Uni 15-06-2015 - Guidance on tax policy for export processing enterprises

According to official letter No. 1261/CT-TTHT:

• When EPEs perform goods distribution imported in domestic market, they must have business certificate of purchase goods and the related activities directly to goods purchase & sale in Vietnam; and must establish a branch to perform the goods distribution imported by EPEs. EPEs does not directly sell the imported goods in domestic market.
• The Branch is established to distribute import goods in domestic market (the branch) when receiving goods from EPEs performing import goods procedures; import vouchers are import documents as current regulations.
• The branch selling goods in domestic market is normal business activity. VAT is determined under VAT Law and current regulations.
• In case, the branch is not high tax risks, it can issue invoices for use. If the branch registers, implements to calculate VAT under deduction method; using VAT invoices; if the branch registers, implements to calculate VAT under direct method; using normal sale invoices