone, industrial zone and economic zone.

According to Clause 11, Article 26 of Decree 35/2022/ND-CP, export processing enterprises may sell goods into the domestic market. 

At the same time, According to Clause 4, Article 26 of Decree 35/2022/ND-CP, any trade in goods between export processing enterprises and other areas within the territory of Vietnam, except free trade zones, shall be defined as an export and import relation, except in cases where export processing enterprises sell or liquidate used property and goods into the domestic market under the provisions of law on investment and other regulations of relevant legislation

At the time of selling or liquidating them into the domestic market, if export or import management policies do not apply, except to the extent that they are put under the control under regulatory requirements or standards, and the specialized inspection that have not yet been carried out upon arrival; the goods are subject to the permit-based management requirements, import thereof must depend on the written consent from the licensing agency.

Thus, export processing enterprises are allowed to sell goods into the domestic market. This trading relationship is considered an export-import relationship, except in the case of selling or liquidating used property and goods into the domestic market or other items as prescribed by law.

2. Do export processing enterprises selling goods into the domestic market have to issue invoices in Vietnam?

Pursuant to Clause 1, Article 4 of Decree 123/2020/ND-CP, when selling goods or providing services, the enterprises shall issue invoices following the rules for issuance, management and use of invoices and records are prescribed as follows:

When selling goods or providing services, the seller shall issue and send invoices to buyers (including goods/services used for sales promotion, advertising or as samples, goods/services gifted, donated, exchanged or used as salary payment to employees and internal use (except goods which are internally rotated in production process), and goods rented, lent or returned). Such invoices shall have adequate contents written according to the provisions in Article 10 hereof, except e-invoices which must follow the standard format prescribed by tax authorities as prescribed in Article 12 of Decree 123/2020/ND-CP

In addition, at Point b, Clause 2, Article 8 of Decree 123/2020/ND-CP, Organizations or individuals in free trade zones (including export processing enterprises according to Clause 20, Article 4 of Circular 219/2013/TT-BTC) that sell goods or provide services to the domestic market, sell goods or provide services to other organizations/individuals in free trade zones, or sell goods or provide services to a foreign market.

Note: In such cases, invoices must bear the phrase “Dành cho tổ chức, cá nhân trong khu phi thuế quan” ("For organizations/individuals in free trade zones”).

Therefore, when export processing enterprises sell goods into the domestic market, they need to issue invoices according to the above regulations.

Nguyen Ngoc Que Anh

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