Official Dispatch 521/TCHQ-TXNK 2022 regarding the implementation of the Decree 15/2022/ND-CP

To: Customs Departments of provinces and centrally-run cities.

On January 28, 2022, the General Department of Customs issued the Official Dispatch No. 370/TCHQ-TXNK on the implementation of the Government's Decree No. 15/2022/ND-CP dated January 28, 2022, on tax exemption and reduction policy under the National Assembly’s Resolution No. 43/2022/QH15 dated January 11, 2022, on fiscal and monetary policies supporting socio-economic recovery and development program.

In order to properly and consistently implement the Resolution No. 43/2022/QH15 and Decree No. 15/2022/ND-CP, the General Department of Customs has the following opinions:

1. The declaration of value-added tax (VAT) for imported goods shall be based on the actually imported goods, compared with goods subject to VAT and the VAT rate as prescribed by the Law on Value-added Tax and its guiding documents.

2. The policy on reduction of VAT for imported goods shall be implemented according to the scope of goods specified in the Resolution No. 43/2022/QH15 and Decree No. 15/2022/ND-CP.

Regarding the VAT declaration for imported goods eligible for VAT reduction, provisions mentioned at Points 1 and 2 hereto must be followed.

3. The list of goods and services ineligible for VAT reduction provided in Appendices I and II of the Decree No. 15/2022/ND-CP includes products belonging to the exclusion scope of the Resolution No. 43/2022/QH15.

4. Imported goods that are on the list of goods and services ineligible for VAT reduction and meet the criteria specified in Column 8 - “Commodity name”, Column 9 - “Contents” of Appendix I and Part A Appendix II, Column 3 - “Commodity” of Part B Appendix III, and imported goods subject to excise tax in Appendix II to the Decree No. 15/2022/ND-CP shall be subject to the VAT rate of 10%.

Imported goods that are not mentioned in the list of goods and services ineligible for VAT (Appendices I, II and III to the Decree No. 15/2020/ND-CP), shall be subject to the VAT rate of 8%.

5. In case goods mentioned in Appendices I and III of which the HS code indicates:

a) Chapter (2 digits), without specifying heading (4 digits), sub-heading (6 digits) or tariff item (8 digits), then all 8-digit items in such chapter shall be eligible for the VAT rate of 10%;

b) Chapter (2 digits), heading (4 digits), without specifying sub-heading (6 digits) or tariff item (8 digits), then all 8-digit items in such heading shall be eligible for the VAT rate of 10%;

c) Chapter (2 digits), sub-heading (6 digits) without specifying tariff item (8 digits), then all 8-digit items in such sub-heading shall be eligible for the VAT rate of 10%;

d) Chapter (2 digits), specifying tariff item (8 digits), then only that 8-digit items shall be eligible for the VAT rate of 10%.

For example:

In case where the line of commodity has “Primary plastic” as the commodity name (column 8), the HS code (column 10) is 39, with a specific HS code in the 4-digit headings, from 39.01 to 39.13, and a 3914.00.00 code, all the 8-digit items in headings from 39.01 to 39.13 and the 3914.00.00 code shall be eligible for the VAT rate of 10%, the remaining 4-digit headings of Chapter 39 shall be eligible for the VAT rate of 8%.

The General Department of Customs hereby informs Customs Departments of provinces and centrally-run cities for implementation./.