Is the entrusted party for importation required to declare the invoice for returning entrusted imported goods on the VAT return?

Based on Clause 3a, Article 13 of Decree No. 123/2020/ND-CP, which regulates the use of e-invoices, delivery notes cum internal transport documents, and delivery notes for goods sent to agents in specific cases as required for management purposes, as follows:

“a) In cases of entrusted importation of goods, if the business entity entrusted with the importation has already paid value-added tax (VAT) at the importation stage, an e-invoice must be issued when returning the goods to the entrusting business entity. If VAT has not been paid at the importation stage, when returning the entrusted imported goods, the entrusted party shall prepare a delivery note cum internal transport document as prescribed, serving as documentation for the circulation of goods in the market.”

Accordingly:

• If the business entity entrusted with the importation has already paid VAT at the importation stage, it must issue an e-invoice when returning the goods to the entrusting business entity and carry out additional declarations for the returned goods invoice as prescribed in Clause 4, Article 7 of Decree No. 126/2020/ND-CP, which regulates additional tax declaration procedures.
• If the business entity has not paid VAT at the importation stage, the entrusted party must prepare a delivery note cum internal transport document as prescribed when returning the entrusted imported goods, to serve as documentation for the circulation of goods in the market.

Applicable legal documents:

• Decree No. 123/2020/ND-CP
• Decree No. 126/2020/ND-CP

Source: Q&A on Tax - General Department of Taxation.