Are aircraft fuel subject to environmental protection tax in Vietnam? How to determine the environmental protection tax for imported aircraft fuel?

Are aircraft fuel subject to environmental protection tax in Vietnam?

Entities subject to environmental protection tax are stipulated in Article 3 of the Law on Environmental Protection Tax 2010 as follows:

Entities Subject to Tax

1. Gasoline, oil, lubricants, including:

a) Gasoline, excluding ethanol;

b) aircraft fuel;

c) Diesel oil;

d) Kerosene;

đ) Mazut oil;

e) Lubricating oil;

g) Grease.

2. Coal, including:

a) Brown coal;

b) Anthracite coal;

c) Fat coal;

d) Other types of coal.

3. Hydro-chloro-fluoro-carbon (HCFC) solution.

4. Plastic bags subject to tax.

...

Thus, according to regulations, aircraft fuel is one of the subjects liable to environmental protection tax.

How to determine the environmental protection tax for imported aircraft fuel in Vietnam?

According to Article 6 of the Law on Environmental Protection Tax 2010, the basis for calculating the environmental protection tax on imported goods is as follows:

Basis for Tax Calculation

1. The basis for calculating environmental protection tax is the quantity of taxable goods and the absolute tax rate.

2. The quantity of taxable goods is regulated as follows:

a) For domestically produced goods, the taxable quantity is the quantity of goods sold, exchanged, internally consumed, or gifted;

b) For imported goods, the taxable quantity is the quantity of imported goods.

3. The absolute tax rate for calculation is provided in Article 8 of this Law.

At the same time, Article 5 of Circular 152/2011/TT-BTC also stipulates the basis for calculating environmental protection tax applicable to imported goods as follows:

Basis for Tax Calculation

The basis for calculating environmental protection tax is the quantity of taxable goods and the absolute tax rate

1. The quantity of taxable goods is regulated as follows:

1.1. For domestically produced goods, the taxable quantity is the quantity of goods sold, exchanged, internally consumed, gifted, promoted, or advertised.

1.2. For imported goods, the taxable quantity is the quantity of imported goods.

For cases where the quantity of taxable goods exported, sold, and imported is measured in units different from those specified for tax calculation in the environmental protection tax schedule issued by the Standing Committee of the National Assembly, they must be converted to the units specified in the environmental protection tax schedule for tax calculation.

1.3. For goods that are mixed fuels containing fossil-based gasoline, oil, grease, and biofuels, the taxable quantity in the period is the quantity of fossil-based gasoline, oil, grease in the quantity of mixed fuels imported or produced for sale, exchange, gift, or internal consumption, converted to the units specified for tax calculation of the corresponding goods. The method of determination is as follows:

...

Thus, according to the above regulations, the quantity of imported aircraft fuel is based on the quantity of imported grease to calculate environmental protection tax.

*Note: In cases where the quantity of taxable goods exported, sold, and imported is measured in units different from those specified for tax calculation in the environmental protection tax schedule issued by the Standing Committee of the National Assembly, they must be converted to the units specified in the environmental protection tax schedule for tax calculation.

Moreover, the point at which the environmental protection tax applies to imported aircraft fuel is based on Article 9 of the Law on Environmental Protection Tax 2010 regarding the timing of tax calculation as follows:

Timing of Tax Calculation

1. For goods produced for sale, exchange, or gift, the tax calculation time is the time of transfer of ownership or the right to use the goods.

2. For goods produced for internal consumption, the tax calculation time is the time the goods are put into use.

3. For imported goods, the tax calculation time is the time of customs declaration registration.

4. For gasoline, oil produced or imported for sale, the tax calculation time is the time the petroleum trading hub sells out.

For imported goods, the tax calculation time is the time of customs declaration registration.

Are aircraft fuel subject to environmental protection tax in Vietnam? How to determine the environmental protection tax for imported aircraft fuel? (Image from the Internet)

How is the to determine tax on imported aircraft fuel in Vietnam?

According to Article 4 of Circular 152/2011/TT-BTC, the environmental protection tax payable in trading aircraft fuel is determined by the following formula:

Moreover, Clause 1, Article 8 of the Law on Environmental Protection Tax 2010 prescribes the tax rate applicable to imported grease as follows:

Additionally, the environmental protection tax on imported grease is determined by the following formula:

Thus, the environmental protection tax applicable to imported aircraft fuel is 1,000-3,000 VND per liter.