I. VAT and Customs
In many cases, the principal in the contract manufacturing
relationship owns some or all of the raw materials, work-in-process
and finished goods throughout the manufacturing process. The
principal and many of the suppliers are typically outside of the
manufacturing jurisdiction.
1. What Are The VAT, Customs And Related Costs (e.g. Broker
Fees) That Arise When A Foreign Principal Has Goods Drop-shipped
Into Your Jurisdiction To The Local Contract Manufacturer? In
Particular, Is There Any Non-recoverable VAT? Are There Strategies
For Avoiding Or Reducing This VAT Cost?
Most regulations on the Vietnamese VAT regime are included in
the Law on Value Added Tax No. 13/2008/QH12 of the National
Assembly, as amended by Law No. 31/2013/QH13 and Law No.
71/2014/QH13.
