Is the customs value of goods used for tax calculation in Vietnam?

Is the customs value of goods used for tax calculation in Vietnam?

Pursuant to Clause 24, Article 4 of the Customs Law 2014, regulations are as follows:

Explanation of Terms

In this Law, the following terms are understood as:

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11. Customs control is a measure of patrolling, investigating, verifying, or other professional methods applied by the customs authority to prevent and counteract smuggling, illegal transportation of goods across borders, and other customs law violations.

12. Customs inspection is the act by the customs authority of checking customs documents, related documents and inspecting actual goods and means of transportation.

13. Customs territory includes areas within the territory, exclusive economic zones, continental shelf of the Socialist Republic of Vietnam where the Customs Law is applied.

14. Customs declarant includes: the owner of the goods; the owner of the means of transport; the operator of the means of transport; the customs brokerage, or other individuals authorized by the owner of the goods or means of transport to conduct customs procedures.

15. Customs sealing is the use of technical tools or markers to identify and ensure the integrity of goods.

16. Goods classification is the process based on characteristics, composition, structure, physical and chemical properties, uses, packaging standards, and other attributes to determine the name and code of goods according to the Vietnam export, import goods nomenclature.

17. Means of transportation include road, rail, air, sea, and inland waterway transportation entering, leaving, or transiting.

18. Risk management is the application by the customs authority of a system of measures and professional procedures to identify, assess, and classify risk levels, serving as a basis for arranging resources appropriately to inspect, supervise, and support other customs professional operations effectively.

19. Risk is a threat of non-compliance with customs legislation in executing export, import, transit of goods; entering, leaving, or transiting means of transportation.

20. Migratory property is the belongings, items used in personal, family, or organizational activities, brought along when ceasing residency or ending activities in Vietnam or abroad.

21. Clearance is the completion of customs procedures for goods to be imported, exported, or placed under other customs management policies.

22. Customs information is the information, data about export, import activities, entry, exit, transit; organizations, individuals participating in export, import, entry, exit, transit, and other related customs activity information.

23. Customs procedures are the tasks that the customs declarant and customs officer must perform according to this Law’s provisions regarding goods or means of transport.

24. Customs value is the value of exported and imported goods serving the purpose of tax calculation and customs statistics.

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Thus, according to the regulation above, the customs value of goods is used for the purpose of tax calculation.

Is the customs value of goods used for tax calculation in Vietnam? (Image from the Internet)

What are the principles for determining customs value for taxable imported goods in Vietnam?

Based on Clause 1, Article 5 of Circular 39/2015/TT-BTC as amended by Clause 4, Article 1 of Circular 60/2019/TT-BTC, the regulations are as follows:

Principles and methods for determining customs value for imported goods

1. Principles:

a) The customs value of imported goods is the actual price payable at the first entry point determined by sequentially applying methods from points a to e of Clause 2 of this Article and stopping at the method that determines the customs value;

b) If the customs declarant proposes in writing, the sequence of applying the deduction value method and the computed value method can be interchangeable;

c) The determination of customs value must be based on documents, materials, objective and quantifiable data.

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Thus, according to the above regulation, there are three principles for determining customs value as follows:

Principle 1: The customs value of imported goods is the actual price payable at the first entry point determined by sequentially applying methods from points a to e of Clause 2 of this Article and stopping at the method that determines the customs value;

Principle 2: If the customs declarant proposes in writing, the sequence of applying the deduction value method and the computed value method can be interchangeable;

Principle 3: The determination of customs value must be based on documents, materials, objective, and quantifiable data.

What are the 6 methods for determining customs value for imported goods in Vietnam?

According to Clause 2, Article 5 of Circular 39/2015/TT-BTC as amended by Clause 4, Article 1 of Circular 60/2019/TT-BTC, there are six methods to determine the customs value of imported goods as follows:

Method 1: Transaction value method of imported goods;

Method 2: Transaction value method of identical imported goods;

Method 3: Transaction value method of similar imported goods;

Method 4: Deductive value method;

Method 5: Computed value method;

Method 6: Reasoned method.