Local customs departments must inspect imported goods for office building

	Handling of tax on goods that cannot be produced domestically
	HCM City recommends many contents for effective implementation of scheme on specialised inspection

Customs officers in Hai Phong Customs Department at work.

Recently, the GDVC has received complaints from firms on tax policies for goods imported by contractors to build factories, offices, and install equipment according to the bidding results for enterprises in non-tariff zones.

The GDVC has instructed municipal and provincial customs departments to comply with Clause 1, Article 2 of the Law on Import and Export Taxes 107/2016 and Clause 1, Article 2 of Decree Decree 134/2016/ND-CP of the Government.

Customs officers in Hai Phong Customs Department at work.

If the domestic sub-contractor imports goods from abroad into Vietnam to implement a bidding package under a contract signed with the principal contractor to build factories, offices, and install equipment per bidding results for enterprises in non-tariff zones, it must declare and pay import tax.

The GDVC cited Article 2 of the Law on VAT 13/2008 as saying VAT is a tax calculated on the added value of goods and services arising in production, circulation and consumption.

Article 3 of the Law also provides goods and services used for production, business and consumption in Vietnam are subject to VAT, except those specified in Article 5 of this Law. The law also stipulates VAT payers are organisations and individuals that produce and trade in VAT eligible goods and services, and organisations and individuals that import VAT eligible goods.

If a domestic contractor imports goods from abroad into Vietnam, they must declare and pay VAT according to regulations.

If the contractor has not yet declared and paid import duty, Customs will collect the tax for import goods and handle it.