VCN- Enterprises which contribute capital to establish are not required to declare and pay VAT in accordance with Point a, Clause 7 of Circular 219/2013 / TT-BTC.
|Customs operations at Cai Lan port, Quang Ninh province. Photo: Thu Trang.|
That is a response of the General Department of Vietnam Customs for the proposal of Nghi Phong Joint-Venture Company Limited to import machinery and equipment to Vietnam to contribute capital without paying VAT on import.
According to analysis of the General Department of Vietnam Customs, Article 2 of Circular 219/2013 / TT-BTC guides the implementation of the Law on Value Added Tax as follows: The taxable objects are goods and services used for production, business and consumption in Vietnam (including goods and services purchased from organizations and individuals overseas), excluding those not subject to VAT as provided in Article 4 of this Circular.
In addition, Article 3 of Circular 219/2013 / TT-BTC also stipulates: “VAT payers are organizations and individuals producing and trading goods and services subject to VAT in Vietnam, without discriminating types of business, form, and organization of business (hereinafter referred to as business establishments) and organizations and individuals importing goods or purchasing services from abroad which are subject to VAT (hereinafter referred to as importers), including … “.
Accordingly, under Article 2 and Article 3 of Circular No. 219/2013 / TT-BTC, when importing goods into Vietnam, enterprises must pay VAT on import, excluding those not subject to VAT guided in Article 4 of this Circular. Then, enterprises which contribute capital such as fixed assets to establish are not required to declare and pay VAT under Point a, Clause 7, Article 5 of Circular No. 219/2013 / TT-BTC.
By Thu Trang/ Hoang Anh