How to determine basis for calculating import and export taxes in Vietnam?

How to determine basis for calculating import and export taxes in Vietnam?

Based on Article 5 of the Law on Export and Import Taxes 2016, the basis for calculating import and export taxes is regulated as follows:

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

- The tax rate for exported goods is specifically prescribed for each item in the export tariff schedule.

In the case of goods exported to countries, groups of countries, or territories that have preferential export tax agreements with Vietnam in trade relations, the execution is according to these agreements.

- The tax rate for imported goods includes preferential tax rates, special preferential tax rates, and ordinary tax rates, applied as follows:

+ Preferential tax rates apply to imported goods originating from countries, groups of countries, or territories that grant the most-favored-nation treatment in trade relations with Vietnam; goods from the non-tariff zones imported into the domestic market meeting the origin conditions from countries, groups of countries, or territories that grant the most-favored-nation treatment in trade relations with Vietnam;

+ Special preferential tax rates apply to imported goods originating from countries, groups of countries, or territories that have special preferential agreements about import taxes in trade relations with Vietnam; goods from the non-tariff zones imported into the domestic market meeting the origin conditions from countries, groups of countries, or territories that have special preferential agreements about import taxes in trade relations with Vietnam;

+ Ordinary tax rates apply to imported goods not falling under the above-mentioned cases. The ordinary tax rate is prescribed to be 150% of the preferential tax rate of the corresponding item. In cases where the preferential tax rate is 0%, the Prime Minister of the Vietnamese Government, based on Article 10 of the Law on Export and Import Taxes 2016, decides the application of the ordinary tax rate.

How to determine basis for calculating import and export taxes in Vietnam? (Image from the Internet)

What goods are subject to import and export taxes in Vietnam?

According to Article 2 of the Law on Export and Import Taxes 2016, the following are subject to import and export taxes:

- Goods exported, imported through Vietnamese border gates and borders.

- Goods exported from the domestic market into the non-tariff zones, and goods imported from the non-tariff zones into the domestic market.

- Goods exported, imported on-site, and goods exported, imported by enterprises exercising the rights of export, import, and distribution.

- The following cases are not subject to export and import taxes:

+ Goods in transit, goods for transshipment, and goods for transshipment;

+ Humanitarian aid goods, non-refundable aid goods;

+ Goods exported from non-tariff zones to overseas; goods imported from overseas into non-tariff zones and only used within such non-tariff zones; goods transferred from one non-tariff zone to another non-tariff zone;

+ The portion of crude oil used to pay resource tax to the State when exported.

Whch entities are import and export tax payers in Vietnam?

According to Article 3 of the Law on Export and Import Taxes 2016, tax payers include:

- Owners of exported and imported goods.

- Organizations entrusted with export and import.

- Individuals exiting, entering with export and import goods, sending or receiving goods through Vietnamese border gates and borders.

- Individuals authorized, guaranteed, or paying taxes on behalf of tax payers, including:

+ Customs procedure agents in case of being authorized by tax payers to pay export and import taxes;

+ Enterprises providing postal services, international express delivery services, in case of paying taxes on behalf of tax payers;

+ Credit institutions or other organizations operating under the provisions of the Law on Credit Institutions in case of guaranteeing and paying taxes on behalf of tax payers;

+ Individuals authorized by foreign depot owners in cases of gifts, personal gifts; baggage sent before or after the trip of persons exiting, entering;

+ Branches of enterprises authorized to pay taxes on behalf of enterprises;

+ Other individuals authorized to pay taxes on behalf of tax payers according to the provisions of law.

- Individuals purchasing and transporting goods within the tax exemption limits of border residents but not using them for production, consumption but selling them in the domestic market, and foreign traders permitted to do business of export, import goods at border markets under the law.

- Individuals with exported and imported goods falling under non-taxable or exempted objects but later changing to taxable objects under the law.

- Other cases as prescribed by law.