Circular No. 8282/TC/TCT on payment documents for exported goods and services

LETTER

OF THE MINISTRY OF FINANCE NO. 8282 TC/TCT AUGUST 12, 2003
REGARDING PAYMENT DOCUMENTS FOR EXPORT GOODS AND SERVICES
EXPORT SERVICES

Dear: - Ministries, ministerial-level agencies, government agencies

- PEOPLE'S COMMITTEE Guidelines for the functions, tasks, authorities, and organizational structure of Provincial and Central City Standard Measurement Quality Control Agencies

Pursuant to Clause 1, Article 7 of Decree No. 79/2000/NĐ-CP dated December 29, 2000 of the Government detailing the implementation of the Law on Value Added Tax and Decree No. 76/2002/NĐ-CP dated September 13, 2002 of the Government amending and supplementing certain provisions of Decree No. 79/2000/NĐ-CP dated December 29, 2000 mentioned above; Pursuant to Point 1.1, Section III of Circular No. 82/2002/TT-BTC dated September 18, 2002 of the Ministry of Finance guiding amendments and supplements to certain contents of Circular No. 122/2000/TT-BTC dated December 29, 2000 guiding value added tax; Circular No. 1186/NHNN-QLNH dated November 1, 2002 of the State Bank; After reaching consensus with the State Bank, the Ministry of Finance provides specific guidance on payment documents for export goods and services subject to a zero percent tax rate as follows: VAT AS FOLLOWS:

1. The execution of payment for selling export goods and services through banks between domestic businesses and foreign organizations and individuals involves transferring funds from the bank of the importer to the bank of the exporter to pay for the goods and services according to appropriate payment methods stipulated in the contract and banking regulations. Payment documents for export goods and services are the Notice of Credit issued by the exporter's bank.

In cases where payments are made through foreign accounts opened at banks in Vietnam, the payment document for export goods and services is the Notice of Credit issued by the exporter's bank (for export cases), clearly stating the account number and name of the foreign account holder.

2. In cases where goods are sold to foreign traders but delivered to other domestic businesses at the request of the foreign trader for production or processing of export goods, the payment process shall be carried out in accordance with Circular No. 90/2002/TT-BTC dated October 10, 2002 of the Ministry Ministry of Finance.

3. In cases where goods (including processed export goods) and services are exported to foreign organizations and individuals, but the settlement between Vietnamese business establishments and foreign counterparts is conducted through offsetting the value of exported goods and services with the value of goods and services purchased from the foreign side, then: the payment documents shall be implemented in accordance with Circular No. 5957 TC/TCT dated June 9, 2003 issued by the Ministry. Ministry of Finance.

3. In cases where goods (including processed export goods) and services are exported to foreign organizations and individuals, but the payment between domestic businesses and foreign parties is settled by offsetting the value of exported goods and services against the value of imported goods and services from the foreign side, then: the payment document shall be implemented in accordance with Circular No. 5957 TC/TCT dated June 9, 2003 of the Ministry

4. In cases where export goods and services are paid for by offsetting against foreign debt owed by the business, the payment documents include:

- Transfer documents into Vietnam through banks and loan contracts (for financial loans with terms under one year).

- Transfer documents into Vietnam through banks and the State Bank of Vietnam's confirmation of loan registration (for loans over one year).

- Export contracts containing clauses specifying that export goods and services will be paid for by offsetting against foreign debt.

- Confirmation from the foreign party regarding the offsetting of the debt.

5. In cases where export goods and services are used to repay government loans, there must be confirmation from the Foreign Trade Bank that the export shipment has been accepted by the foreign party for debt offset or confirmation that the set of documents has been sent to the foreign party for debt offset.

6. In cases of payment for export goods and services with export processing enterprises: Payment for export goods between export processing enterprises and enterprises outside the processing zone shall be made in freely convertible foreign currency or in Vietnamese dong through bank accounts. Payment documents for export goods and services are the Notice of Credit issued by the exporter's bank. when the foreign party makes payment for goods and services to the business establishment in Vietnam (the Exporting Establishment), the settlement by proxy must be stipulated in the export contract (or in the Contract Appendix if applicable); The payment document for exported goods and services in this case is the Bank Advice from the exporting bank.

7. In cases where the buyer or seller authorizes a third party organization or individual abroad to make payment for export goods and services to domestic businesses (exporters), the authorized payment must be specified in the export contract (or in the contract appendix if applicable); Payment documents for export goods and services in this case are the Notice of Credit issued by the exporter's bank.

8. The provisions on payment documents stated above also apply to the examination of refund of import tax (or tax offset) for imported raw materials used to produce export products. To facilitate businesses in collecting payment documents as required, customs authorities will not enforce coercive measures for exporting and importing goods of businesses still owing import taxes on imported raw materials for producing exported goods before the issuance of this circular. The non-enforcement period ends on October 31, 2003. During this period, businesses must submit complete documentation for tax refunds (or tax offsets) to customs authorities; Customs

authorities must inform businesses and process the tax refunds (or offsets) within the specified timeframe. For imported raw materials intended for producing export goods but not actually exported, taxes must be paid and penalties applied according to current laws.

Subsequent shipments of imported raw materials for producing export goods, if meeting the conditions stipulated in Point 2, Section III, Part C of Circular No. 172/1998/TT-BTC dated December 22, 1998 of the Ministry of Finance (excluding tax debts due to the collection of payment documents mentioned above), will still be subject to a nine-month tax payment deadline (rounded to 275 days) from the date the taxpayer receives the formal tax notification from the customs authority. During implementation, if any issues arise, organizations and individuals are advised to report to the Ministry of Finance for coordination with