Decree No. 167/2016/ND-CP dated December 27, 2016 of the Government on duty free business

Goods temporarily imported for sale at duty free shops are exempt from import duty and VAT

The Government issued Decree No. 167/2016/ND-CP on December 27, 2016 on duty free business, specified persons on exit or in transit, passengers onboard international flights from Vietnam or persons awaiting exit may purchase duty-free goods without limits in quantity and value but shall take responsibility for procedures and allowances for importing them into countries of entry.

About goods sold at duty free shops, goods sold at duty free shops include goods temporarily imported to Vietnam; Vietnam-made goods; goods for which import procedures have been cleared and which are permitted for circulation in accordance with Vietnamese law.  In which, goods temporarily imported for sale at duty free shops are exempt from import duty and are not liable to excise tax and value-added tax (VAT); Vietnam-made goods sold at duty free shops are entitled to tax policies applicable to temporary exports. For imports sold at duty free shops for which import duty has been paid, the overpaid tax amount shall be handled in accordance with the law on tax administration.

Also in accordance with this Decree, goods sold at duty free shops shall be kept at duty free shops or duty free warehouses of duty free traders. In case goods temporarily imported for sale at duty free shops are sold in the domestic market, the management policy and tax policy for imports shall be applied at the time of opening the new customs declaration for sale in the domestic market unless the policy on management of imports and exports has been fully implemented at the time of registering the first declaration.

Especially, cigarettes, cigars, liquors and beers sold at duty free shops shall be stuck with the “VIETNAM DUTY NOT PAID” stamp issued by the Ministry of Finance; stamps shall be stuck to goods before they are displayed for sale at duty free shops or delivered to goods buyers in case goods are delivered to buyers directly from duty free warehouses.