How many times will the environmental protection tax be paid for imported goods in Vietnam?

How many times will the environmental protection tax be paid for imported goods in Vietnam?

Based on Clause 3, Article 10 of the Environmental Protection Tax Law 2010 which stipulates the declaration, calculation, and payment of the environmental protection tax as follows:

Tax declaration, tax calculation and tax payment

1. The tax declaration, tax calculation, tax payment for environmental protection on goods produced and sold, exchanged, internally consumed, donated shall be made by the month and the provisions of the law on tax administration.

2. The tax declaration, tax calculation, tax payment for environmental protection on imported goods shall be made at the same to time of import tax declaration and tax payment.

3. Environmental protection tax is only paid once for goods produced or imported.

Thus, according to the above provisions, the environmental protection tax is only paid once for goods produced or imported..

How many times will the environmental protection tax be paid for imported goods in Vietnam? (Image from the Internet)

What are the instructions for declaring the environmental protection tax by taxpayers in Vietnam?

Under the provisions of Sub-item 21, Section 2 of administrative procedures issued with Decision No. 1462/QD-BTC in 2022 guiding the declaration of the environmental protection tax as follows:

Step 1: The taxpayer prepares data, makes a tax declaration form, and submits it to the tax authority no later than the 20th of the following month in which the tax liability arises. To be specific:

- Taxpayers submit the environmental protection tax declaration dossier at the place where the taxable goods are produced, where the coal business and production are conducted, except for the environmental protection tax for petroleum business activities (stipulated at Point a, Clause 4, Article 11 of Decree No. 126/2020/ND-CP), and the environmental protection tax on extract, and local sales of coal (stipulated at Point b, Clause 4, Article 11 of Decree No. 126/2020/ND-CP).

- For petroleum business activities:

+ Principal traders directly importing, producing, or blending petroleum products submit the tax declaration dossier to the tax authority managing the quantities of petroleum products sold directly by principal traders, including internal use, product exchange, return of consignment imports, and sales to other organizations and individuals not being affiliated units or subsidiaries as per the Enterprise Law 2020 of the principal traders; excluding quantities of petroleum sold and consigned imports for other principal traders.

+ Subsidiaries as per the Enterprise Law 2020 of principal traders, or the dependent units of the subsidiaries, submit tax declaration dossiers to tax authorities managing the quantities of petroleum sold directly to other organizations and individuals not being subsidiaries as per the Enterprise Law 2020 of principal traders and dependent units of subsidiaries.

+ Principal traders or subsidiaries as per the Enterprise Law 2020 of principal traders with dependent units operating in locations different from the provinces or cities where the principal traders or their subsidiaries are headquartered, where the dependent units cannot separately account for environmental protection tax, the principal traders or their subsidiaries shall declare the environmental protection tax to their managing tax authorities, calculate tax, and allocate the tax obligations to be paid to each location where the dependent units are headquartered as stipulated by the Minister of Finance.

- For coal extraction and local sales:

Enterprises engaged in the extraction and local sales of coal, through management forms and commission to subsidiaries or dependent units for extraction, processing, and sale, the unit undertaking coal sales shall declare taxes for the entire environmental protection tax arising for taxable coal extraction and submit a tax declaration dossier to their managing tax authorities, along with the tax determination table for each location where coal extraction companies are headquartered as stipulated by the Minister of Finance.

Step 2: Tax Authority Reception:

- Tax authorities receive tax declaration dossiers, and issue notifications of dossier reception; in case the dossier is illegal, incomplete, or incorrect, notify the taxpayers within 03 working days from the date of dossier reception.

- If receiving dossiers through the electronic portal of the General Department of Taxation, the tax authorities shall receive, check, and process the dossiers through the electronic data processing system of the tax authorities:

+ The electronic portal of the General Department of Taxation sends a receipt notification to the taxpayer for the submitted dossier or a notification of reasons for not receiving the dossier through the electronic portal selected by the taxpayer (the electronic portal of the General Department of Taxation/Government Portal or T-VAN service providers) no later than 15 minutes from the time of receiving the electronic tax declaration dossier of the taxpayer.

+ The tax authorities process the taxpayer's tax declaration dossier as per the tax management law and its guiding documents, sending either an acceptance or rejection notice to the electronic portal selected by the taxpayer no later than 01 working day from the date stated in the receipt notification of the electronic tax declaration dossier.

What are the methods for declaring the environmental protection tax by taxpayers in Vietnam?

Under Sub-item 21, Section 2 of administrative procedures issued with Decision No. 1462/QD-BTC in 2022, taxpayers can declare the environmental protection tax in 3 ways:

- Submit directly at the tax authority's office.

- Or send through the postal system.

- Or send electronic dossiers to the tax authority through electronic transactions (the electronic portal of the General Department of Taxation/Government Portal or T-VAN service providers).