Công văn 1707/TCT-PCCS

In response to Official Letter No. 01/CVT/DV/2006 dated April 3, 2006 of Dat Viet Farm Produce Joint-Stock Company, inquiring about invoices in case of entrusted export, the General Department of Taxation gives the following opinions:

According to the provisions of Point 5.3, Section IV, Part B of the Finance Ministry's Circular No. 120/2003/TT-BTC of December 12, 2003, guiding the implementation of the Government's Decree No. 158/2003/ND-CP of December 10, 2003, detailing the implementation of the VAT Law and the Law Amending and Supplementing a Number of Articles of the VAT Law: "In case of entrusted export of goods, when delivering goods to the entrusted establishments, the entrusting establishments shall use ex-warehousing-cum-internal transport bills issued by the Finance Ministry (the General Department of Taxation) together with internal transfer orders. Once goods are actually exported with the certification thereof by the customs authorities, basing themselves on the entrusted establishments' documents for comparison and certification of the quantity and value of actually exported goods, the goods export-entrusting establishments shall make value-added invoices for VAT payment and refund declaration. In this case, the export business establishments must keep originals No. 2 of invoices. In cases where the export business establishments have registered with tax authorities for printing and circulating by themselves invoices to be used for export goods and to be issued to foreign customers, they shall use invoices printed by themselves for tax payment and refund declaration"

1. Dong Bac Food Joint-Stock Company, upon delivering goods to Dat Viet Farm Produce Joint-Stock Company (the entrusted unit) for export, should use ex-warehousing-cum-internal transport bills accompanied by internal transfer orders.

2. After such goods are actually exported with customs declarations showing customs authorities' certification of the actual export of goods, Dong Bac Food Joint-Stock Company and Dat Viet Farm Produce Joint-Stock Company should make written minutes on liquidation of the entrustment contract, comparing the quantity and value of actually exported goods. Basing itself on the said comparison documents, Dong Bac Food Joint-Stock Company will issue value-added invoices, write the VAT rate of 0% to Dat Viet Farm Produce Joint-Stock Company. At the same time, Dat Viet Farm Produce Joint-Stock Company will hand over the following dossiers to Dong Bac Food Joint-Stock Company for the latter to carry out procedures for declaration for tax credit or refund according to regulations:

- Foreign trade contracts signed between Dat Viet Farm Produce Joint-Stock Company with foreign customers;

- The export entrustment contract signed between Dat Viet Farm Produce Joint-Stock Company and Dong Bac Food Joint-Stock Company;

- Customs declarations of export goods with customs authorities' certification;

- Via-bank payment vouchers (made according to the guidance at Point d.3, Section II, Part B of the Finance Ministry's Circular No. 120/2003/TT-BTC of December 12, 2003);

- Value-added invoices with the VAT rate of 0% made and handed by Dong Bac Food Joint-Stock Company to Dat Viet Farm Produce Joint-Stock Company.

Above is the General Department of Taxation's answer to Dat Viet Farm Produce Joint-Stock Company's inquiry for the latter's knowledge and compliance.