Is kerosene subject to environmental protection tax in Vietnam?

Is kerosene subject to environmental protection tax in Vietnam?

Pursuant to Article 3 Law on Environmental Protection Tax 2010. To be specific:

Taxable objects

1. Petrol, oil, and lubricants, including:

a) Petrol, except ethanol;

b) Jet fuel;

c) Diesel oil;

d) Kerosene;

dd) Mazut oil;

e) Lubricants;

g) Grease.

2. Coal, including:

a) Brown coal;

b) Anthracite coal;

c) Fat coal;

d) Other types of coal.

3. Hydro-chloro-fluoro-carbon (HCFC) solution.

4. Plastic bags subject to tax.

5. Herbicides restricted from use.

6. Anti-termite chemicals restricted from use.

7. Wood preservatives restricted from use.

8. Fumigants restricted from use.

9. In cases where it is necessary to add other taxable objects to suit each period, the Standing Committee of the National Assembly shall consider and decide.

the Government of Vietnam shall detail this Article.

Additionally, in Article 4 of Circular 152/2011/TT-BTC, the environmental protection tax payable when trading Kerosene is determined according to the following formula:

Additionally, in Clause 1, Article 8 of the Law on Environmental Protection Tax 2010, the fixed tax rate applied to Kerosene is specified as follows:

Hence, according to the above regulation, kerosene is one of the types of oil subject to environmental protection tax.

Additionally, the fixed tax rate applied to Kerosene is from 300 dong/unit of goods to 2,000 dong/unit of goods.

Is kerosene subject to environmental protection tax in Vietnam? (Image from the Internet)

When is the time for calculating environmental protection tax on kerosene in Vietnam?

Pursuant to Article 9 of the Law on Environmental Protection Tax 2010, the timing for calculating environmental protection tax on Kerosene is specified as follows:

Tax time

1. For produced goods sold, exchanged, or given as gifts, the tax time is the time of transfer of ownership or right to use the goods.

2. For produced goods put into internal use, the tax time is the time the goods are put to use.

3. For imported goods, the tax time is the time of customs declaration registration.

4. For petrol and oil produced or imported for sale, the tax time is the time the oil and petrol trading enterprises sell them.

Thus, depending on the purpose, the time for calculating the environmental protection tax on Kerosene is determined differently. To be specific:

- In the case of produced Kerosene sold, exchanged, or given as a gift, the tax time is the time of transfer of ownership or right to use the goods.

- In the case of Kerosene put into internal use, the tax time is the time the goods are put to use.

- In the case of imported Kerosene, the tax time is the time of customs declaration registration.

- In the case of Kerosene produced or imported for sale, the tax time is the time the oil and petrol trading enterprises sell it.

What is the form for the environmental protection tax declaration when trading kerosene in Vietnam?

The form for the Environmental Protection Tax declaration applied when trading Kerosene is specified in Clause 3, Article 16 of Circular 80/2021/TT-BTC. To be specific:

Tax declaration, calculation, allocation, and payment of environmental protection tax

...

3. Tax declaration and payment:

a) For petrol and oil:

The dependent units of major trading enterprises or dependent units of subsidiaries of major trading enterprises operating in a province or city different from where the major trading enterprise or its subsidiary is headquartered, without separate accounting for environmental protection tax, the major trading enterprise or its subsidiary shall declare the environmental protection tax and submit the tax declaration form according to form 01/TBVMT, appendix of the allocation table of environmental protection tax payable to localities where they derive revenue from oil and petrol according to form 01-2/TBVMT issued together with Appendix II of this Circular to the direct tax authority; pay the allocated tax amount to the province where the dependent unit is headquartered as specified in Clause 4, Article 12 of this Circular.

b) For domestically mined and consumed coal:

Companies engaged in mining and domestic consumption of coal through management and assignment to subsidiaries or dependent units for mining, processing, and consumption, the unit responsible for coal consumption shall declare the environmental protection tax for the entire tax amount arising from mined coal and submit the tax declaration form according to form 01/TBVMT, appendix of the table determining the environmental protection tax payable to localities where they derive revenue from coal according to form 01-1/TBVMT issued together with Appendix II of this Circular to the direct tax authority; pay the allocated tax amount to the province where the coal mining company is headquartered as specified in Clause 4, Article 12 of this Circular.

Thus, according to the above regulation, the form is No. 01/TBVMT issued together with Circular 80/2021/TT-BTC. (Download)