Goods which are lent and are not imported to Vietnam are non-taxable

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Officers of Ha Nam Customs Branch inspect goods at yards. Photo: H.N

BX Shinsei Vietnam Co., Ltd. raised a question about tax on molds purchased by a domestic enterprise from a foreign enterprise, then the molds are lent to another foreign enterprise and are not imported to Vietnam.

The General Department of Vietnam Customs cites Article 2 of the Law on Import and Export Duty as saying that goods exported and imported through Vietnam’s border and border checkpoints; goods exported from the domestic market into free trade zones; goods imported from free trade zones into the domestic market.

Article 3 of the Law on Value-added Tax stipulates that goods and services used for production, trading or consumption in Vietnam are subject to value-added tax.

Under the regulations, if Shinei Vietnam Co., Ltd buys molds from a foreign company and are used abroad and are not imported to Vietnam, the company will not pay import tax and VAT for those molds, the General Department of Vietnam Customs said.