In which cases does the customs authority in Vietnam impose tax on import and export goods?

In which cases does the customs authority in Vietnam impose tax on import and export goods?

Pursuant to Clause 1, Article 52 of the 2019 Law on Tax Administration regulating cases in which customs authorities impose taxes on exported and imported goods as follows:

- Customs authorities impose taxes on exported and imported goods in the following cases:

+ Taxpayers rely on illegal documents to declare and calculate tax; do not declare tax, or inaccurately and incompletely declare the contents related to the determination of tax obligations.

+ After the prescribed deadline, taxpayers do not provide, refuse to provide, or delay and prolong the provision of records, accounting books, documents, certificates, data, and information related to accurately determining the payable tax amount as prescribed.

+ Taxpayers cannot prove or explain, or after the prescribed deadline cannot explain contents related to the determination of tax obligations as prescribed by law; do not comply with the inspection or audit decisions of customs authorities.

+ Taxpayers do not reflect or inaccurately, incompletely, and untruthfully reflect data in accounting books to determine tax obligations.

+ Customs authorities have sufficient evidence and grounds to determine that the declared value does not match the actual transaction value.

+ The transaction is not consistent with the economic nature or the actual incurred nature, affecting the payable tax amount.

+ Taxpayers cannot calculate the payable tax amount by themselves.

+ Other cases discovered by customs authorities or other agencies where the tax declaration and calculation do not comply with the regulations of the law.

Additionally, the imposition of taxes on exported and imported goods is further detailed in Clause 4, Article 17 of Decree 126/2020/ND-CP, where tax imposition on exported and imported goods is carried out in such cases:

- Customs authorities impose taxes in the cases specified in Clause 1, Article 52 of the 2019 Law on Tax Administration. To be specific:

[1] Taxpayers use illegal documents in customs records, records for tax exemption, reduction, refund, or non-collection of tax to declare and calculate tax.

[2] Taxpayers do not declare or inaccurately and incompletely declare contents related to determining tax obligations; incorrectly declare the subjects exempted from tax, reduced tax, refunded tax, non-collection of tax; after the prescribed deadline, taxpayers do not report or inaccurately report data to customs authorities; after the prescribed deadline, taxpayers do not submit supplementary tax declarations as required by customs authorities or submit, but the supplementary tax declarations do not fully and accurately contain grounds for tax calculation to determine the payable tax amount.

[3] After the prescribed deadline, taxpayers do not provide, refuse to provide, or delay and prolong the provision of records, accounting books, documents, certificates, data, and information related to accurately determining the payable tax amount, exempted tax, reduced tax, refunded tax, non-collection of tax.

[4] Taxpayers cannot prove or explain, or after the prescribed deadline cannot prove or explain contents related to determining tax obligations as prescribed by law.

[5] Taxpayers do not comply with tax inspection decisions, post-clearance audit decisions within 10 working days from the date of receiving the decision, do not comply with tax audit decisions within 15 days from the date of announcement of the decision, and customs authorities have enough grounds to impose taxes, except for cases where the tax inspection, post-clearance audit, and tax audit periods are extended.

[6] Taxpayers do not reflect or incompletely, untruthfully, and inaccurately reflect data in accounting books to determine tax obligations.

[7] Customs authorities have sufficient evidence and grounds to determine the declared value does not match the actual transaction value.

[8] The transaction is not consistent with the economic nature or the actual incurred nature, affecting the payable tax amount.

[9] Taxpayers cannot calculate the payable tax amount by themselves.

[10] Imported goods are subject to tax exemption or non-collection, but taxpayers arbitrarily change the purpose of use or transfer to domestic consumption without declaring and paying tax on a new customs declaration as prescribed by law; goods are raw materials and components imported for production and special investment preference projects or projects investing in regions with exceptionally difficult socio-economic conditions that exceed the 5-year tax exemption period from the start date of production, but taxpayers do not declare and pay tax; domestically exported and imported goods not conforming to tax law, customs law, or commercial law.

In cases where imported raw materials and components for processing, production for export have negative or positive differences compared to the figures reported to customs authorities, and customs authorities have identified the cause of the negative or positive difference, they will impose taxes based on the violation and impose taxes on the entire difference, including both negative and positive differences.

In cases where imported raw materials and components have a negative or positive difference compared to the reported figures but customs authorities cannot determine the cause of the difference or the violation, customs authorities will only impose taxes on the negative difference in raw materials and components.

For positive differences in raw materials and components that enterprises still correctly use for processing and production for export, customs authorities will not impose taxes on these. Enterprises must continue to monitor and manage imported raw materials and components for processing and production for export as if they were initially imported raw materials and components until all products are exported.

For domestic enterprises processing and producing goods with a positive difference in raw materials, materials at the end of the processing contract period, the processing party has already settled the contract with the contractor, the enterprise must re-export or declare and pay tax on the positive difference in raw materials, unless the enterprise transfers the positive difference in raw materials, materials to execute another processing contract.

If enterprises do not declare and pay tax on the positive difference in raw materials, materials, customs authorities will impose taxes on this positive difference.

[11] Imported goods that have not completed customs procedures are attached to be auctioned according to the decision of the competent authority or the judgment, decision of the Court, and are subject to tax; customs authorities will impose taxes to determine the payable tax amount and notify the auction-earning authority or organization to pay taxes, except for confiscated goods to be auctioned belonging to State ownership.

[12] Imported goods exempt from tax, not subject to tax, but taxpayers pledge, mortgage them as security for loans; in case credit institutions have to handle the pledged, mortgaged property according to the law to recover debts but taxpayers have not declared new customs declarations and paid taxes according to the customs law.

[13] Exported and imported goods in other cases detected by customs authorities or inspection, audit agencies during inspections and audits at the taxpayer's office or customs authority, according to the provisions of Point b, Clause 2, Article 21, Point b, Clause 2, Article 22 of the 2019 Law on Tax Administration found that taxpayers did not declare or incorrectly declared, calculated, or determined tax amounts exempted, reduced, refunded, non-collectible, or determined non-taxable subjects not conformable with the law.

In which cases does the customs authority in Vietnam impose tax on import and export goods?​ (Image from the Internet)

What is the responsibility if taxpayers disagree with the imposed tax amount in vietnam?

Pursuant to Article 54 of the 2019 Law on Tax Administration regulating the responsibility of taxpayers in paying the imposed tax amount:

Responsibility of taxpayers in paying the imposed tax amount

Taxpayers must pay the imposed tax amount according to the tax handling decision of tax administration agencies; if disagreeing with the imposed tax amount by tax administration agencies, taxpayers must still pay that tax amount while having the right to request tax administration agencies for an explanation or to lodge a complaint, initiate a lawsuit regarding the tax imposition. Taxpayers are responsible for providing records and documents to prove the complaint or lawsuit.

Thus, according to the above regulations, if taxpayers disagree with the imposed tax amount, they must still pay that tax amount, while having the right to request tax administration agencies for an explanation or lodge a complaint, initiate a lawsuit regarding the tax imposition.

Taxpayers are responsible for providing records and documents to prove the complaint or lawsuit.

What are the 4 responsibilities of tax authorities in tax imposition in Vietnam?

Pursuant to Article 53 of the 2019 Law on Tax Administration, the 4 responsibilities of tax authorities in tax imposition currently are as follows:

[1] Tax administration agencies must notify taxpayers in writing about the reasons for tax imposition, the basis for tax imposition, the imposed tax amount, and the tax payment deadline.

[2] In cases where tax administration agencies impose taxes through tax inspection and tax audit, the reasons for tax imposition, the basis for tax imposition, the imposed tax amount, and the tax payment deadline must be recorded in the tax inspection and audit records or the tax handling decision of tax administration agencies.

[3] If the imposed tax amount by tax administration agencies is larger than the payable tax amount according to the complaint resolution decision of the competent agency or the judgment, decision of the Court, the tax administration agencies must refund the excess tax paid.

[4] If the imposed tax amount by tax administration agencies is smaller than the payable tax amount according to the complaint resolution decision of the competent agency or the judgment, decision of the Court, taxpayers must pay the additional amount. Tax administration agencies are responsible for the tax imposition handling.