On September 4th, 2020 Hanoi Tax Department issued Official Letter No. 81088/CT-TTHT. Whereby:
If the Companies export goods in the form of on-the-spot exports and imports in compliance with legal regulations and meet the conditions in Clause 2 Article 9, Clause 2 Article 17 Circular No. 219/2013/TT-BTC, they will be entitled to apply for the VAT rate of 0%. On the other hand, if the Companies can not fulfill any mandatory documents in the procedures, dossiers as stipulated in Clause 2 Article 17 Circular No. 219/2013/TT-BTC, they shall calculate and pay VAT for the goods as for domestically consumed goods.
If in the term of the goods sales contract, the foreign traders appoint the Company to provide services together with the sales of goods such as installation, warranty, maintenance,. to the consignee in Vietnam (the Service is used in Vietnam), these services shall be excluded from the export service. The Company issues VAT invoices at the tax rate of 10% for these services as regulated by the law.
The Company must make the VAT declaration according to each tax rate for each type of goods, services; if the Company does not determine the tax rate, it will calculate and pay on the tax rate at the highest rate on the goods, services that the Company produces and trades.
