On February 17, 2025, the Ministry of Finance issued Official Letter No. 1872/BTC-TCT to give opinions on VAT policies for goods from inland brought into bonded warehouses. Accordingly, the Ministry of Finance gives the following views:
In case a domestic enterprise sells goods to a foreign trader with a presence in Vietnam and is appointed to deliver goods to another Vietnamese enterprise (third party), this transaction is not eligible for the application of the VAT rate of 0% according to Article 9.1 of Circular No. 219/2013/TT-BTC:
“Article 9. Tax rate 0%
1. Tax rate of 0%: applicable to exported goods and services…
Exported goods and services are goods and services sold or supplied to organizations and individuals abroad and consumed outside Vietnam; selling and supplying to organizations and individuals in non-tariff zones…”.
Specifically, goods in this transaction are not sold to foreign enterprises and consumed outside the territory of Vietnam. At the same time, goods are also not sold to enterprises in the tariff zone for consumption in the non-tariff zone. Therefore, this transaction is not eligible for the 0% VAT rate.
(According to Official Letter No. 1872/BTC-TCT dated February 17, 2025)
RELEVANT NEWS:
- Value-added Tax Policies For International Goods Trading Transactions
- Extension Of Vat Reduction For The First Half Of 2025
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