Are indirectly exported goods subject to import and export duties in Vietnam?

Is indirectly exported goods subject to import and export duties in Vietnam?

Based on Clause 3, Article 2 of the Law on Export and Import Duties 2016, the subjects subject to tax are stipulated as follows:

Subjects subject to tax

1. Goods exported and imported through the Vietnam customs border, national border.

2. Goods exported from the domestic market into a free trade zone, goods imported from a free trade zone into the domestic market.

3. indirectly exported and imported goods and goods exported and imported by enterprises exercising the right to export, right to import, and distribution rights.

4. Subjects subject to export duty and import tax do not apply to the following cases:

a) Goods in transit, transshipment, and transiting;

b) Humanitarian aid goods, non-refundable aid goods;

c) Goods exported from free trade zones out of the country; goods imported from abroad into free trade zones and used only within free trade zones; goods transferred from one free trade zone to another;

d) Crude oil used to pay resource tax to the state when exported.

5. The Government of Vietnam shall provide detailed regulations on this Article.

From the above regulations, it can be seen that indirectly exported goods are among the subjects subject to import and export duties.

Are indirectly exported goods subject to import and export duties in Vietnam? (Image from the Internet)

Which entities are responsible for paying tax on indirectly exported goods in Vietnam?

According to Article 3 of the Law on Export and Import Duties 2016, the parties responsible for paying tax on indirectly exported goods include:

- Owners of the exported, imported goods.

- Organizations entrusted with export and import.

- Persons leaving or entering the country with exported, imported goods, sending, or receiving goods through the Vietnam customs border, national border.

- Authorized persons, sureties, and those who pay tax on behalf of taxpayers, including:

+ Customs brokerage agencies in the case of being authorized by the taxpayer to pay export and import tax;

+ Enterprises providing postal services, international express delivery services in case of paying tax on behalf of taxpayers;

+ Credit institutions or other organizations operating under the Law on Credit Institutions in cases of guaranteeing, paying taxes on behalf of taxpayers;

+ Individuals authorized by the goods owner in cases where the goods are gifts of individuals; luggage sent before or after the trip of persons leaving or entering the country;

+ Branches of enterprises authorized to pay tax on behalf of enterprises;

+ Other persons authorized to pay taxes on behalf of taxpayers in accordance with the law.

- Persons engaged in purchasing or transporting goods within the tax-exempt limits of border residents but not used for production or consumption and sold in the domestic market, and foreign traders allowed to trade in exported, imported goods at border markets according to the law.

- Persons with exported, imported goods that are not subject to tax or are tax-exempt but then have changes and become subject to tax in accordance with the law.

- Other cases as prescribed by law.

When is the deadline for paying export duty in Vietnam?

As stipulated in Article 9 of the Law on Export and Import Duties 2016, the deadline for paying export duty is as follows:

- Goods that are exported, imported, and subject to tax must be taxed before customs clearance or release according to the Law on Customs 2014, except in cases where taxpayers are applied priority policies under the Law on Customs 2014 which allows tax payment for customs declarations that have been cleared or released in the month no later than the tenth day of the following month.

- In cases guaranteed by credit institutions for tax payment, the goods can be cleared or released, but interest on late tax payment must be paid according to the Law on Tax Administration 2019 from the day they are cleared or released until tax payment. The maximum guarantee period is 30 days from the date of registration of the customs declaration.

- In cases where the credit guarantee has been provided but the guarantee period expires and the taxpayer has not paid tax and late payment, the guaranteeing organization is responsible for paying the full amount of tax and late payment on behalf of the taxpayer.

- Taxpayers applied with priority policies under the Law on Customs 2014 can pay taxes for customs declarations that have been cleared or released in the month no later than the tenth day of the following month. Beyond this period, if the taxpayer has not paid the tax, the full amount of tax arrears and late payment must be paid as regulated by the Law on Tax Administration 2019.