Công văn 3755/TCT-CS

To: Tax Departments of provinces and centrally run cities

On April 20, 2007, the Ministry of Finance issued Official Letter No. 5361/BTC-TCT guiding the settlement of some problems concerning the issuance of value-added tax (VAT) invoices for exported goods. In the course of implementation of this Official Letter, the General Department of Taxation has received official letters of enterprises and a number of localities reporting difficulties and problems and requesting specific guidance on some contents of the Official Letter. The General Department of Taxation specifically guides Points 2 and 3 of Official Letter No. 5361/BTC-TCT as follows:

1. Issuance of VAT invoices for exported goods

Under 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 Value-Added Tax Law and the Law Amending and Supplementing a Number of Articles of the Value-Added Tax Law; Point 5.3, Section IV, Part B of the Finance Ministry's Circular No. 32/2007/TT-BTC of April 9, 2007, guiding the implementation of the Government's Decrees No. 158/2003/ND-CP of December 10, 2003, No. 148/2004/ND-CP of July 23, 2004, and No. 156/2005/ND-CP of December 15, 2005, detailing the implementation of the Value-Added Tax Law and the Law Amending and Supplementing a Number of Articles of the Value-Added Tax Law, after completing procedures for exported goods, export establishments shall issue VAT invoices for those goods.

Accordingly, business establishments exporting goods shall issue VAT invoices for exported goods after completing customs procedures for those goods.

2. Conditions and procedures for VAT credit and refund for exported goods

Under Point 1.2.d, Section III, Part B of the Finance Ministry's Circular No. 120/2003/TT-BTC of December 12, 2003; Point 1.2.d, Section III, Part B of the Finance Ministry's Circular No. 32/2007/TT-BTC of April 9, 2007, mentioned above, exported goods entitled to input VAT credit or refund must satisfy the following conditions and procedures:

- A contract on sale or processing of goods for foreign organizations or individuals;

- An export goods customs declaration certified by a customs office that the goods have been exported.

- Via-bank payment vouchers;

- VAT invoices for sale of goods or export of goods processed for foreign parties.

Under the above guidance, when business establishments export goods which fully meet the three conditions on foreign contract, customs declaration and via-bank payment voucher, but do not issue VAT invoices for exported goods according to Point 5.3, Section IV, Part B of Circular No. 120/2003/TT-BTC of December 12, 2003; Point 5.3, Section IV, Part B of Circular No. 32/2007/TT-BTC of April 9, 2007, and fully account turnover of and expenses for those goods in accounting books, they may still make declaration for input VAT credit or refund for goods actually exported but are administratively sanctioned for violating regulations on use of invoices and financial documents in accordance with the Ministry of Finance’s Circular No. 120/2002/TT-BTC of December 30, 2002.

 The General Department of Taxation informs provincial/municipal Tax Departments thereof for compliance and guidance to local enterprises. In the course of implementation, provincial/municipal Tax Departments should promptly report arising problems to the General Department of Taxation for guidance.