Vietnamese Law has specific regulations governing export activities and the sending of goods to foreign warehouses.
1. Regulations on Invoices and Export Documentation for Goods
- Regarding the regulations on invoices, businesses must understand the timing of invoicing for exported goods and services. As stipulated in Article 3 of Decree No. 123/2020/ND-CP, an invoice is an accounting document prepared by the selling unit to record information about the goods.
- Legal invoices and documentation must ensure correctness and completeness in both form and content. The form and content of invoices are also specified in this Decree 123.
- Information such as the name, address, and tax identification number of the seller and buyer is among the required details on the invoice.
2. Regulations on Customs Declarations
- Customs declarations must go through customs procedures to be cleared. Therefore, declarants must fulfill their tax obligations to complete these procedures.
- A company’s new batch of goods is considered complete after being identified for export. Subsequently, the batch becomes eligible to use a customs declaration for further procedures.
- The revenue recognition moment is after completing procedures for the export customs declaration and confirming the actual export.
- For businesses registering customs declarations to send goods to foreign warehouses, in this case, the transfer of ownership and usage rights to the partner has not yet occurred. Therefore, the buyer is not determined, and the business cannot issue a VAT invoice with complete information.
3. Tax Policies for Exported Goods Sent to Foreign Warehouses
- According to the General Department of Customs, once the goods have been exported and sent to foreign warehouses… Businesses must ensure complete and accurate customs declarations.
- At the same time, they should periodically report on goods sent to foreign warehouses to the tax authorities. The tax authorities will then carry out the management of the goods. The timing of issuing commercial invoices to customers is when revenue is recorded. Therefore, this depends on the business’s declaration to determine the transfer of ownership and usage rights for completing a valid VAT invoice.
(Excerpt from Official Letter No. 4916/TCHQ-GSQL dated 18 November 2022)
About our company:
HMLF is a Law Firm licensed to provide legal services to Enterprises. With over 70 years of experience in:
– Finance, Accounting, Tax.
– Industry: Manufacturing, Service, Aviation, Transport, Technology, Finance.
– Helping Customers control transactions from internal legal to international trade. Become the best legal defender for Businesses.
– Try to offer optimal solutions to bring customers satisfaction.
HMLF is always available to offer assistance in understanding the procedures with authorities.
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
