Are ambulances subject to excise tax in Vietnam?

Are ambulances subject to excise tax in Vietnam?

Based on Article 3 of the Law on Excise Tax 2008 regarding non-taxable objects as follows:

Non-taxable objects

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3. Aircraft, yachts used for the purpose of transporting goods, passengers, and tourists;

4. Ambulance cars; prisoner transport cars; funeral cars; cars designed to have both seating and standing places that can carry 24 people or more; cars operating in amusement parks, entertainment, and sports areas that are not registered for circulation and do not participate in traffic;

5. Goods imported from abroad into non-tax areas, goods sold domestically into non-tax areas and only used within non-tax areas, goods sold between non-tax areas, except for cars carrying fewer than 24 seats.

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In addition, according to Clause 4 Article 3 of Decree 108/2015/ND-CP related to non-taxable objects as follows:

Non-taxable objects

4. For automobiles specified in Clause 4 Article 3 of the Law on Excise Tax, these are the types of vehicles designed by the manufacturer for use as ambulances, prisoner transport cars, funeral cars; vehicles designed to have both seating and standing places that can carry 24 people or more; cars operating in amusement parks, entertainment, and sports areas that are not registered for circulation and do not participate in traffic, and specialized vehicles, vehicles not registered for circulation, and not participating in traffic, as specified by the Ministry of Finance in cooperation with relevant ministries and agencies.

Thus, based on the above regulations, ambulances are not subject to the excise tax and therefore are exempt from it.

Are ambulances subject to excise tax in Vietnam? (Image from the Internet)

What are the regulations on excise taxpayers in Vietnam?

Based on Article 4 of the Law on Excise Tax 2008 on who are liable to pay excise tax as follows:

- Excise taxpayers are organizations and individuals producing, importing goods, and engaging in services that are subject to excise tax.

- In cases where organizations and individuals involved in export business purchase goods subject to excise tax from manufacturers for export but do not export and consume them domestically, the organizations and individuals involved in export business are the excise taxpayers.

What are cases for excise tax refunds in Vietnam?

Based on Article 8 of the Law on Excise Tax 2008 regulating cases for tax refunds and deductions as follows:

- excise taxpayers are entitled to a tax refund in the following cases:

+ Temporarily imported goods for re-export;

+ Imported goods used as materials for manufacturing and processing export goods;

+ Tax settlement when merging, consolidating, dividing, splitting, dissolving, bankrupting, changing ownership, converting enterprises, or terminating operations with excess tax paid;

+ Tax refund decision by competent authorities according to legal provisions and cases of excise tax refunds under international treaties to which the Socialist Republic of Vietnam is a member.

excise tax refunds in points a and b of this clause are only applicable to goods actually exported.

Additionally, tax refund and deduction procedures are further specified in Article 6 of Decree 108/2015/ND-CP (amended by Clause 2 Article 1 of Decree 14/2019/ND-CP) as follows:

Tax refunds are carried out according to the provisions of Article 8 of the Law on Excise Tax 2008.

- For temporarily imported goods for re-export specified in point a Clause 1 Article 8 of the Law on Excise Tax 2008:

+ Imported goods that have paid excise tax but are stored at ports and supervised by customs authorities, then re-exported abroad;

+ Imported goods that have paid excise tax to be delivered, sold to foreign entities through agents in Vietnam; imported goods sold to foreign carriers on routes through Vietnamese ports or Vietnamese carriers on international routes as stipulated by law;

+ Temporarily imported goods for re-export according to the method of temporary import for re-export, equivalent to the excise tax paid on the actual re-exported goods;

+ Imported goods that have paid excise tax but are re-exported abroad will be refunded the excise tax paid for the re-exported goods;

+ Temporarily imported goods for exhibitions, shows, product introductions, or to serve other purposes within a time limit as prescribed by law, paying the excise tax, will be refunded upon re-export.

In cases of temporary import for re-export, if the goods have been actually re-exported within the tax payment deadline as stipulated by export-import tax laws, the excise tax payable on the actual re-exported goods is exempted.

- Imported materials for manufacturing and processing export goods are refunded the corresponding excise tax paid on the materials used for the actual manufactured export goods.

- Procedures, dossiers, processes, and authorities for resolving excise tax refunds:

+ Procedures, dossiers, processes, and authorities for resolving excise tax refunds for temporarily imported goods for re-export as stipulated in Clause 1 of this Article are carried out as specified for import tax refunds.

+ Procedures, dossiers, processes, and authorities for resolving excise tax refunds for materials imported for manufacturing and processing export goods are stipulated.

If the import declaration includes import tax and excise tax requesting a refund, the import tax refund dossier concurrently serves as the excise tax refund dossier.

- Enterprises undergo tax settlement when merging, dividing, splitting, dissolving, bankrupting, changing the form of ownership, distributing, leasing, or contracting state enterprises with excess excise tax paid.

- excise tax refunds specified in point d clause 1 Article 8 of the Law on Excise Tax 2008 include:

+ Refunds according to decisions by competent authorities as prescribed by law;

+ Refunds under international treaties to which the Socialist Republic of Vietnam is a member;

+ Refunds in cases where the excise tax paid exceeds the payable excise tax amount prescribed by law.