QUESTION: Our company is having 01 lot of export to Serbia through Singapore transit port, customers refuse to receive goods due to packing error, so we have to import goods to Vietnam when the goods arrive at the port of medium – Import goods (in the form of re-import) from the Singapore entrepot port to Vietnam, then re-export is 26% import tax (re-import) is not. 5% VAT is refunded after liquidation of imported goods (Re-import)? – Customs procedures: What are the documents required for re-import? What documents should be prepared before the goods are imported to the port of Ho Chi Minh City, Vietnam?
ANSWER: 1. Pursuant to Point 1.2c, Section III, Part B of the Finance Ministry’s Circular No. 32/2007 / TT-BTC (9/4/2007) guiding the determination of deductible input VAT “The deductible input value added tax is the value added tax on goods and services used for the production of and trading in goods and services subject to value added tax.” Pursuant to the above guidance , the goods sold are subject to value added tax, the input value added tax shall be deducted, the sold goods are not liable to value added tax shall not be entitled to deduct the value added tax input. Accordingly, the company exporting the goods and being returned by the foreign customer, if the returned goods are allowed to continue to be used for production and trading of goods and services subject to value added tax, the company shall be entitled to To deduct or refund input value-added tax on the returned export goods under the guidance at Point l, Section I, Part D of the Ministry of Finance’s Circular No. 32/2007 / TT-BTC of April 9, 2007. Finance. The company shall not be entitled to refund of input value added tax on export goods returned for goods exported under the guidance at Point 1b, Section I, Part D of Circular No. 32/2007 / TT-BTC of September 9. / 4/2007. 2. Pursuant to Points 7.1 and 7.2, Section I, Part E of the Finance Ministry’s Circular No. 113/2005 / TT-BTC of December 15, 2005, guiding the implementation of import tax and export tax. Goods which have been exported but have to be re-imported into Vietnam shall be considered for refund of paid export tax and non-payment of import tax. Conditions for being considered for refund of paid export tax and non-payment of import tax: – Goods are actually re-imported into Vietnam within 365 days after the actual date of exportation; – Goods have not gone through production, processing, repair or use in foreign countries; – Goods imported back to Vietnam must go through customs procedures at places where the goods have been cleared for export. A dossier of request for consideration of export tax refund, which has been submitted and not subject to import tax, comprises: – A written request for consideration of refund of export tax and non-payment of import tax, clearly stating the reason for re-importing into Vietnam and assure the goods have not gone through the process of production, processing, repair or use in foreign countries; – Notice of foreign customers or agreements with foreign customers on the return of goods, clearly stating the reason, quantity and type of goods to be returned; – The customs declaration of exported goods which has gone through the customs procedures and the set of documents of the export goods lot; – Vouchers on payment of export tax; – The return of the returned goods, clearly stating the quantity of the goods previously exported according to the set of export dossiers and the specific inspection result of the customs office, certifying that the goods have been imported Returns to Vietnam are goods previously exported by the enterprise. In cases where the export goods have previously been applied the form of exemption from actual inspection, they must be based on the conclusions of the competent State bodies or assessment organizations according to the provisions of the Customs Law. The customs office shall compare the results of the inspection of the actually imported goods with the dossier of the export goods lot so as to certify that the returned goods are exactly the goods lots already exported; – Vouchers on payment of exported or imported goods (except for cases of non-payment); – The contract of entrusted export or import (if the goods are exported or imported under consignment).