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Tax alert – February 28, 2022 – The Official Letter 521/TCHQ-TXNK

THE OFFICIAL LETTER 521/TCHQ-TXNK ISSUED BY THE GENERAL DEPARTMENT OF CUSTOMS ON FEBRUARY 18, 2022, GUIDING ON IMPLEMENTATION OF DECREE NO. 15/2022/ND-CP

Aiming to ensure the implementation of Resolution 43/2022/QH15, Decree 15/2022/NĐ-CP, on February 18, 2022, the General Department of Customs issued Official letter 521/TCHQ-TXNK guiding on implementation of the policy of reducing value-added tax (“VAT”) for imported goods.

Accordingly, this document gives instructions for goods and services that are not eligible for VAT reduction as follows:

  • The list of goods and services, which is not eligible for VAT reduction, is provided in Appendix I and Appendix III issued enclosed with Decree No. 15/2022/ND-CP.

  • Imported goods that meet the conditions stated in Section 4 of this Official Letter and imported goods subject to special consumption tax shall be applied VAT at 10%.

In addition, the cases of goods stated in Appendix I and III determined HS code for application of tax rate of 10% include:

Chapter (02 digits), without detailing group (04 digits), subheading (06 digits) or code (08 digits)

All 08-digit item codes are subject to 10% VAT

Chapters (02 digits), with details up to groups (04 digits), without details of subheadings (06 digits) or codes (08 digits)

All 08-digit item codes are subject to 10% VAT

Chapters (02 digits), with details up to subheadings (06 digits), without detailing codes (08 digits), the entire row has 08 digits

All 08-digit item codes are subject to 10% VAT

Chapter (02 digits), with details up to 08-digit HS code

All 08-digit item codes are subject to 10% VAT

Should you have any concerns during the process of implementing the regulations, please contact us.

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