We would like to provide information on the tax rates and where to pay Value added tax(VAT) payment for imported goods as follow.

*What is the VAT for Imported Goods?

According to Article 8 of the 2008 Value Added Tax Law, there are currently 3 VAT rates: 0%, 5%, and 10%.

Specifically, according to Circular 83/2014/TT-BTC, which guides the implementation of VAT according to the Vietnamese Import Goods List, most imported goods are subject to a 10% VAT rate. A limited number of goods are subject to a 5% VAT rate. Certain goods have a 0% VAT rate but are not classified as imported goods.

*Where to pay VAT on Imported Goods?

Based on Article 20 of Circular 219/2013/TT-BTC, taxpayers should pay VAT on imported goods as follows:

– Taxpayers declare and pay VAT at the local tax office where their production or business is located.

– Taxpayers applying the deduction method with a production facility that is dependent on accounting and located in a province or city different from the headquarters must pay VAT in the locality where the production facility and headquarters are situated.

– In cases where an enterprise or cooperative that applies the direct method has a production facility or conducts out-of-province temporary sales activities in a province different from its headquarters, it must declare and pay VAT based on a percentage of revenue for revenue generated outside the province at the location of the production facility or the location where out-of-province sales occur.

Enterprises and cooperatives do not have to pay VAT at a percentage rate on revenue at the head office for revenue arising in out-of-province that have been declared and paid tax.