However, for the case in which goods imported from abroad are sold to Vietnamese enterprises under the term according to which such goods are delivered at Vietnamese seaports or airports, according to opinions of the General Department of Taxation, there are not enough grounds to apply 0% VAT rate.
Regarding procedure for customs declaration and payment of tax at the importation stage with regard to contracts of sale and purchase of goods under the designation according to which Vietnamese enterprises are the final buyers that take responsible to for carrying out such procedure, enterprises should directly contact with customs authorities for having guidelines in details.
This policy is also applied to service of transportation of passengers, luggage and cargoes along international routes from Vietnam abroad or from abroad to Vietnam, or both the departure and arrival are overseas.
However, such List of imports and exports has been changed by the new one promulgated together with Circular No. 65/2017/TT-BTC and therefore the determination of VAT on imports is no longer carried out according to the VAT tariff promulgated at Circular No. 83/2014/TT-BTC but it shall be carried out based on these currently – applied documents:
Accordingly, in case a company signs a contract with a foreign customer to provide counseling service for activities which are performed in Vietnam, this service is consumed in Vietnam and therefore not entitled to apply 0% VAT (it shall be subject to 10% VAT).
However, the Law on value added tax No. 13/2008/QH12 which takes effect from 2009 up to now does not regulates the exemption from VAT on such machinery, equipment.
Accordingly, upon the import of such machinery, equipment to form fixed assets, VAT shall be still paid even on which import duty is exempt.
In the case an enterprise repurposes import duty – exempted machinery and equipment, according to Clause 1 Article 21 of Circular No. 38/2015/TT-BTC, it is required to open a new customs declaration and fully declare, pay tax, fines (if any).
It should note that, under Clause 3 Article 7 of Circular No. 219/2013/TT-BTC, VATable prices of imported goods are import price plus (+) import duty (if any). Thus, upon opening the new customs declaration, the enterprise must also additionally pay VAT calculated upon the payable import duty.
Under this Official letter, in the case a unit, which carries on the activities of construction, installment of works for an EPE, is a foreign contractor that has an execution office in Vietnam, it is also entitled to enjoy 0% VAT.
The input VAT on goods, services used for serving the activities of construction, installment of works for the EPE shall be also deducted/refunded if the conditions provided in Circular No. 219/2013/TT-BTC are met.
Accordingly, in the case the Company performs the service of completion of a hotel project outside Vietnam, this is the exported service for which payment is made in cash without via-bank payment documents, it is not eligible for applying 0% VAT, it must be subject to 10% VAT instead
Accordingly, in the case a company signs a contract with a foreign organization to sell tickets for attending a trade fair held outside Vietnam to Vietnamese customers on behalf of the foreign organization and enjoy commissions calculated upon the number of sold tickets, this service is performed and consumed in Vietnam, it shall be subject to 10% VAT rather than being entitled to apply 0% VAT.