Is Mazut subject to environmental protection tax in Vietnam?

Is Mazut subject to environmental protection tax in Vietnam?

Based on the provisions of Article 3 Law on Environmental Protection Tax 2010, the subjects of tax are specifically regulated as follows:

Subjects of Tax

1. Gasoline, oil, lubricants, including:

a) Gasoline, except ethanol;

b) Jet fuel;

c) Diesel oil;

d) Kerosene;

dd) Mazut;

e) Lubricating oil;

g) Lubricating grease.

2. Coal, including:

a) Brown coal;

b) Anthracite;

c) Fat coal;

d) Other types of coal.

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

4. Taxable plastic bags.

5. Herbicides subject to restricted use.

6. Termite pesticides subject to restricted use.

7. Wood preservative chemicals subject to restricted use.

8. Warehouse disinfectants subject to restricted use.

9. In cases where the supplementation of other taxable subjects is deemed necessary, the Standing Committee of the National Assembly shall consider and regulate accordingly.

The Government of Vietnam shall detail this Article.

Thus, according to the above regulation, mazut is one of the subjects liable to environmental protection tax.

What is the environmental protection tax base for imported mazut?

Based on Article 6 Law on Environmental Protection Tax 2010, the tax base for environmental protection tax on imported goods is regulated as follows:

Tax Base

1. The tax base for environmental protection tax is the taxable volume of goods and the absolute tax rate.

2. The taxable volume of goods is regulated as follows:

a) For domestically produced goods, the taxable volume of goods is the volume of goods produced and sold, exchanged, internally consumed, or given as gifts;

b) For imported goods, the taxable volume of goods is the imported volume of goods.

3. The absolute tax rate to calculate the tax is regulated in Article 8 of this Law.

Simultaneously, Article 5 Circular 152/2011/TT-BTC also provides for the tax base for environmental protection tax applicable to imported goods as follows:

Tax Base

The tax base for environmental protection tax is the taxable volume of goods and the absolute tax rate.

1. The taxable volume of goods is regulated as follows:

1.1. For domestically produced goods, the taxable volume of goods is the volume of goods produced and sold, exchanged, internally consumed, given as gifts, promotional, or advertising.

1.2. For imported goods, the taxable volume of goods is the imported volume of goods.

In cases where the taxable volume of goods exported, sold, and imported is calculated in units of measure different from the tax calculation unit specified in the Environmental Protection Tax Table issued by the Standing Committee of the National Assembly, it shall be converted to the tax calculation unit specified in the Environmental Protection Tax Table for tax calculation.

1.3. For composite fuels containing petroleum-based gasoline, oil, lubricants, and biofuels, the taxable volume of goods in the period is the volume of petroleum-based gasoline, oil, lubricants in the composite fuel imported or produced and sold, exchanged, given, or used internally, converted into the tax calculation unit of the corresponding goods. The determination methods are as follows:

...

Thus, for imported mazut, the tax base for environmental protection tax is the imported volume of goods.

Note: For cases where the taxable volume of goods exported, sold, and imported is calculated in units of measure different from the tax calculation unit specified in the Environmental Protection Tax Table issued by the Standing Committee of the National Assembly, it shall be converted to the tax calculation unit specified in the Environmental Protection Tax Table for tax calculation.

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

How to determine the environmental protection tax amount for imported mazut in Vietnam?

Based on Clause 1, Article 8 Law on Environmental Protection Tax 2010, the tax rates applicable to mazut are regulated as follows:

The environmental protection tax amount applicable to imported mazut is 300 VND/unit of goods to 2,000 VND/unit of goods.

Simultaneously, according to Article 4 Circular 152/2011/TT-BTC, the environmental protection tax amount payable when dealing in mazut is determined by the following formula:

Thus, the environmental protection tax amount when importing mazut is determined according to the formula above.

When is the environmental protection tax applicable for imported mazut in Vietnam?

The time for tax calculation is regulated in Article 9 Law on Environmental Protection Tax 2010 as follows:

Time for Tax Calculation

1. For domestically produced goods sold, exchanged, given as gifts, the time for tax calculation is the time of transfer of ownership or usage rights of goods.

2. For domestically produced goods brought into internal consumption, the time for tax calculation is the time when the goods are brought into use.

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

4. For gasoline, oil produced or imported for sale, the time for tax calculation is the time when the wholesaler sells the gasoline or oil.

Thus, for imported mazut, the time for tax calculation is from the time of customs declaration registration.