Official Letter No. 5544/CTLAN-TTHT dated December 6, 2024, issued by the Long An Provincial Tax Department, regarding Value-added tax (VAT) policies for temporarily imported and re-exported goods:

by KMC Consulting Company Limited

In cases where a company deals with goods categorized as temporarily imported and subsequently re-exported, such goods fall under the category not subject to Value-Added Tax (VAT) as stipulated in Clause 20, Article 4 of Circular No. 219/2013/TT-BTC dated December 31, 2013, issued by the Ministry of Finance.

Input Value-added tax (VAT) associated with invoices related to temporarily imported and re-exported goods is not deductible, as stipulated in Article 14 of Circular No. 219/2013/TT-BTC. Additionally, Value-added tax (VAT) refunds are not applicable for such goods and services exported under the provisions of Article 2 of Circular No. 25/2018/TT-BTC dated March 16, 2018, issued by the Ministry of Finance.

Expenses incurred in relation to temporarily imported and re-exported goods are deductible when determining taxable income for Corporate Income Tax (CIT) purposes, provided they meet the conditions specified in Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015, issued by the Ministry of Finance.

Article 29 of the 2005 Commercial Law on Temporary Import, Re-Export, Temporary Export, and Re-Import of Goods

  • Temporary import and re-export of goods involve the movement of goods from a foreign country or from special zones within Vietnamese territory, which are designated as separate customs zones under the law, into Vietnam. This process includes completing import procedures in Vietnam and subsequently completing export procedures to re-export the same goods out of Vietnam.
  • Temporary export and re-import of goods involve the movement of goods out of Vietnam to a foreign country or into special zones within Vietnamese territory, which are designated as separate customs zones under the law. This process includes completing export procedures out of Vietnam and subsequently completing import procedures to re-import the same goods back into Vietnam.

For more detailed information about this or related VAT support, please don't hesitate to contact us.

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