Are goods temporarily imported for re-export subject to environmental protection tax in Vietnam?

Are goods temporarily imported for re-export subject to environmental protection tax in Vietnam?

Pursuant to Article 4 of the Law on Environmental Protection Tax regarding Un-taxable object:

Un-taxable object

1. Goods not specified in Article 3 of this Law are not subject to environmental protection tax.

2. Goods specified in Article 3 of this Law are not subject to environmental protection tax in the following cases:

a) Goods in transit or transshipped through border gates and borders of Vietnam as per legal regulations, including goods transported from the exporting country to the importing country via Vietnamese border gates without completing import procedures into Vietnam and without completing export procedures out of Vietnam; goods transiting through Vietnamese border gates on the basis of agreements signed between the Government of Vietnam and the government of foreign countries or agreements between authorized representatives of the Government of Vietnam and foreign governments as per legal provisions;

b) Goods temporarily imported and re-exported within the time limit prescribed by law;

c) Goods directly exported by the production facility or entrusted to export businesses, except for cases where organizations, households, or individuals purchase goods subject to environmental protection tax for export.

Goods that are temporarily imported and re-exported within the prescribed time limit are not subject to environmental protection tax. Therefore, goods temporarily imported for re-export will not be subject to environmental protection tax.

Are goods temporarily imported for re-export subject to environmental protection tax in Vietnam? (Image from the Internet)

Who is subject to environmental protection tax in Vietnam?

Pursuant to Article 3 of the Law on Environmental Protection Tax, the subjects of environmental protection tax include:

(1). Gasoline, oil, lubricants, including:

- Gasoline, except ethanol;

- Jet fuel;

- Diesel fuel;

- Kerosene;

- Mazut oil;

- Lubricating oil;

- Lubricating grease.

(2). Coal, including:

- Lignite;

- Anthracite coal;

- Bituminous coal;

- Other types of coal.

(3). Hydrochlorofluorocarbon (HCFC) solution.

(4). Taxable plastic bags.

(5). Herbicides under restricted use.

(6). Termiticides under restricted use.

(7). Wood preservatives under restricted use.

(8). Warehouse disinfectants under restricted use.

* If deemed necessary, the Standing Committee of the National Assembly shall consider and decide on the addition of other taxable subjects to suit each period.

What is the tariff table of environmental protection tax in Vietnam?

Pursuant to Article 8 of the Law on Environmental Protection Tax, the absolute tax rate is prescribed according to the tax tariff table below:

* Based on the tax tariff table, the Standing Committee of the National Assembly prescribes specific tax rates for each type of taxable goods to ensure the following principles:

- The tax rate for taxable goods aligns with the State's socio-economic development policies in each period;

- The tax rate for taxable goods is determined based on the level of negative impact on the environment caused by the goods.

When is environmental protection tax refundable in Vietnam?

Pursuant to Article 11 of the Law on Environmental Protection Tax, the taxpayer is eligible for a refund of the paid environmental protection tax in the following cases:

- Imported goods stored in warehouses at border gates under the supervision of the Customs Authority are re-exported abroad;

- Imported goods sold to foreign parties through agents in Vietnam; gasoline and oil sold to foreign carriers on routes through Vietnamese ports or Vietnamese carriers on international routes in accordance with legal regulations;

- Temporarily imported goods for re-export under the mode of temporary importation, re-exportation business.

- Imported goods re-exported abroad by the importer;

- Temporarily imported goods for display at fairs, exhibitions, product introduction events as per legal regulations when re-exported abroad.

How to declare, calculate, and pay environmental protection tax in Vietnam?

Pursuant to Article 10 of the Law on Environmental Protection Tax, the declaration, calculation, and payment of environmental protection tax are as follows:

- The declaration, calculation, and payment of environmental protection tax for goods produced for sale, exchange, internal consumption, and gifting are conducted monthly and in accordance with the law on tax administration.

- The declaration, calculation, and payment of environmental protection tax for imported goods are conducted simultaneously with the declaration and payment of import tax.

- Environmental protection tax is only paid once for goods produced or imported.