On July 16th, 2021, Bac Ninh Tax Department issued Official Letter No. 2022/CTHNI-TTHT, whereby:
If the domestic enterprises conduct repairing, packaging services for export processing enterprises. If the location where the service is conducted is the company’s factory, the VAT policy for such service shall be applied as follows:
- In case the company takes damaged goods, equipment, goods, etc. from the EPE to the company’s factory for repair and packing services, if there are sufficient customs documents to determine the process of goods is handled and received back from the EPE, the repair and packaging services provided by the company to the EPE will be subject to the VAT rate at 0% when meeting all the conditions for applying the 0% tax rate as prescribed by law.
- In case the company receives damaged goods, equipment, goods, etc. from the EPE to the company’s factory to perform repair and packaging services, but there is no customs dossier to determine the process of goods being shipped. If the company gives and receives back from the EPE, the repair and packing services provided by the company to the EPE will be subject to the VAT rate of 10%.
