• Service: Tax, Global Indirect Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 9/26/2013

Vietnam - VAT rates for export-processing, non-tariff zones, “on-the-spot exports” 

September 26:  Vietnamese tax authorities addressed the rates of value added tax (VAT) for export-processing enterprises, enterprises in non-tariff zones, non-tariff zones, and “on-the-spot exports.”

The guidance is contained in Official Letter No. 2616/TCT-CS and provides:

  • There is no VAT (zero VAT) on goods and services provided by foreign contractors to export-processing enterprises, enterprises in non-tariff zones and non-tariff zones.
  • There is a 0% rate of VAT on goods and services sold or provided by domestic enterprises to non-tariff zones, and goods processing for “on-the-spot export.”
  • The 0% rate of VAT does not apply to goods that are not exported but are used for production or processing goods for domestic sales.

Read a September 2013 report (English) [PDF 402 KB] (or Vietnamese [PDF 455 KB]) prepared by the KPMG member firm in Vietnam: Technical Update: September 2013

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