Can export-import duties be paid in US dollars in Vietnam?

Can export-import duties be paid in US dollars in Vietnam?

Pursuant to Article 41 of Circular 38/2015/TT-BTC, the regulations are as follows:

Currency for tax payment

1. duties on exported and imported goods are to be paid in Vietnamese Dong. In cases where duties are paid in foreign currency, the taxpayer must use a freely convertible foreign currency as regulated. The exchange rate for converting the foreign currency to Vietnamese Dong is implemented as stipulated in Clause 2, Article 35 of this Circular.

2. In cases where duties must be paid in foreign currency but the official rate is not available at the time of customs declaration:

a) The taxpayer is allowed to temporarily pay duties in foreign currency before clearance or release of goods. After obtaining the official rate and receiving payment in foreign currency from the foreign customer, the taxpayer must pay any difference (if any) in foreign currency; or

b) The taxpayer is allowed to temporarily pay duties in Vietnamese Dong before clearance or release of goods. After obtaining the official rate and receiving payment in foreign currency from the foreign customer, the taxpayer must pay any difference (if any) in foreign currency. The exchange rate for converting the foreign currency to Vietnamese Dong is implemented as stipulated in Clause 2, Article 35 of this Circular.

Therefore, export-import duties must be paid in Vietnamese Dong and cannot be paid in US dollars.

*Note: In cases where duties are paid in foreign currency, the taxpayer must use a freely convertible foreign currency as regulated. The exchange rate for converting the foreign currency to Vietnamese Dong is implemented as stipulated.

Can export-import duties be paid in US dollars in Vietnam? (Image from the Internet)

What are bases for determining export-import tax in Vietnam?

Pursuant to Article 5 of the Law on Export and Import Tax 2016, the regulations are as follows:

Criteria for export and import duties on goods based on percentage method

1. The amount of export and import tax is determined based on the taxable value and the tax rate as a percentage (%) of each item at the time of taxation.

2. Tax rates for exported goods are specified for each item in the export tariff.

In cases where exported goods are sent to a country, group of countries, or territory with preferential tariff agreements in trade relations with Vietnam, these agreements shall be applied.

3. Tax rates for imported goods include preferential tax rates, special preferential tax rates, regular tax rates, and are applied as follows:

a) Preferential tax rates are applied to imported goods originating from countries, groups of countries, or territories that grant most-favored-nation treatment in trade relations with Vietnam; goods from duty-free zones imported into the domestic market meeting the origin conditions from countries, groups of countries, or territories granting most-favored-nation treatment in trade relations with Vietnam;

b) Special preferential tax rates are applied to imported goods originating from countries, groups of countries, or territories with special preferential tax agreements in trade relations with Vietnam; goods from duty-free zones imported into the domestic market meeting the origin conditions from countries, groups of countries, or territories with special preferential tax agreements in trade relations with Vietnam;

c) Regular tax rates apply to imported goods not falling under the provisions at points a and b of this clause. The regular tax rate is set at 150% of the preferential tax rate for each corresponding item. In cases where the preferential tax rate is 0%, the Prime Minister of the Government of Vietnam will decide on the regular tax rate based on the provisions of Article 10 of this Law.

Therefore, according to the above regulation, the amount of export-import tax is determined based on the taxable value and the tax rate as a percentage (%) of each item at the time of taxation.

What are criteria used to determine the amount of export-import tax applied via the fixed duties in Vietnam?

Pursuant to Article 6 of the Law on Export and Import Tax 2016, the regulations are as follows:

Criteria for export and import duties on goods applying the fixed duties, mixed duties

1. The amount of tax applying the fixed duties for exported and imported goods is determined based on the actual quantity of goods exported or imported and the absolute tax rate specified per unit of goods at the time of taxation.

2. The amount of tax applying the mixed duties for exported and imported goods is determined as the total amount of tax based on percentage and the absolute amount of tax as stipulated in Clause 1 of Article 5 and Clause 1 of Article 6 of this Law.

Therefore, according to the above regulation, the amount of export-import tax applying the fixed duties is determined based on the actual quantity of goods exported or imported and the absolute tax rate specified per unit of goods at the time of taxation.