From December 16, 2024, what will be the preferential import tax duty for e-cigarettes in Vietnam?

From December 16, 2024, what will be the preferential import tax duty for e-cigarettes in Vietnam?

Pursuant to Article 1 of Decree 144/2024/ND-CP (document effective from December 16, 2024) stipulating the amendment of the preferential import tax duty for certain commodities as follows:

Amending the export tax rate, preferential import tax duty for certain commodities specified in Appendix I - Export Tariff, Appendix II - Preferential Import Tariff according to the Taxable Commodity List stipulated in Article 3 of Decree 26/2023/ND-CP

Amending the export tax rate, preferential import tax duty for certain commodities specified in Appendix I - Export Tariff, Appendix II - Preferential Import Tariff according to the Taxable Commodity List stipulated in Article 3 of Decree 26/2023/ND-CP dated May 31, 2023, of the Government of Vietnam to new tax rates specified in Appendix I and Appendix II issued with this Decree.

Simultaneously, according to the regulations in Appendix 2 of the Preferential Import Tariff according to the Taxable Commodity List issued with Decree 144/2024/ND-CP stipulating the tax rates for certain commodities applying preferential import tax.

Thus, from December 16, 2024, e-cigarettes will be subject to a preferential import tax rate of 50%.

From December 16, 2024, what will be the preferential import tax duty for e-cigarettes in Vietnam? (Image from the Internet)

Which entities are import tax payers in Vietnam?

According to Article 3 of Law on export and import duties 2016, import tax payers are defined as follows:

- Owners of imported goods.

- Organizations authorized to entrust imports.

- Persons entering the country with imported goods, sending or receiving goods through Vietnamese border gates.

- Persons authorized, guaranteed, and paying duties on behalf of taxpayers, including:

+ Customs procedure agents authorized by taxpayers to pay import duties;

+ Companies providing postal services, international express delivery services in cases of paying duties on behalf of taxpayers;

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

+ Persons authorized by the owner of goods in cases of goods as gifts or donations from individuals; luggage sent before or after the trip of the entrant;

+ Branches of companies authorized to pay duties on behalf of the enterprises;

+ Other people authorized to pay duties on behalf of taxpayers according to legal regulations.

- People purchasing, transporting goods within the tax exemption limits of border residents but not using them for production, consumption and selling them in the domestic market or foreign merchants permitted to trade imported goods at the border market according to legal provisions.

- People with imported goods subject to tax exemption but later changing to taxable subjects according to legal regulations.

What is the deadline for paying import duties in Vietnam?

According to Article 9 of Law on export and import duties 2016 stipulating the deadline for paying import duties as follows:

- Imported goods subject to tax must be paid before customs clearance or releasing goods according to the provisions of the Customs Law, except for the cases stipulated in Clause 2 Article 9 of the Law on export and import duties 2016.

In cases where tax payable is guaranteed by credit institutions, customs clearance or goods release may still occur, but late payment interests must be paid according to the provisions of the Tax Administration Law from the date of customs clearance or goods release to the date of tax payment. The maximum guarantee period is 30 days from the registration date of the customs declaration.

In cases where guaranteed by credit institutions but past the guarantee period and the taxpayer has not paid duties and late payment interests, the guarantor is responsible for fully paying the duties and late payment interests on behalf of the taxpayer.

- Taxpayers applying priority policies according to the Customs Law are to pay duties for customs declarations cleared or goods released within the month no later than the tenth day of the following month. Beyond this period, if taxpayers have not paid duties, they must pay the full tax debt and late payment interests as prescribed by the Tax Administration Law.