Tax breaks for warranty and repair even applying for IOR services!

Tax breaks for warranty and repair

Regulation Basis:

Businesses can benefit from tax exemptions on goods temporarily imported for warranty and repair, as outlined in Clause 9, Article 16 of the Law on Export and Import Tax, and Clause 2, Article 13 of Decree 134/2016/ND-CP.

This is exciting information for companies that import and sell goods or use IOR services or EOR services!

The General Department of Customs has clarified the policy, offering significant cost savings. Here's what you need to know:

• Importing for warranty/repair? You might be exempt from import tax! Under Vietnamese law, businesses can import goods temporarily to fulfill warranty or repair obligations without paying import tax. This applies as long as the goods are re-exported after the service is complete and haven't been fundamentally changed.
  

• Already paid tax by mistake? Get a refund! According to Article 60 of the Law on Tax Administration 2019, your company can get a refund if it accidentally paid import tax on goods that qualify for this exemption.
  

• Clear guidelines for different scenarios. The General Department of Customs has outlined different scenarios for re-exporting repaired goods:
  

• If you're re-exporting the goods back to the original buyer, it's tax-exempt.
  

• If you're exporting the repaired goods to a different country or duty-free zone, you may be eligible for a refund of any export tax paid (if applicable) and won't be charged import tax.

What should you do next if you are using IOR or EOR services?

• Keep good records! The Customs Department will need to verify your import and re-export activities.
  

• Contact us! Navigating customs regulations can be complex. As a leading IOR service provider and Customs consultant, we can help you:
  

• Determine if your goods qualify for the tax exemption on warranty and repair imports.
  

• Ensure you follow the proper procedures to claim the exemption and avoid delays or penalties.
  

• Streamline your entire import and re-export process for warranty and repair services.
  

By understanding these tax breaks and working with a trusted partner, businesses can save money and streamline their warranty and repair processes. Remember, it's always best to consult a professional for the latest information and personalized advice.