Are plastic bags subject to environmental protection tax in Vietnam?

Are plastic bags subject to environmental protection tax in Vietnam?

Under Clause 4, Article 1 of Circular 152/2011/TT-BTC (amended and supplemented by Article 1 of Circular 159/2012/TT-BTC:

Taxable objects

...

4. Taxable nylon bags (plastic bags) re thin plastic bags and packages, that open at the top and may store products therein, made of HPDE (high density polyethylene resin), LDPE (low density polyethylene) or LLDPE (linear low density polyethylene resin), except for packages of pre-packed goods that satisfy the eco-friendly standards as from being issue with the Certificate of Eco-friendly nylon bag as prescribed by the Ministry of Natural Resources and Environment.

The packages of pre-packed goods (whether or not in the form of a bag) provided in this Clause are specified as follows:

a) The packages of pre-packed goods include:

a1) The packages of pre-packed imported goods.

a2) Packages produced or imported by organizations, households, or individuals to pack the products that they produce, process, or buy, or to provide packaging services.

...

a3) Packages directly purchased by organizations, households, or individuals from the producer or the importer to pack the products that they produce, process, or buy, or provide packaging services.

Therefore, plastic bags fall under the category subject to environmental protection tax.

Taxable nylon bags (plastic bags) re thin plastic bags and packages, that open at the top and may store products therein, made of HPDE (high-density polyethylene resin), LDPE (low density polyethylene) or LLDPE (linear low density polyethylene resin).

Are plastic bags subject to environmental protection tax in Vietnam? (Image from the Internet)

What is the tax calculation time for plastic bags produced for internal consumption in Vietnam?

Under Article 6 of Circular 152/2011/TT-BTC, the tax calculation time for plastic bags produced for internal consumption is regulated as follows:

Tax calculation time

1. For produced goods sold, exchanged, donated, used for sales promotion or advertising, the tax calculation time is the time of transfer of the goods ownership or use right.

2. For produced goods used for internal consumption, the tax calculation time is the time goods are put into use.

3. For imported goods, the tax calculation time is the time of registration of customs declarations, except petrol and oil imported for sale as specified in Clause 4 of this Article.

4. For petrol and oil produced or imported for sale, the tax calculation time is the time principal petrol and oil traders sell petrol and oil.

For goods produced for internal consumption, the tax calculation time is the time goods are put into use.

Thus, the tax calculation time for plastic bags produced for internal consumption is the time goods are put into use.

What are the 5 cases where taxpayers are eligible for environmental protection tax refund in Vietnam?

According to Article 8 of Circular 152/2011/TT-BTC, environmental protection taxpayers may have the paid environmental protection tax amount refunded in the 05 following cases:

- Imported goods which are still in warehouses or storing yards at border gates and under customs supervision and allowed to be re-exported abroad.

- Goods imported for transfer and sale to foreign parties via Vietnam-based agents; petrol and oil sold to foreign firms' vehicles on routes via Vietnamese ports or to Vietnamese vehicles on international routes under law.

- For goods temporarily imported for re-export by the mode of temporary import for re-export, the paid environmental protection tax amount shall be refunded for the quantity of re-exported goods.

- For imported goods re-exported abroad by importers (including returned goods), the paid environmental protection tax amount shall be refunded for the quantity of re-exported goods.

- For goods temporarily imported for display at fairs, exhibitions or product shows. the paid environmental protection tax amount shall be refunded for the quantity of re-exported goods.

Refund of environmental protection tax under this Article applies only to actually exported goods.

Procedures, dossiers, order and competence for environmental protection tax refund for exported goods comply with regulations applicable to refund of import duty under the law on import duty and export duty.