The General Department of Vietnam Customs assumes that machinery, equipment temporarily exported abroad for leasing, lending rather than for executing construction of works or serving work for certain period of time of an enterprise shall not be exempt from duty according to point a clause 9 Article 16 of the Law on Import and Export Duties No. 107/2016/QH13.
The enterprise has to pay export duty upon carrying out procedures for temporary export and pay import duty upon carrying out procedures for re-import.
However, the case of temporary export of machinery, equipment abroad for leasing, lending shall be exempt from value added tax (VAT) according to the regulations at clause 20 Article 5 of Law on VAT No. 13/2008/QH12 .
|Published||Vietlaw's Newsletter No. 570|