Are termite pesticides subject to environmental protection tax in Vietnam?

Are termite pesticides subject to environmental protection tax in Vietnam?

Under Clause 1, Article 2 of the Environmental Protection Tax Law 2010, environmental protection tax is defined as follows:

Environmental protection tax means indirect-collected tax, collected on products and goods (hereafter referred to as goods) when used to cause negative environmental impacts.

Additionally, according to Article 3 of the Environmental Protection Tax Law 2010:

Goods subject to environmental protection tax include:

- Gasoline, oil, grease, including:

+ Gasoline, except ethanol;

+ aircraft fuel;

+ diesel oil;

+ Petroleum;

+ Fuel oil;

+ lubricants;

+ Grease.

And in Article 2 of the Decree 67/2011/ND-CP amended by Article 1 of the Decree 69/2012/ND-CP, it is further guided as follows:

- The gasoline, oil, grease specified above are the fossil-original gasoline, oil, grease.

For fuel mixtures containing biodiesel and fossil-original gasoline, oil, grease, the environmental protection tax is applied only for the part of fossil-original gasoline, oil, grease.

- The Hydrogen-chlorofluorocarbon liquid (denoted as HCFC) specified in Clause 3, Article 3 of the Law on Environmental Protection Tax is the gas as solvent used in refrigeration equipment and in semiconductor industry.

- The taxable nylon bags (plastic bags) specified in Clause 4 Article 3 of the Law on Environment protection tax are the thin bags and packages in form of bags (with an opening, base, body, and can contain products) made of high density polyethylene resin (HDPE), low density polyethylene (LDPE), or linear low density polyethylene resin (LLDPE), except for packages of goods and nylon bags that satisfy the eco-friendly criteria as prescribed by the Ministry of Natural Resources and Environment.

The packages of goods prescribed in this Clause (whether or not in form of bags) include:

+ Packages of imported goods;

+ The packages produced or imported by organizations or households to pack the products that they produce, process, or purchase, or to provide packaging services.

+ The packages that organizations or households directly purchase from the producers or importers to pack the products that they produce, process, or purchase, or to provide packaging services.

- Herbicide which is restricted from use;

- Pesticide which is restricted from use;

- Forest products preservative which is restricted from use;

- Warehouse disinfectant which is restricted from use.

- When it is necessary to supplement other taxable objects as per period, the National Assembly Standing Committee shall consider and regulate.

Thus, according to the above regulations, termite pesticides will be subject to environmental protection tax.

Are termite pesticides subject to environmental protection tax in Vietnam? (Image from the Internet)

What is the tax calculation time for goods used for advertising subject to environmental protection tax in Vietnam?

The tax calculation time for environmental protection tax is stipulated in Article 9 of the Environmental Protection Tax Law 2022 and Article 6 of the Circular 152/2011/TT-BTC as follows:

- 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.

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

- 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.

- 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.

Thus, the tax calculation time for goods used for advertising subject to environmental protection tax in Vietnam is the time of transfer of the goods ownership or use right.

Will the environmental protection tax on goods imported to deliver to foreign customers via Vietnamese agents be refunded?

Under Article 11 of the Environmental Protection Tax Law 2010:

Environmental protection taxpayer is paid tax refund in the following cases:

- Imported goods are still stored in warehouse, storage at the border gate and are subject to be supervised by the customs authority for re-export to foreign countries;

- Imported goods to transport, sell abroad through agents in Vietnam; gasoline, petrol sold for vehicles of foreign firms on the route through Vietnam's ports or means of Vietnam's transportation on international transport road under the provisions of law;

- Goods temporarily imported for re-export by business mode of temporary import for re-export.

- Goods imported by the importer re-exporting to foreign countries;

- Goods temporarily imported for participation in fairs, exhibitions and introduction of products in accordance with the law when re-exported to foreign countries.

Thus, according to the above regulations, the environmental protection tax on goods imported to deliver to foreign customers via Vietnamese agents will be refunded.