Review of VAT exemptions for imported machinery and equipment

According to the General Department of Vietnam Customs, the legal basis for these exemptions includes the Law on Tax Administration 2019; Article 3 of Law No. 71/2014/QH13, which amends and supplements certain articles of tax laws; Clause 1, Article 3 of Decree No. 12/2015/ND-CP, issued by the Government; Clause 2, Article 1 of Circular No. 26/2015/TT-BTC.

These regulations were formulated based on consultations with the Ministry of Agriculture and Rural Development (MARD) regarding VAT exemptions for synchronized components imported for assembling specialized machinery and equipment used in agricultural production, as well as replacement parts for such machinery.

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The General Department of Vietnam Customs has instructed customs departments in provinces and cities to examine the application of VAT policies to ensure compliance with the regulations concerning specialized machinery and equipment used in agricultural production.

For cases where imported goods are declared as machinery, equipment, or replacement parts explicitly listed in legal documents, no confirmation from MARD units is required to apply VAT exemption policies.

For goods declared as synchronized components, machinery, or equipment specialized for agricultural production but not explicitly named in Circular No. 26/2015/TT-BTC or other guiding documents, VAT exemption policies must align with the confirmation issued by the Department of Cooperative Economy and Rural Development or provincial Departments of Agriculture and Rural Development. Any inconsistencies in these confirmations must be addressed based on the guidelines of VAT policy and handling tax following the law on VAT, law on tax administration and law on customs.