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Vietnam: Import duty, VAT on imports for factory construction

Vietnam: Import duty, VAT on imports

The customs authority in Vietnam issued guidance for export and processing enterprises regarding an exemption from import duty and import value added tax (VAT) for factory construction.

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The guidance (Official Letter No. 4927/TCHQ-TXNK) states that when an export and processing enterprise imports goods for factory construction, and then in turn sub-leases (including sub-leasing to a domestic business) a part of the factory, the export and processing enterprise is required to declare and pay import duty and import VAT for the goods imported for us in the factory construction.

At the end of the lease period, if the export and processing enterprise continues to use the factory for its business, the paid import duty and import VAT are not subject to a refund.

Read a September 2020 report [PDF 198 KB] prepared by the KPMG member firm in Vietnam


For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
T: 202-533-3247
E: aahanchian@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

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