The application of  value-added tax (VAT) to imported goods no longer complies with the VAT Tariff  promulgated together with Circular No.83/2014 / TT-BTC but complies with the provisions of current documents on value-added tax.

When referring to circular No.83/2014/TT-BTC guiding the application of value-added tax according to Vietnam’s list of imports, Integration Point Corporation – Malaysia found that some HS codes were missing in the HS codes list.

Through the system of receiving and responding to recommendations of enterprises, the Company asks “ Are there any new documents prescribing the implementation of VAT under the Nomenclature of Import and Export Goods (HS code according to AHTN 2017)?

 In response to this issue, The Ministry of Finance gives following opinion:

Clause 1, Article 3 of Circular No 83/2014/TT-BTC, dated 26th June 2014 issued by the Ministry of Finance on guiding the application of value-added tax according to Vietnam’s list of imports: The VAT tariff detailed according to 8-digit headings and goods descriptions according to Vietnam’s list of imports promulgated together with the Ministry of Finance’s Circular No. 156/2011/TT-BTC of November 14, 2011.

On June 27th, 2017, the Ministry of Finance promulgated circular No. 65/2017/TT-BTC promulgating Vietnam's nomenclature of imports and exports, replacing circular No. 156/2011/TT-BTC. Accordingly, Vietnam’s nomenclature of imports and exports has been changed because some items were dismissed or amended, which led to the change in HS codes of the nomenclature.

Therefore, the application of value-added tax (VAT) to imported goods no longer complies with the VAT Tariff promulgated together with Circular No.83/2014 / TT-BTC but complies with the provisions of current documents on value-added tax, namely as follows:

- Circular No. 219/2013/TT-BTC dated December 31st, 2013 of the Ministry of Finance guiding the implementation of the Law on Value-Added Tax and the Decree No. 209/2013/NĐ-CP dated December 18, 2013 of the Government on detailing and guiding implementation of several articles of Law on Value-Added Tax.

- Circular No.26/2015/TT-BTC dated February 27th, 2015 of the Ministry of Finance on guidelines for value-added tax and tax administration in the Government's Decree No. 12/2015/NĐ-CP  and amendments to circular No. 39/2014/TT-BTC of the Ministry of Finance on invoices for goods sale and service provision

- Circular No.130/2016/TT-BTC  dated August 12, 2016, on Guidelines For The Government Degree No.100/2016/ND-CP On The Implementation Of The Law On Amendments To Certain Articles Of The Law On Value Added Tax, The Law On Special Excise Tax And The Law On Tax Administration And To Certain Articles Of Tax-Related Circulars.

- Circular No. 25/2018/TT-BTC on guidelines for the Government’s Decree No. 146/2017/ND-CP dated december 15, 2017 and amendments to some articles of the circular No.78/2014/TT-BTC dated June 18, 2004 of the Ministry of Finance and Circular No. 111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance

We recommend that Integration Point - Malaysia refer to the VAT provisions in the above documents on value-add tax to apply the right tax rates based on the Company's specific import items.