Question: Sales to overseas/export, is it VAT is ‘nil’ ?
Answer:
Yes, goods and services exported from Vietnam are subject to a 0% VAT rate (often referred to as "VAT nil")
Exported goods include:
- The goods exported to other countries, including those under entrustment contracts;
- The goods sold to free trade zones as prescribed by the Prime Minister; the goods sold to duty-free shops;
- The goods that are delivered to the recipients outside Vietnam;
- Parts and supplies for repairing, maintaining vehicles, machinery, and equipment of foreign entities, and those that are used outside Vietnam;
- Cases of deemed exportation:
+ Forwarded processed goods under trade laws on international goods trade and export processing.
+ Exported goods delivered to a domestic recipient appointed by the importer (hereinafter referred to as domestic exports).
+ The goods exported to be sold at overseas fairs or exhibitions.
Legal Basis: Article 9 of Circular 219/2013/TT-BTC
