GDVC answers questions for VBF enterprises

Meeting scene. Photo: Quang Hung

Speaking at the meeting, Mr. David Whitehead, member of the VBF Executive Board, Vice President of the Australian Business Association in Vietnam, said that the regular meeting aims to open up opportunity for the business community to discuss on key contents in customs field, trade facilitation and foreign investment in Vietnam.

Mr. David Whitehead thanked the leaders of the GDVC and departments for working with the business community. This is an opportunity to improve the effectiveness of cooperation between VBF and the GDVC, bringing benefits to both sides.

Based on the proposal from VBF, the Customs Modernization Reform Board coordinated with other departments to exchange, discuss and resolve 21 problems from VBF member firms.

At the meeting, representatives of the GDVC’s departments received and resolved problems related to customs procedures, tax policies, etc.

For example, the Customs answered problems related to VAT collection for imported goods supplied by subcontractors to export processing enterprises.

Representatives of enterprises discuss at the meeting. Photo: Quang Hung

Responding to the problem, the representative of the Import-Export Duty Department said that, as per current regulations, if the subcontractor imports goods for the export processing enterprise, the imported goods are subject to VAT.

In the subcontractor implements a contract with the main contractor to import goods for the export processing enterprise, these goods must be subject to VAT and the subcontractor must issue a VAT invoice under regulations.

Earlier, the GDVC issued an official dispatch instructing provincial and municipal customs departments to comply with regulations.

Regarding the problem of some enterprises importing uniforms for workers working in export processing enterprises.

According to the representative of the Import-Export Duty Department, goods imported into the export processing enterprise for use only in the export processing enterprise will be exempt from tax and not subject to tax.

If the goods do not meet the conditions under regulations, the import tax and VAT must be paid.

For the enterprise imports goods from domestic to the export processing enterprise, it does not enough basis to ensure that the goods are only used in the export processing enterprise, so the goods must pay taxes.

On February 28, 2024, the GDVC and VBF organized meetings to instruct and handle 22 requests related to customs policies for export processing enterprises, HS codes, Customs value, C/O, temporary import for re-export of goods, procedures for goods sent to bonded warehouses, administrative sanctions, compliance assessment...