“Buying domestic goods — what does import tax have to do with it?” — this very thinking gets companies reassessed for import-stage VAT when selling to export-processing enterprises.
What is on-the-spot import/export?
On-the-spot import/export covers goods traded between domestic companies and export-processing / non-tariff-zone enterprises, or delivered per foreign traders’ instructions in Vietnam — goods never cross a border yet still require on-the-spot customs procedures. For tax purposes these count as exports/imports: the seller files on-the-spot export declarations (earning 0% VAT if conditions are met); the buyer files on-the-spot import declarations.
Who pays import-stage VAT? Is it creditable?
The on-the-spot importer (the buyer) must declare and pay import-stage VAT — computed on the taxable value like ordinary imports. The classic error: assuming “domestic purchase means no import tax” and skipping the declaration — then facing full reassessment plus fines at inspection. Paid import-stage VAT is creditable as input VAT with proper invoices, documents and bank payment — so overall tax cost does not rise, but correct declaration is the gateway to the credit.
Common inspection findings
- No on-the-spot import declaration opened (“hand delivery” to the EPE).
- Seller failing 0%-rate conditions (missing declarations, payment proof) — reassessed on the seller too.
- Wrong taxable value or HS code on the on-the-spot declaration.
- Import-stage VAT paid but never claimed — credit right lost.
Frequently Asked Questions
Must sales to export-processing enterprises open declarations?
Yes. Customs procedures (on-the-spot export declarations) are required for export treatment and the 0% VAT rate. Delivery without declarations counts as domestic sale (standard rate).
Do EPEs pay import-stage VAT on domestic purchases?
EPEs in non-tariff zones enjoy import-like tax policies (exemptions/reductions per zone rules) on on-the-spot imports; but full customs procedures remain mandatory.
Forgot to claim the on-the-spot import VAT credit?
Supplementary credit claims are allowed within the prescribed time limit. Beyond it, the credit right is lost — the paid tax becomes company cost.
This article has been quality-reviewed by the FLAW AI Legal Council