In July 2024, Ms. Lan's company requested a VAT refund but only received nearly half of the refund, the rest was not refunded due to on-site import-export procedures.

According to the customs authority's instructions, from July 20, 2023 onwards, in this case, the company is no longer allowed to carry out on-site import-export procedures as before but must carry out customs procedures through a bonded warehouse.

The company has complied with the regulations by notifying foreign customers to rent a bonded warehouse and carry out customs procedures through the bonded warehouse.

However, on February 17, 2025, the Ministry of Finance issued an official dispatch to the Provincial People's Committee on VAT policy, which stated:

"In the case where a domestic enterprise sells goods to a foreign trader with a presence in Vietnam and is assigned to deliver goods to a third party, a Vietnamese enterprise, through a bonded warehouse that does not meet the conditions for exported goods sold to organizations and individuals abroad and consumed outside Vietnam, goods sold to organizations and individuals in a duty-free zone and consumed in a duty-free zone are not subject to the case of exported goods subject to a 0% tax rate as prescribed in Clause 1, Article 9 of Circular No. 219/2013/TT-BTC mentioned above".

According to Ms. Lan's understanding, the customs authority has instructed the company to carry out export procedures through a bonded warehouse, but now the tax authority does not accept that transaction as export revenue and must handle it as a domestic enterprise, subject to 8% VAT.

This causes difficulties for the company. If handled according to the above document, Ms. Lan's company will continue to not be refunded a large amount of tax. The company wants to issue VAT invoices to overseas customers in USD with a tax rate of 8% according to domestic revenue but is afraid that it is not in accordance with the State Bank's foreign currency collection regulations.

Currently, the company does not know how to solve the problem to be able to sell goods to customers because it is not possible to open an export declaration and issue VAT invoices in USD with a tax rate of 8% is also not possible.

Ms. Lan requested the competent authority to consider and provide guidance.

Regarding this issue, Dong Nai Provincial Tax has the following opinion:

Pursuant to Clause 4, Article 3 of the Law on Foreign Trade Management, which stipulates separate customs areas and Clause 5, Article 3 of the Law on Foreign Trade Management, which stipulates foreign traders;

Pursuant to Clause 1 and Clause 2, Article 28 of the Commercial Law No. 36/2005/QH11 regulating the export and import of goods;

Pursuant to Clause 1, Article 35 of Decree No. 08/2015/ND-CP dated January 21, 2015 of the Government detailing and providing measures for implementing the Customs Law;

Pursuant to Article 86 of Circular No. 38/2015/TT-BTC dated March 25, 2015 of the Minister of Finance regulating customs procedures; customs inspection and supervision, export tax, import tax and tax management for exported and imported goods, providing guidance on on-site export and import goods;

Pursuant to Point a, Clause 1, Article 6 of Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government regulating the tax rate of 0%;

Pursuant to Clause 1, Clause 2, Article 9 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Minister of Finance guiding on the 0% tax rate;

Pursuant to Clause 2, Article 17 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Minister of Finance guiding on the conditions for deduction and refund of input VAT for some cases of goods considered as exported.

Pursuant to Official Dispatch No. 1872/BTC-TCT dated February 17, 2025 of the Ministry of Finance on VAT policy;

Based on the above instructions and Ms. Ngo Lan's question, the tax authority answers in principle as follows:

In the case where a company sells goods to a foreign trader with a presence in Vietnam and is assigned to deliver goods to a third party, a Vietnamese enterprise, through a bonded warehouse that does not meet the conditions for exported goods sold to organizations and individuals abroad and consumed outside Vietnam, goods sold to organizations and individuals in non-tariff zones and consumed in non-tariff zones, it is not a case of exported goods subject to a 0% tax rate as prescribed in Clause 1, Article 9 of Circular No. 219/2013/TT-BTC of the Ministry of Finance.