On May 29th, 2019, Hanoi Department of Tax issued the Official Letter No.39723/CT-TTHT. Whereby:
In case the Company signs a contract to sell goods to one foreign organization or individual who is not present in Vietnam and then is assigned by this foreign partner to deliver and make receipt of goods with another Enterprise in Vietnam, it shall be the case of on-spot export according to the provisions of Clause 1, Article 86 of Circular No.38/2015/TT-BTC dated March 25th, 2015 by the Ministry of Finance.
In order to apply the VAT rate by 0% for on-spot exported goods, the Company must meet the conditions specified in Point a, Clause 2, Article 9 of Circular No. 219/2013/TT-BTC dated December 31st 2013 of the Ministry of Finance, including conditions for customs declarations. In case the Company does not have one of the required procedures and documents, it must calculate and pay VAT for domestic consumption goods.
