Is petroleum used as severance tax paid to the State upon its exportation subject to export-import tax in Vietnam?

Is petroleum used as severance tax paid to the State upon its exportation subject to export-import tax in Vietnam?

According to Article 2 of the Law on Export and Import Tax 2016 stipulating the objects subject to export and import tax:

- Goods exported, imported via Vietnamese border gates and borders.

- Goods exported from the domestic market into the non-tariff zone and goods imported from the non-tariff zone into the domestic market.

- Goods exported, imported on the spot and goods exported, imported by enterprises exercising export, import, and distribution rights.

- Objects subject to export and import tax do not apply to the following cases:

+ Goods in transit, transshipment, and transshipment;

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

+ Goods exported from the non-tariff zone to overseas; goods imported from overseas into the non-tariff zone and exclusively used within the non-tariff zone; goods transferred from one non-tariff zone to another non-tariff zone;

+ The portion of petroleum used as severance tax paid to the State upon its exportation.

- The Government of Vietnam shall provide detailed regulations on this Article.

Thus, aligning the above provision, petroleum used as severance tax paid to the State upon its exportation is not one of the objects subject to export and import tax.

Is petroleum used as severance tax paid to the State upon its exportation subject to export-import tax in Vietnam? (Image from the Internet)

When is the taxation time for petroleum used as severance tax paid to the State upon its exportation in Vietnam?

According to clause 2, Article 8 of the Law on Export and Import Tax 2016 stipulating:

Tax value, tax calculation time

1. The taxable value for export and import taxes is the customs value stipulated by the Customs Law.

2. The time of tax calculation for export and import taxes is the time of customs declaration registration.

For goods exported, imported that are not subject to tax, exempt from export and import tax, or apply tariff quota rates and absolute tax rates but are altered in terms of tax policy according to the law, the tax calculation time is the time of new customs declaration registration.

The time of customs declaration registration shall be implemented according to the law on customs.

Thus, according to the regulation, the time of tax calculation for petroleum used as severance tax paid to the State upon its exportation is the time of customs declaration registration.

When is the tax payment deadline for petroleum used as severance tax paid to the State upon its exportation in Vietnam?

According to Article 9 of the Law on Export and Import Tax 2016, stipulating:

Tax payment deadline

1. Goods exported, imported that are subject to tax must pay tax before customs clearance or release of goods according to the Customs Law, except for the cases stipulated in clause 2 of this Article.

If credit institutions guarantee the tax amount payable, customs clearance or release of goods is allowed, but late-payment interest must be paid according to the Law on Tax Administration from the date of customs clearance or release to the date of tax payment. The maximum guarantee period is 30 days from the date of customs declaration registration.

If the tax is guaranteed by the credit institution but the guarantee period expires and the taxpayer has not paid the tax and late-payment interest, the guaranteeing organization shall be responsible for paying the outstanding tax and late-payment interest for the taxpayer.

2. Taxpayers who are granted priority status according to the Customs Law shall be allowed to pay tax for the customs declarations that have been cleared or released in the month no later than the 10th day of the following month. If the deadline is missed, the taxpayer must fully pay the overdue tax and late-payment interest according to the Law on Tax Administration.

Thus, the tax payment deadline for petroleum used as severance tax paid to the State upon its exportation is before customs clearance or release of goods, except for cases where the taxpayer is granted priority status.

Who is the taxpayer for petroleum used as severance tax paid to the State upon its exportation in Vietnam?

According to Article 3 of the Law on Export and Import Tax 2016, stipulating:

Taxpayer

1. Owner of exported or imported goods.

2. Organization authorized to export, import.

3. Individual exiting or entering Vietnam with exported or imported goods or sending or receiving goods via Vietnamese border gates and borders.

4. Person authorized to act as a guarantor and pay taxes on behalf of the taxpayer, including:

a) Customs agent in case authorized by the taxpayer to pay export and import tax;

b) Postal service or international express delivery service enterprise in case of paying tax on behalf of the taxpayer;

c) Credit institutions or other organizations operating under the Law on Credit Institutions in case of guaranteeing and paying tax on behalf of the taxpayer;

d) Person authorized by the goods owner in case the goods are gifts, presents of individuals; luggage sent before or after the trip of persons exiting or entering Vietnam;

đ) Branch of the enterprise authorized to pay tax on behalf of the enterprise;

e) Other persons authorized to pay tax on behalf of the taxpayer according to the law.

5. Person purchasing or transporting goods within the tax-free allowance of border residents but not used for production, consumption, and sold in the domestic market; foreign traders authorized to trade goods exported, imported at border markets according to the law.

6. Person having exported or imported goods not subject to tax, exempt from tax but later subject to tax according to the law.

7. Other cases according to the law.

Thus, the taxpayer for petroleum used as severance tax paid to the State upon its exportation is the owner of the exported or imported goods.