Are goods temporarily imported for participation in exhibitions eligible for an environmental protection tax refund in Vietnam in 2024?

Are goods temporarily imported for participation in exhibitions eligible for an environmental protection tax refund in Vietnam in 2024?

Pursuant to Article 11 of the Law on Environmental Protection Tax 2010 which stipulates five cases eligible for an environmental protection tax refund in 2024, including:

[1] Imported goods that are stored in warehouses at the port and are under customs supervision are re-exported abroad;

[2] Imported goods for delivery or sale to foreign countries through agents in Vietnam; gasoline and oil sold for transportation vehicles of foreign companies on routes through Vietnamese ports or Vietnamese vehicles on international transportation routes as prescribed by law;

[3] Goods temporarily imported for re-export under temporary import and re-export business methods.

[4] Imported goods re-exported abroad by the importer;

[5] Goods temporarily imported for participation in fairs, exhibitions, and product introductions as prescribed by law when re-exported abroad.

Thus, goods temporarily imported for participation in exhibitions are eligible for an environmental protection tax refund.

Are goods temporarily imported for participation in exhibitions eligible for an environmental protection tax refund in Vietnam in 2024? (Image from the Internet)

How to calculate the environmental protection tax in Vietnam?

Pursuant to Article 6 of the Law on Environmental Protection Tax 2010, the environmental protection tax is based on the taxable quantity of goods and the absolute tax rate.

According to Article 7 of the Law on Environmental Protection Tax 2010, the formula for calculating the environmental protection tax is:

Environmental Protection Tax = Quantity of taxable goods x Absolute tax rate

Where the taxable quantity of goods is regulated as follows:

- For domestically produced goods, the taxable quantity is the quantity produced for sale, exchange, internal consumption, or gifts;

- For imported goods, the taxable quantity is the quantity imported.

- For mixed fuels containing gasoline, oil, and lubricants of fossil origin and biofuels, the taxable quantity is only calculated for the volume of fossil origin gasoline, oil, and lubricants in the mixed fuel.

What are regulations on environmental protection taxpayers in Vietnam?

Pursuant to Article 5 of the Law on Environmental Protection Tax 2010 which regulates taxpayers as follows:

- Environmental protection taxpayers are organizations, households, or individuals producing or importing goods subject to tax specified in Article 3 of this Law.

- Environmental protection taxpayers in certain cases are regulated as follows:

+ In case of consignment for import, the consignee is the taxpayer;

+ For organizations, households, or individuals acting as focal points for the purchase of small-scale mined coal without presenting proof of payment of environmental protection tax, the focal organizations, households, or individuals are the taxpayers.

According to Article 10 of the Law on Environmental Protection Tax 2010 regarding tax declaration, payment, and calculation as follows:

- The declaration, calculation, and payment of environmental protection tax on domestically produced goods sold, exchanged, internally consumed, or given as gifts are done monthly and as per tax management laws.

- The declaration, calculation, and payment of environmental protection tax on imported goods are conducted concurrently with import tax declaration and payment.

- The environmental protection tax is paid only once on produced or imported goods.

Based on Article 10 of the Law on Environmental Protection Tax 2010, the tax payment guidelines are specified in Article 5 of Decree 67/2011/ND-CP as follows:

Tax declaration, calculation, and payment shall comply with Article 10 of the Law on Environmental Protection Tax and tax management laws.

- For domestically produced goods sold, exchanged, internally consumed, or given as gifts, declaration, calculation, and payment of tax are done monthly. For imported goods, or goods imported on consignment, declaration, calculation, and payment are done per occurrence.

- Declaration, calculation, and payment of environmental protection tax on gasoline, oil, and lubricants: Primary petroleum companies shall declare and pay the environmental protection tax to the state budget for the quantity of gasoline/oil exported, sold (including exports for internal consumption, exchange for other products, exports for consignment imports, sales to other organizations, and individuals; excluding sales to other primary petroleum companies) at the location where VAT is declared and paid.

The Ministry of Finance regulates that primary companies must declare and pay environmental protection tax on gasoline/oil.

- The environmental protection tax declaration, calculation, and payment on coal are conducted according to the principle: Domestically consumed coal must be declared and paid for environmental protection tax; exported coal is not subject to environmental protection tax. The Ministry of Finance, in cooperation with the Ministry of Industry and Trade, provides specific guidance as stipulated in this clause.

- The environmental protection tax is paid only once on produced or imported goods. In cases where goods have been exported, paid for environmental protection tax, and subsequently re-imported to Vietnam, the tax is not payable upon re-importation.