Are goods imported as humanitarian aid subject to value-added tax in Vietnam?

Are goods imported as humanitarian aid subject to value-added tax in Vietnam?

According to the provisions in Clause 19, Article 5 of the Law on Value Added Tax 2008, the objects not subject to tax are as follows:

Non-taxable objects

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19. Imported goods in the case of humanitarian aid, non-refundable aid; gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, social-professional organizations, people's armed units; gifts for individuals in Vietnam according to the regulations of the Government of Vietnam; goods of foreign organizations and individuals according to diplomatic immunity standards; goods carried on person within duty-free luggage standards.

Goods and services sold to foreign organizations and individuals, international organizations for humanitarian aid, non-refundable aid to Vietnam.

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Meanwhile, Clause 19, Article 4 of Circular 219/2013/TT-BTC provides guidance as follows:

Objects not subject to VAT

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19. Imported goods and goods, services sold to organizations, individuals for humanitarian aid, non-refundable aid in the following cases:

a) Imported goods in the case of humanitarian aid, non-refundable aid and must be certified by the Ministry of Finance or Department of Finance;

b) Gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, social-professional organizations, people's armed units according to legal regulations on gifts;

c) Gifts for individuals in Vietnam according to legal regulations on gifts;

d) Goods of foreign organizations and individuals according to diplomatic immunity standards under legal regulations on diplomatic privileges and immunities; goods are possessions of overseas Vietnamese resettling in Vietnam;

đ) Goods carried on person within duty-free luggage standards;

The level of imported goods that are not subject to VAT at the import stage aligns with the import duty exemption level regulated in the Import and Export Tax Law and guiding documents.

Imported goods of organizations and individuals entitled to diplomatic immunity under legal regulations on diplomatic privileges and immunities are not subject to VAT. If those with diplomatic immunity purchase goods and services in Vietnam that are subject to VAT, they fall under the tax refund case as guided in Clause 7, Article 18 of this Circular.

Objects, goods, and procedures for dossiers to enjoy diplomatic immunities are guided by the Ministry of Finance regarding implementing VAT refunds for diplomatic missions, consular offices, and representative offices of international organizations in Vietnam.

e) Goods and services sold to foreign organizations and individuals, international organizations for humanitarian aid, non-refundable aid to Vietnam.

Procedures for international organizations, foreigners purchasing goods and services in Vietnam for humanitarian aid, non-refundable aid to Vietnam to be VAT-exempt: international organizations, foreigners must send a document to the selling facility, clearly stating the name of the international organization, foreign person purchasing goods and services for humanitarian aid, non-refundable aid to Vietnam, quantity or value of goods purchased; certification from the Ministry of Finance or Department of Finance regarding this aid.

When selling goods, the business establishment must issue invoices in accordance with the legal regulations on invoices, clearly stating that the goods are sold to foreign organizations and individuals, international organizations for non-refundable aid, humanitarian aid without VAT and must retain the document of the international organization or Vietnamese representative agency as a basis for tax declaration. If foreign organizations, individuals, or international organizations purchase goods and services in Vietnam for non-refundable aid, humanitarian aid with VAT, they fall under the tax refund case as guided in Clause 6, Article 18 of this Circular.

Thus, goods imported as humanitarian aid are not subject to value-added tax; however, these goods imported as humanitarian aid must be certified by the Ministry of Finance or Department of Finance.

Are goods imported as humanitarian aid subject to value-added tax in Vietnam? (Image from Internet)

Are export-import duties applied to goods imported as humanitarian aid in Vietnam?

Pursuant to Article 2 of the Import and Export Tax Law 2016, it stipulates as follows:

Taxable objects

1. Goods exported, imported through Vietnam's borders or checkpoints.

2. Goods exported from the domestic market to the non-tariff area, goods imported from the non-tariff area into the domestic market.

3. Goods locally exported, imported and goods exported, imported by businesses exercising export rights, import rights, distribution rights.

4. Non-application of export and import duties applies to the following cases:

a) Goods in transit, transshipment;

b) goods imported as humanitarian aid, non-refundable aid goods;

c) Goods exported from the non-tariff area abroad; goods imported from abroad into the non-tariff area and only used within the non-tariff area; goods transferred from one non-tariff area to another;

d) The portion of petroleum used to pay natural resource tax to the State upon export.

5. the Government of Vietnam determines the specific details of this Article.

Therefore, goods imported as humanitarian aid are not subject to import-export duties under legal regulations.

Thus, entities receiving aid from a non-Government of Vietnam organization are not required to pay taxes.

What is the deadline for paying import-export duties in Vietnam?

Based on Article 9 of the Import and Export Tax Law 2016, it stipulates as follows:

- Exported and imported goods that are subject to taxes must pay taxes before customs clearance or goods release as per regulations.

If guaranteed by a credit institution for the tax amount to be paid, goods may be cleared or released, but late payment interest must be paid according to the tax management law from the clearance or release date to the tax payment date.

The maximum guarantee period is 30 days from the date of registering the customs declaration.

If the guarantee period expires without tax and late payment interest being paid, the guarantor is responsible for fully paying tax and late payment interest on behalf of the taxpayer.

- Taxpayers entitled to preferential policies under the customs law may remit taxes for customs declarations cleared or released in a month, no later than the tenth day of the following month.

After this period, if taxpayers have not paid taxes, they must fully pay the tax debt and late payment interest as stipulated.