On December 18, 2013, the Government issued Decree No. 209/2013/ND-CP on detailing and guiding implementation of several articles of Law on Value-Added Tax on exported goods and services (Including: Works built and installed abroad; spare parts for repair, maintenance of means, machinery, equipment for foreign parties…) which will enjoy VAT rate of 0% if several conditions of goods and services types and documentation shall be met…
Concretely, enterprises must provide a value-added invoice of purchased goods or services or a document proving the payment of value-added tax on goods at the stage of importation, and a document proving the value-added tax payment in case of services purchased from foreign organizations without permanent establishments in Vietnam or overseas individuals not residing in Vietnam; provide a payment document not using cash of purchased goods or services, except goods or services valued at under VND 20 million upon each purchase; provide a contract on sale or processing of exported goods or entrusted processing of exported goods or a service provision contract signed with an organization or individual overseas or in a non-tariff area; provide non-cash payment documents for exported goods or services and other documents under law; and customs declarations, for exported goods…
Cases not apply the value-added tax rate of 0% include: Technology transfer, intellectual property transfer abroad; services of reinsurance abroad; credit provision services abroad; capital transfer abroad; securities investment abroad; derivative financial services; services of post and telecommunication; the exported products being exploited natural resources and minerals not yet processed into other products;
This Decree takes effect on January 01, 2014.
