Procedures for the Sale of Fixed Assets by Export Processing Enterprises
2026/02/19
- Pham Thi Thuy Trang
In the course of business operations, Export Processing Enterprises (hereinafter referred to as “EPEs”) inevitably face situations where fixed assets become unusable due to aging, damage, or obsolescence. As a result, there is a frequent need to dispose of such fixed assets through sale. However, the sale of fixed assets is subject to various regulatory requirements, and must be conducted in compliance with applicable laws and regulations. This article explains the conditions and procedural flow for the sale of fixed assets by EPEs, based on current tax regulations and relevant legal frameworks.
1. Conditions for the Sale of Fixed Assets
Pursuant to Clause 4(c) of Circular No. 04/2007/TT-BTM, EPEs are permitted to sell fixed assets in the following cases:
・When the depreciation period has expired
・When the asset is damaged
・When the enterprise reduces its production scale or changes its business objectives
・When the asset is replaced with new machinery, equipment, or means of transportation
2. Documentation Required for the Sale of Fixed Assets
The following documents are required for the sale of fixed assets:
・Official letter requesting approval for sale (addressed to the tax authority)
・Sale and purchase agreement
・Import declaration (if the fixed asset was imported)
・Depreciation schedule (if applicable)
・Damage assessment report (if applicable)
・Minutes of the fixed asset disposal committee meeting and inventory/revaluation records
・Decision on the sale of fixed assets
In cases where the fixed asset was exempt from import duty, a confirmation letter from the customs authority regarding the sale of duty-exempt assets must also be submitted.
3. Forms of Fixed Asset Sale
3.1. Sale of Fixed Assets to Overseas Buyers
a. Fixed assets that were subject to EPE preferential tax and goods management policies at the time of import
・The enterprise must carry out procedures for change of use and declare taxes without payment. (Clause 2(b), Article 21 of Circular No. 38/2015/TT-BTC and Clause 5, Article 25 of Decree No. 08/2015/NĐ-CP)
・Export declaration must be made under code “B13 – Export of imported goods.” The tax treatment is as follows:
・ Export tax is exempt (Clause 2, Article 12 of Decree No. 134/2016/NĐ-CP)
・ Value-added tax (VAT) is not applicable (Article 4 of Decree No. 181/2025/NĐ-CP)
b. Fixed assets purchased domestically
・Export procedures must be carried out in accordance with standard export regulations
・Applicable taxes (such as export tax) arising from the overseas sale must be declared and paid
3.2. Sale of Fixed Assets to the Domestic Market (Vietnam)
a. Fixed assets that were subject to EPE preferential policies at the time of import
When selling such fixed assets domestically, EPEs may choose between procedures under Article 79 or Article 86 of Circular No. 38/2015/TT-BTC:
＜Option 1: Article 79＞
・The EPE must carry out procedures for change of use of the fixed asset
・The EPE issues an invoice for export processing zone transactions, clearly stating “for organizations and individuals in the export processing zone”
・Customs declaration is made under code “A42 – Conversion to domestic consumption”
・VAT must be calculated using the direct method and declared/paid within 10 days from the date the tax obligation arises
＜Option 2: Article 86＞
・No change-of-use procedure is required
・The EPE issues an invoice indicating “for organizations and individuals in the export processing zone”
・Export declaration is made under code “B13 – Export of imported goods” (based on Official Letter No. 1478/TCHQ-GSQL)
・The domestic purchaser must carry out import procedures under code “A12 – Import for business/production purposes” and declare/pay import duty, VAT, and other applicable taxes based on the actual transaction value
b. Fixed assets purchased domestically
According to Official Letter No. 4067/TCHQ-TXNK dated September 29, 2022, issued by the General Department of Customs, goods and equipment purchased domestically (i.e., not subject to import declaration), or imported goods that were not entitled to EPE preferential policies and have already fulfilled all import tax and regulatory obligations, are not subject to customs procedures when sold domestically by an EPE.
Accordingly, when an EPE sells domestically purchased fixed assets within Vietnam:
・No customs procedures are required
・VAT must be declared and paid using the direct method within 10 days from the date the tax obligation arises
4. Determination of Taxable Value
According to Clause 9, Article 1 of Circular No. 60/2019/TT-BTC, when imported goods used in Vietnam are sold after a change of use, the customs value shall be the actual selling price. However, if the customs authority has reasonable grounds to believe that the declared value does not reflect the actual transaction, it may reassess the customs value based on the actual condition of the goods using appropriate valuation methods.
Conclusion
When selling fixed assets, EPEs must ensure compliance with legal regulations concerning change of use and tax declarations. It is essential to accurately distinguish the origin of the assets (imported or domestically procured) and apply the appropriate customs declaration category, import duty rates, VAT treatment, and declaration procedures accordingly. Proper execution of these procedures is crucial not only for mitigating tax risks but also for ensuring transparency in fixed asset management and customs documentation. Where necessary, it is advisable to consult directly with the competent customs authority and obtain formal guidance.
References
・Law on Value-Added Tax No. 48/2024/QH15 (promulgated November 26, 2024)
・Decree No. 08/2015/NĐ-CP (January 21, 2015)
・Decree No. 134/2016/NĐ-CP (September 1, 2016)
・Decree No. 181/2025/NĐ-CP (July 1, 2025)
・Decree No. 126/2020/NĐ-CP (October 19, 2020)
・Decree No. 70/2025/NĐ-CP (March 20, 2025)
・Decree No. 123/2020/NĐ-CP (October 19, 2020)
・Circular No. 60/2019/TT-BTC (amending Circular No. 39/2018/TT-BTC)
・Circular No. 39/2018/TT-BTC (amending Circular No. 38/2015/TT-BTC)
・Decision No. 1357/QĐ-TCHQ (May 18, 2021)
・Official Letter No. 4067/TCHQ-TXNK (September 29, 2022)
・Official Letter No. 44614/CTHN-TTHT (Hanoi Tax Department, August 5, 2024)
・Official Letter No. 18195/BTC-TCHQ (December 8, 2015)
・Official Letter No. 1478/TCHQ-GSQL (April 26, 2022)
