On 16th December 2019, Hanoi City Tax Department issued Official Letter No. 93846/CT-TTHT. Whereby:
In case the customer is an export processing enterprise who have signed a purchase contract with the Company, in which purchase terms are DAP (delivery at the buyer’s place). If the goods are purchased by the Company from abroad and import procedures haven’t been carried out at the customs office and then sold to customers, it shall be considered as trading between non-tariff areas (from bonded warehouses to non-tariff areas) which is not subject to VAT as prescribed in Clause 20, Article 4 of Circular No. 219/2013/TT-BTC of Ministry of Finance.
In case the Company goes through customs procedures, pays import and export duties in accordance with Customs’ regulations, when selling to customers who are export processing enterprises, 0% VAT rate is applicable if the conditions prescribed in Clause 2 Article 9 of Circular No. 219/2013/TT-BTC of Ministry of Finance are met.
