Answering FDI enterprises’ queries on tax refund for on-spot export

VCN - At the online conference about accompanying businesses to overcome the Covid-19 pandemic recently held by the General Department of Vietnam Customs, many FDI enterprises and members of the Vietnam Business Forum (VBF) were interested in tax refunds for a number of cases of on-spot export. After the conference ended, the General Department of Vietnam Customs gave specific instructions on this issue.
Professional activities at Hai Phong port area 1 Customs Branch. Photo: T.Bình
Professional activities at Hai Phong port area 1 Customs Branch. Photo: T.Bình

According to Article 34, Article 36, Decree 134/2016/ND-CP amending and supplementing Decree 18/2021/ND-CP: "Imported goods that paid import duty but must be re-exported, shall be refunded and not subject to pay export duty, including goods imported but must be re-exported to abroad. For example, export goods return to goods owners, exporting goods already imported abroad or exported to a non-tariff zone for use in a non-tariff zone. Taxpayers who have already paid import duty on goods imported for production and business but have put them into production for export and have exported products to abroad, or exported to a non-tariff zone, will be refunded the paid amount of import duty."

According to VBF, as stipulated above, in case goods are exported to foreign countries or into non-tariff zones, enterprises will be entitled to a tax refund. In the case of on-spot export (foreign enterprise appointed to deliver goods to a domestic enterprise), tax shall not be refunded for imported raw materials, which are used in the production of goods for on-spot export.

Meanwhile, if importing under the type of export processing/production from the beginning, they are still exempt from tax (point g, clause 2, Article 10 and point e, clause 2, Article 12 of Decree 134, respectively amended in Articles 1.4 and 1.6 of Decree 18).

VBF also proposed the General Department of Vietnam Customs have synchronous guidance on tax refunds for on-spot export. Specifically, goods imported under the type of business that are put into production for export and have been exported abroad exported to a non-tariff zone or on-spot, the enterprise will be entitled to a tax refund for imported goods constituting in the exported product.

Besides that, for goods that are imported, but then re-exported to a foreign country include the export to return goods back to the owner, export of goods that have been imported to a foreign country, or export of goods into a non-tariff zone for use in a non-tariff zone or on-site export, the enterprise will be refunded the import tax.

Responding to the proposal of VBF, according to the General Department of Vietnam Customs, on tax refund for imported goods under the type of business import and put into production for export: Pursuant to Article 36 of Decree No. 134 stipulating that taxpayers have paid import tax on goods imported for production but have been put into production for exported goods and exported products abroad, or exported into a non-tariff zone, shall be refunded the paid import tax.

Also based on the above provisions, in the case of imported goods according to the type of business import which has been paid import tax, the enterprise has put into production of exported goods and has exported the products abroad or exported the products to the non-tariff zone for use in the non-tariff area, the import tax will be refunded.

Other cases that do not export to foreign countries or do not export to non-tariff zones are not eligible for import tax refund.

As for imported goods and then re-exported, according to the General Department of Vietnam Customs, based on Article 34 of Decree No. 134, which is amended and supplemented in Clause 17, Article 1 of Decree 18, goods are imported but must be re-exported to abroad including exporting to return to goods owners, exporting goods that already imported to abroad or exporting into non-tariff zones for use in non-tariff zones. The re-export of goods must be done by the original importer or the person authorized by the original importer to entrust the export.

Thus, for imported goods that have paid import tax but are not re-exported abroad or are not re-exported into a non-tariff zone but are re-exported on the spot as designated by foreign traders for other domestic enterprises, they are not eligible for import tax refund.

On the other hand, taxpayers have paid import tax on goods imported for production and business but put into production of export goods (including goods delivered for processing) and have exported products (including on-spot exports): Pursuant to Article 36 of Decree No. 134 stipulating that taxpayers have paid import tax on goods imported for production and business but have been put into production of exported goods and have exported products to foreign countries, or exported products into the non-tariff zone for use in the non-tariff zone, the paid import tax shall be refunded.

Thus, Article 36 of Decree 134 does not stipulate that goods imported for production and that are delivered to another organization or individual to reprocess a part of the production process are exempt from import tax as for goods imported for processing, production for export specified in Articles 10 and 12 of Decree 134/2016/ND-CP. Therefore, in case an enterprise has paid tax on imported goods but then does not directly put into production of export goods but delivered to process a part of the production stage, it is not exempt from import tax.

Also, according to the provisions of Article 36 of Decree 134, in the case of imported goods according to the type of business import, for which import tax has been paid, the enterprise has put the export goods into production and has exported the products abroad or exported the products into non-tariff zones for use in a non-tariff zone, import tax will be refunded.

For the cases of not exporting products to foreign countries or not exporting products to non-tariff zones, it will not be eligible for import tax refund.

By Quang Hùng/Thanh Thuy

Related News

Principle of reciprocity of the value chain in the CPTPP market

Principle of reciprocity of the value chain in the CPTPP market

VCN - Vietnamese enterprises are exposed to many opportunities and benefits if they can take advantage of resources from imports and technology transfer when participating in the supply chain of FDI enterprises in CPTPP.
Businesses anticipate new policies on customs procedures and supervision

Businesses anticipate new policies on customs procedures and supervision

VCN - With this year’s import-export turnover estimated at nearly US$800 billion and forecasting to surpass this milestone next year, the business community holds high expectations for upcoming amendments and supplements to customs management, procedures, and supervision policies. These changes are expected not only to facilitate trade but also to enhance state management efficiency and support economic development.
Significant changes ahead in the management of processing, export production, and export processing enterprises

Significant changes ahead in the management of processing, export production, and export processing enterprises

VCN - The management of goods in the processing, export production (EP), and export processing enterprise (EPE) sectors will undergo significant changes in customs procedures, aiming to streamline operations and create more favorable conditions for businesses.
FDI firms boost Mong Cai Customs revenue by over VND535 billion

FDI firms boost Mong Cai Customs revenue by over VND535 billion

VCN - Revenue from FDI enterprises reached VND 535.7 billion, accounting for nearly 30% of the total revenue implemented by Mong Cai Border Gate Customs Branch, Quang Ninh Customs Department in the first 9 months of 2024.

Latest News

Vietnam Customs forms implementation task force on developing customs procedures

Vietnam Customs forms implementation task force on developing customs procedures

VCN - Decision 135/QD-TCHQ, recently issued by the General Department of Vietnam Customs, establishes a task force to develop and implement new customs procedures. The task force will be headed by Deputy Director General Au Anh Tuan.
Quang Tri Customs launches business support initiatives

Quang Tri Customs launches business support initiatives

VCN - Quang Tri Customs considers the business community as partners, continuing to facilitate import-export, immigration, investment and tourism activities in the area.
Hai Phong Customs’ revenue rises about VND 1,000 billion

Hai Phong Customs’ revenue rises about VND 1,000 billion

VCN- In the first month of the year, Hai Phong Customs' revenue increased by nearly VND1,000 billion.
Administrative reform: Khanh Hoa Customs delivers impressive results

Administrative reform: Khanh Hoa Customs delivers impressive results

VCN - The Khanh Hoa Customs Department achieved a "good" ranking among the six vertical agencies in Khanh Hoa Province, with an administrative reform index of 91.28%.

More News

GDVC sets goal of widely disseminating Customs policies

GDVC sets goal of widely disseminating Customs policies

VCN – The General Department of Vietnam Customs (GDVC) has issued a plan to disseminate and educate the law; and support and provide information in 2025.
Hai Phong Customs sets out 15 tasks to achieve the revenue target of VND 72,000 billion

Hai Phong Customs sets out 15 tasks to achieve the revenue target of VND 72,000 billion

VCN – Hai Phong Customs Department has issued Directive No. 624/CT-HQHP dated January 21, 2025 on drastically implementing solutions to facilitate trade, improve the effectiveness of state management, and strive to achieve the revenue target of 2025.
Over 1,500 customs declarations processed by Hai Phong Customs during Tet

Over 1,500 customs declarations processed by Hai Phong Customs during Tet

VCN - Hai Phong Customs Department processed 1,547 customs declarations during the Tet holiday period
Hai Phong Customs strives to perform tasks from the beginning of the year

Hai Phong Customs strives to perform tasks from the beginning of the year

VCN – Hai Phong Customs Department has actively and effectively implemented solutions to accomplish tasks and achieve targets.
Ho Chi Minh City: Foreign visitors spend more than VND1,500 billion to buy goods upon exit

Ho Chi Minh City: Foreign visitors spend more than VND1,500 billion to buy goods upon exit

VCN - According to the Ho Chi Minh City Customs Department, in 2024, the unit refunded VAT on goods that foreigners and oversea Vietnamese residents brought with them when leaving the country with a value of over VND1,540 billion.
3,500 customs declarations handled in Lang Son over Tet

3,500 customs declarations handled in Lang Son over Tet

VCN - During the 2025 Lunar New Year (Year of the Snake), Lang Son Customs Department processed nearly 3,500 customs declarations valued at over US$306 million.
Hai Phong Customs processes more than 1,500 declarations during 2025 Lunar New Year holiday

Hai Phong Customs processes more than 1,500 declarations during 2025 Lunar New Year holiday

VCN - During the 2025 Lunar New Year holiday, Hai Phong Customs Department processed 1,547 declarations.
US$10.5 million in trade flows through Binh Duong Customs during Tet  During the 2025 Lunar New Year

US$10.5 million in trade flows through Binh Duong Customs during Tet During the 2025 Lunar New Year

VCN - During the 2025 Lunar New Year holiday, the Binh Duong Customs Department arranged for staff to be on duty, ensuring quick and timely customs clearance, helping import and export businesses avoid interruptions and maintaining a smooth flow of goods.
Proactive customs measures for express parcels: Tightening control over import-export goods

Proactive customs measures for express parcels: Tightening control over import-export goods

VCN - International express delivery companies are the main entities responsible for handling import and export customs procedures on behalf of the recipients. The Express Customs Branch (HCM City Customs Department) has been proactive in introducing various measures to both promote trade and maintain strict control over import and export goods
Read More

Your care

Latest Most read
Vietnam Customs forms implementation task force on developing customs procedures

Vietnam Customs forms implementation task force on developing customs procedures

Decision 135/QD-TCHQ, recently issued by the General Department of Vietnam Customs, establishes a task force to develop and implement new customs procedures.
Quang Tri Customs launches business support initiatives

Quang Tri Customs launches business support initiatives

Quang Tri Customs considers the business community as partners, continuing to facilitate import-export, immigration, investment and tourism activities in the area.
Hai Phong Customs’ revenue rises about VND 1,000 billion

Hai Phong Customs’ revenue rises about VND 1,000 billion

VCN - Notably, the revenue in January increased by VND 883 billion (or 16.7%) compared to the same period in 2024.
Administrative reform: Khanh Hoa Customs delivers impressive results

Administrative reform: Khanh Hoa Customs delivers impressive results

The Khanh Hoa Customs Department achieved a "good" ranking among the six vertical agencies in Khanh Hoa Province, with an administrative reform index of 91.28%.
GDVC sets goal of widely disseminating Customs policies

GDVC sets goal of widely disseminating Customs policies

VCN - Additionally, the GDVC aims to unify the direction and coordination within and outside the industry on the dissemination and education of laws for customs officials; to support, and provision of information to relevant organizations and individuals.
Mobile Version