Troubleshooting customs procedures and VAT policies for Korean enterprises

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Customs officials guides procedures for enterprises

Removing problems related to on-site import-export procedures

Answering questions from Hansoll Vina Co., Ltd and some other enterprises related to on-site import-export procedures, Ho Chi Minh City Customs Department said that on-spot import-export activities are regulated in Decree 08/2015/ND-CP dated January 21, 2015 of the Government detailing and implementing the Customs Law on customs procedures, customs inspection and supervision.

During the implementation of the proposal on amending and supplementing Decree No. 08/2015/ND-CP, Deputy Prime Minister Le Minh Khai requested the Ministry of Finance and the General Department of Customs to review the implementation of Clause 1, Article 35 of Decree No. 08/2015/ND-CP, to report to the Government for consideration and amendment.

Following the above direction of the Deputy Prime Minister, the General Department of Customs has been gathering opinions from relevant agencies and organizing many conferences and seminars with the business community nationwide.

The Ho Chi Minh City Customs Department also held a meeting with relevant units to actively research, analyze and assess the implementation of on-the-spot import-export procedure so far to ensure legality and avoid disturbance, causing loss to the enterprise.

For the feedbacks and recommendations of Korean enterprises, the Ho Chi Minh City Customs Department will continue to summarize and report to the General Department of Customs.

Regarding the operation of export processing enterprises, VINA Trading Company CO., LTD raised a question that according to Point c, Clause 1, Article 35, Decree 08/2015/ND-CP - “Those traded under the sale or purchase contract between Vietnamese enterprises and overseas organizations or individuals that have no representative in Vietnam, and delivered or received under the designation arrangement between foreign merchants with other enterprises in Vietnam” is subject to on-the-spot import and export, so the company’s trading with foreign traders present in Vietnam (with a representative office in Vietnam) is not subject to on-the-spot import and export, so the company must pay VAT and taxes on imported materials. However, this regulation is not clear, so the company does not know that to which agencies to issue VAT invoices?

Answering the question, the Ho Chi Minh City Customs Department guides that if the company determines that the foreign trader is present in Vietnam, the company’s trading with them is not on-spot import and export. Other procedures comply with current regulations.

Regulations on VAT policies

Regarding the tax field, answering questions from VINA CO., LTD and many other enterprises about problems related to VAT policy, VAT invoices for on-the-spot export activities, Ho Chi Minh City Tax Department guides:

Pursuant to Decree 123/2020/ND-CP dated October 19, 2020 of the Government regulating invoices and documents;

Pursuant to Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Minister of Finance guiding the implementation of the Law on VAT and Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on VAT;

Pursuant to the Government's Decree 08/2015/ND-CP dated January 21, 2015 detailing and implementing the Customs Law on customs procedures, inspection, supervision and control;

Pursuant to Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance providing for customs procedures; customs inspection and supervision; export tax, import tax and tax administration for exported and imported goods (amended by Circular 39/2018/TT-BTC effective from June 5, 2018);

Pursuant to the above provisions, in principle, if the company has on-spot export activities in accordance with the provisions of the law, it is subject to the VAT rate of 0% if it satisfies the conditions specified in Clause 1 of Clause 2, Article 9, Clause 2, Article 17 of Circular 219/2013/TT-BTC. In case the company does not have enough of one of the prescribed procedures and documents, it must pay VAT as for goods for domestic consumption.

In case the company uses electronic invoices according to Decree 123/2020/ND-CP, declares VAT by the deductive method, the company uses VAT invoices for the export of goods and provision of services to foreign countries, on-spot export activities and domestic supply of goods and services as prescribed in Article 8 of Decree 123/2020/ND-CP.

Korean enterprises want to understand clearly tax and customs policies VCN - On the afternoon of September 17th, 2018, the Ministry of Finance in cooperation with the ...

In addition, many questions related to tax refund of Korean enterprises have been answered by Ho Chi Minh City Customs Department and Ho Chi Minh City Tax Department, or noted to report to competent authorities.