Understanding the VAT Policy Update for Bonded Warehouses in Vietnam
>> Official Letter No. 1872/BTC-TCT
On February 17, 2025, the Ministry of Finance issued Official Letter No. 1872/BTC-TCT in response to the People's Committee of Dong Nai Province and the Tax Department of Dong Nai Province regarding the VAT policy for goods transferred from the domestic market into bonded warehouses. This clarification has significant implications for businesses engaged in import-export activities in Vietnam, particularly those utilizing bonded warehouse services.
As a leading logistics provider, VICO Logistics ensures our customers stay informed about regulatory changes and optimize their operations. Below is a summary of the new VAT policy and how businesses can adapt to these changes:
“In cases where domestic enterprises sell goods to foreign traders with a presence in Vietnam and are instructed to deliver goods to a third party, a Vietnamese enterprise, through bonded warehouses, this does not meet the conditions for exported goods sold to organizations and individuals abroad for consumption outside Vietnam, or goods sold to organizations and individuals in non-tariff zones and consumed within non-tariff zones.
Therefore, such goods do not fall under the category of exported goods eligible for the 0% tax rate under Clause 1, Article 9 of Circular No. 219/2013/TT-BTC mentioned above.”
Key Highlights of the New VAT Policy No. 1872/BTC-TCT
The Ministry of Finance's directive addresses VAT application for goods transferred to bonded warehouses from domestic sources. Key points include:
1. No VAT Refund for Goods Entering Vietnam Bonded Warehouses
Domestic companies selling goods to bonded warehouses without an official export contract are ineligible for VAT refunds.
The 0% VAT rate does not apply unless goods meet export conditions, including proof of international sale and transport outside Vietnam.
2. Clarification on Export Status
Goods sold to bonded warehouses but remaining in Vietnam for further domestic transactions do not qualify as exports under Circular 219/2013/TT-BTC.
Only goods transported outside of Vietnam or into designated customs-controlled areas are considered exported.
3. Distinction Between Tax and Customs Regulations
The Tax Department mandates that for goods to be VAT-exempt, they must leave Vietnam.
The Customs Department considers the placement of goods in bonded warehouses as an export transaction, allowing import duty and VAT refunds on raw materials.
Businesses must align their transactions with both customs and tax authorities to avoid unexpected liabilities.
How Businesses Should Adapt to Official Letter No. 1872/BTC-TCT
To remain compliant and optimize tax efficiency, businesses should take the following actions:
1. Review Export Contracts and Documentation
Ensure all commercial contracts explicitly state export terms.
Maintain proper export documentation to qualify for tax exemptions.
2. Understand VAT Obligations for Vietnam Bonded Warehouses
If storing goods in a bonded warehouse for future domestic sale, VAT must be accounted for.
If utilizing bonded warehouses for export, ensure transactions meet customs definitions of an export transaction.
3. Optimize Vietnam Bonded Warehouse Usage
Foreign traders with a presence in Vietnam must use bonded warehouses for local transactions.
Manufacturers exporting under buyer requirements can benefit from duty and VAT refunds when using bonded warehouses strategically.
4. Work with Expert Logistics Providers
A trusted logistics partner like VICO Logistics can guide businesses on compliance, tax optimization, and supply chain efficiency.
Our expertise in bonded warehouse operations ensures smooth handling of goods while meeting both tax and customs regulations.
Impact on Supply Chains and Bonded Warehouse Operations
With this new policy, businesses may reconsider their use of bonded warehouses. While VAT refunds are no longer available for certain transactions, bonded warehouses still offer strategic advantages:
✅ Tax Deferral: Companies can defer import duties and taxes until goods are re-exported or released for domestic use.
✅ Regulatory Compliance: Properly managed bonded warehouses align with customs and tax policies, preventing potential penalties.
✅ Supply Chain Efficiency: Bonded warehouses allow businesses to store goods duty-free until demand arises, optimizing cash flow.
However, companies relying on bonded warehouses primarily for VAT refunds may need to reassess their strategies to avoid unexpected tax liabilities.
VICO Logistics: Comprehensive Bonded Warehouse & Trucking Services in Vietnam
As a leading logistics provider in Vietnam, VICO Logistics offers seamless bonded warehouse and trucking solutions to help businesses navigate complex VAT policies and optimize their supply chains. Our services include:
Bonded Warehouse Services in Key Locations
We operate strategic bonded warehouses in:
Hai Phong (Northern Vietnam – Ideal for import-export activities through major seaports)
Da Nang (Central Vietnam – A hub for mid-region logistics and transit shipments)
Ho Chi Minh City (Southern Vietnam – Serving major industries and global trade partners)
Dong Nai & Binh Duong (Key industrial zones for manufacturing and distribution)
Thu Duc (Growing logistics hub for Southern Vietnam)
Our bonded warehouses offer:
Secure storage solutions for imported/exported goods
Customs clearance assistance to ensure smooth compliance
Optimized inventory management for streamlined operations
Trucking Services: Efficient Transport from Cat Lai Port to Bonded Warehouses
We provide dedicated trucking services for goods moving from Cat Lai Port to bonded warehouses, ensuring:
Fast, reliable deliveries with minimal handling time
End-to-end logistics solutions covering customs clearance and VAT compliance
Safe and secure transport with real-time tracking
How VICO Logistics Helps Businesses Adapt to the New VAT Policy
Expert Consultation – Our team stays updated on Vietnam’s tax regulations to offer the best guidance for VAT compliance.
Customs & Documentation Support – We assist in preparing export contracts, invoices, and customs declarations to ensure goods meet 0% VAT eligibility requirements.
Integrated Warehousing & Transport – We provide a one-stop logistics solution, reducing costs and ensuring compliance with bonded warehouse operations.
If your business needs expert logistics solutions to navigate Vietnam’s evolving VAT regulations like No. 1872/BTC-TCT, contact VICO Logistics today. Let us help you optimize your supply chain while ensuring compliance with the latest policies.
Conclusion
The updated VAT policy No. 1872/BTC-TCT significantly impacts businesses utilizing bonded warehouses in Vietnam. Companies must carefully review their tax obligations and adjust their supply chain strategies accordingly. Partnering with an experienced logistics provider like VICO Logistics ensures smooth operations, compliance, and tax efficiency.
Stay ahead of regulatory changes with VICO Logistics—your trusted partner in global trade.
Related Articles from VICO Logistics:
----
VICO Logistics – Textile Logistics Provider
Premium member of Eurocham, JCtrans, VICOFA, VITAS... associations
Owned offices: Hong Kong (headquarters), China (Shenzhen, Shanghai), Vietnam (Ho Chi Minh, Da Nang, Hai Phong).
Follow us for more valuable information
Book now: https://vico.com.hk/#quotation
Contact us:
Email mkt4_hcm@vico.com.hk (For business development)
Hotline: Zalo/Whatsapp: (+84)901877108
WeChat: miauyen157
