Is handcrafted liquor produced by households subject to excise tax in Vietnam?
Is handcrafted liquor produced by households subject to excise tax in Vietnam?
Based on Point b, Clause 1, Article 2 of the Law on Excise Tax 2008 as stipulated:
Subjects to tax
1. Goods:
a) Cigarettes, cigars, and other products made from tobacco for smoking, inhaling, chewing, sniffing, or absorbing;
b) Alcohol;
c) Beer;
d) Automobiles with fewer than 24 seats, including vehicles designed to carry both passengers and goods with more than two rows of seats and a fixed partition between passenger and goods compartments;
đ) Two-wheeled and three-wheeled motorcycles with cylinder capacity over 125cm3;
e) Aircrafts, yachts;
...
And based on Article 3 of the Law on Excise Tax 2008 as stipulated:
Non-taxable objects
Goods specified in Clause 1, Article 2 of this Law are not subject to excise tax in the following cases:
1. Goods manufactured or processed by establishments directly exported, or sold, entrusted for export to other business establishments for export;
…
Therefore, alcohol is one of the goods subject to excise tax, with no distinction between handcrafted or industrial alcohol, except for cases where alcohol is produced, processed directly for export, or sold, entrusted for other business establishments to export, which is not subject to tax.
Is handcrafted liquor produced by households subject to excise tax in Vietnam? (Image from the Internet)
Is opening a karaoke bar in rural areas in Vietnam subject to excise tax?
Based on Point b, Clause 2, Article 2 of the Law on Excise Tax 2008 as stipulated:
Subjects to tax
1. Goods:
a) Cigarettes, cigars, and other products made from tobacco for smoking, inhaling, chewing, sniffing, or absorbing;
b) Alcohol;
c) Beer;
d) Automobiles with fewer than 24 seats, including vehicles designed to carry both passengers and goods with more than two rows of seats and a fixed partition between passenger and goods compartments;
đ) Two-wheeled and three-wheeled motorcycles with cylinder capacity over 125cm3;
…
2. Services:
a) Nightclub business;
b) Massage, karaoke business;
c) Casino business; electronic games with prizes including jackpot machines, slot machines and similar types;
d) Betting business;
dd) Golf business, including selling membership cards, playing tickets;
e) Lottery business.
Thus, regarding the case of the karaoke business, this service falls under the categories subject to excise tax, and this regulation does not differentiate locations between rural and urban areas.
What are cases where goods temporarily imported and re-exported are eligible for excise tax refund in Vietnam?
Pursuant to Clause 1, Article 7 of Circular 195/2015/TT-BTC, taxpayers are eligible for refunds of the excise tax paid on goods temporarily imported and re-exported, including:
- Imported goods that have paid excise tax but remain in storage at customs and are subject to customs supervision, which are re-exported abroad.
- Imported goods that have paid excise tax for delivery or sale to foreign countries through agents in Vietnam; imported goods for sale to foreign vehicles on international routes via Vietnamese ports and Vietnamese vehicles on international routes as regulated by the Government of Vietnam.
- goods temporarily imported and re-exported under temporary import for re-export business method can receive a refund of the excise tax paid corresponding to the volume of goods re-exported.
- Imported goods that have paid excise tax but are re-exported abroad can receive a refund of the excise tax paid on the volume of goods returned to the foreign countries.
- Temporarily imported goods for fairs, exhibitions, product introductions, or other specific purposes within a limited time period that have paid excise tax and are then re-exported can receive a refund.
- Imported goods that have paid excise tax as declared, but actually imported less than declared; imported goods that got damaged or lost during import with valid reasons and have paid excise tax.
- For imported goods not meeting quality or type requirements per contracts or import licenses (due to incorrect shipment by foreign parties) verified by competent inspection authorities and acknowledged by the foreign owner, the customs will verify and adjust the excise tax payable, if there is any excess tax paid, it will be refunded, if underpaid, it must be covered in full.
In cases where goods are approved for re-export abroad, the excise tax already paid on returned goods will be refunded.
In cases of returning goods to foreign parties within a non-taxable import timeline as per policies, customs will check procedures and exempt the applicable excise tax on goods returned to foreign countries.
