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


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