Ms. Thu asked, from February 1, 2022 to the end of December 31, 2022, what is the VAT rate applicable to import and export entrustment services?

The Ministry of Finance responded to this issue as follows:

Pursuant to Decision No. 43/2018/QD-TTg dated November 1, 2018 promulgating the system of Vietnamese product industries.

Pursuant to the Government's Decree No. 15/2022/ND-CP dated January 28, 2022 stipulating the tax exemption and reduction policy according to the National Assembly's Resolution No. 43/2022/QH15 on fiscal and monetary policies to support the program of socio-economic recovery and development:

In Article 1, regulations on VAT reduction:

"1. VAT reduction applies to groups of goods and services currently subject to the tax rate of 10%, except for the following groups of goods and services:

a) Telecommunications, financial activities, banking, securities, insurance, real estate trading, metals and prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products. Details are in Appendix I issued together with this Decree.

b) Products, goods and services subject to excise tax. Details are in Appendix II issued together with this Decree.

c) Information technology according to the law on information technology. Details are in Appendix III issued with this Decree.

d) The reduction of VAT for each type of goods and services specified in Clause 1 of this Article is uniformly applied at the stages of import, production, processing, business and trade. For the sold coal mined (including the case of coal mined and then screened and classified according to a closed process to be sold) which is subject to VAT reduction. Coal products listed in Appendix I to this Decree are not eligible for VAT reduction at other stages other than mining.

In case the goods and services mentioned in Appendices I, II and III issued together with this Decree are not subject to VAT or subject to 5% VAT according to the provisions of the Law on VAT, the provisions of the Law on VAT shall be followed provisions of the Law on VAT and not eligible for VAT reduction.

2. VAT reduction

a) Business establishments that calculate VAT by the credit method may apply the VAT rate of 8% for goods and services specified in Clause 1 of this Article.

… 4. Business establishments must make separate invoices for goods and services eligible for VAT reduction. In case a business establishment does not issue a separate invoice for goods and services eligible for VAT reduction, it is not entitled to VAT reduction…”.

Article 3 provides for the effect and organization of implementation:

"1. This Decree takes effect from February 1, 2022.

Article 1 of this Decree shall apply from February 1, 2022 to the end of December 31, 2022…”.

Pursuant to Appendix I, II, III issued together with Decree No. 15/2022/ND-CP of the Government.

Based on the above provisions, in case her company calculates VAT by the credit method, provides import and export entrustment services, is applying the VAT rate of 10% and is not on the list of goods and services specified in Annexes I, II, III issued under Decree No. 15/2022/ND-CP dated January 28, 2022 of the Government, the VAT rate of 8% as prescribed in Clause 2, Article 1 of Decree No. 15/2022/ND-CP from February 1, 2022 to the end of December 31, 2022….”

Please base on the actual situation, study the above-mentioned legal provisions to comply with regulations.

During the implementation process, if you still have problems, please provide specific documents and contact the tax authority directly managing them for answers.