How to handle the case where the trader has disappeared and the customs authority is not able to determine the tax payable in Vietnam?

How to handle the case where the trader has disappeared and the customs authority is not able to determine the tax payable in Vietnam?

Based on point b, clause 4, Article 60 of Circular 38/2015/TT-BTC amended by clause 39, Article 1 of Circular 39/2018/TT-BTC regarding the report on the settlement of the use of imported raw materials, supplies, and exported goods as follows:

Report on the settlement of the use of imported raw materials, supplies, and exported goods

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4. Handling overdue submission of reports on the settlement of the use of raw materials, supplies, machinery, equipment, and exported goods

b) Measures to be taken after urging, investigating, verifying, and tracking:

b.1) For organizations and individuals who do not report on the settlement of the use of raw materials, supplies, machinery, and equipment but continue to operate, the customs authority shall establish a violation record to handle according to regulations and transfer information for post-clearance inspection and specialized inspection;

b.2) For organizations and individuals that have absconded or are missing and the customs authority does not have actual norms to determine the tax amount, the actual norms for similar goods of other organizations and individuals shall be used. After determining the tax amount, complete the dossier and transfer all documents to the competent authority to investigate smuggling and tax evasion as prescribed by the Criminal Code.

Thus, in the case where the trader has disappeared and the customs authority are not able to determine the tax payable, the customs authority will use the actual norms for similar goods of other organizations and individuals to calculate the tax.

Moreover, after determining the tax amount, the dossier should be completed and the entire dossier forwarded to the competent authority to investigate smuggling and tax evasion as prescribed by the Criminal Code.

How to handle the case where the trader has disappeared and the customs authority is not able to determine the tax payable in Vietnam? (Image from the Internet)

What is the basis for calculating proportional duties on exports in Vietnam?

According to Article 5 of the Law on Export and Import Duties 2016, the basis for calculating proportional duties on exports is regulated as follows:

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

- The tax rate for export goods is specifically stipulated for each item in the export tariff.

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

What is the method for calculating proportional duties on exports in Vietnam?

Based on clause 2, Article 37 of Circular 38/2015/TT-BTC, the method for calculating proportional duties on exports is regulated as follows:

- The determination of the export duty payable on goods applying the percentage tax rate is based on the quantity of each exported item actually recorded in the customs declaration, taxable value, tax rate of each item, and is performed according to the following formula:

In the case of goods being crude oil, natural gas, the determination of export duty payable is conducted according to separate guidance from the Ministry of Finance on taxes for organizations and individuals engaged in oil and gas exploration, and extraction activities as prescribed by the Petroleum Law;

- If the actual export quantity of goods differs from the commercial invoice due to the nature of the goods, in accordance with the delivery and payment terms of the sales contract, the export duty payable is determined based on the actual payment value for the exported goods and the tax rate of each item.

What entities are subject to export duty in Vietnam?

According to Article 2 of the Law on Export and Import Duties 2016, the entities subject to export duty are regulated as follows:

- Goods exported through Vietnam's border gates and borders.

- Goods exported from the domestic market into non-tariff zones.

- Goods exported, imported domestically, and goods exported, imported by enterprises exercising the right to export, the right to import, the right to distribute.

- Additionally, export duty does not apply to the following cases:

+ Transit goods, transshipped goods, transferred goods;

+ Goods provided as humanitarian aid, non-refundable aid;

+ Goods exported from non-tariff zones to foreign countries; goods transferred from one non-tariff zone to another non-tariff zone;

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