Is trading in votive objects eligible for a excise tax refund in Vietnam?

Is votive objects subject to excise tax in Vietnam?

Based on the provisions of Clause 1, Article 2 of Decree 108/2015/ND-CP regarding objects subject to excise tax as follows:

Taxable Objects

1. Objects subject to excise tax are regulated according to Article 2 of the Law on excise tax and Clause 1, Article 1 of the Law amending and supplementing certain articles of the Law on excise tax.

a) For aircraft, yachts specified at Point e, Clause 1, Article 2 of the Law on excise tax, it is applicable for civil purposes.

b) For votive goods specified at Point k, Clause 1, Article 2 of the Law on excise tax, it does not include votive goods that are children's toys or educational equipment.

c) For gambling business activities specified at Point d, Clause 2, Article 2 of the Law on excise tax, including sports betting, entertainment betting, and other forms of betting as prescribed by law.

2. Objects subject to excise tax regarding goods specified at Clause 1, Article 2 of the Law on excise tax are complete goods, excluding component kits for assembling these goods.

Referring to the regulation at Point k, Clause 1, Article 2 of the Law on excise tax 2008, votive objects are goods subject to excise tax.

Thus, trading in votive objects must pay excise tax, excluding votive goods that are children's toys or educational equipment.

What is the excise tax rate on votive objects in Vietnam?

Based on the regulations at Clause 1, Section 1 of the excise tax Schedule stipulated in Article 7 of the Law on excise tax 2008 (amended by Clause 4, Article 1 of the Amended Law on excise tax 2014), the excise tax rate when trading in votive objects is 70%.

Trading in votive objects in Vietnam (Image from the Internet)

Is trading in votive objects eligible for a excise tax refund in Vietnam?

The excise tax refund is implemented according to the provisions of Article 8 of the Law on excise tax 2008 as guided by Article 6 of Decree 108/2015/ND-CP (Clause 3, Article 6 amended by Clause 2, Article 1 of Decree 14/2019/ND-CP), including the following cases:

(1) For temporarily imported, re-exported goods including:

- Imported goods that have paid excise tax but are stored in warehouses, bonded warehouses at border gates and are under customs supervision, and are re-exported abroad;

- Imported goods that have paid excise tax for delivery, sale to foreign entities through agents in Vietnam; imported goods sold to foreign carriers on routes through Vietnamese ports or Vietnamese carriers on international routes as regulated by law;

- Temporarily imported goods for re-export under the method of temporary import, re-export business when re-exporting goods shall be refunded the corresponding amount of excise tax for the actual re-exported goods;

- Imported goods that have paid excise tax but are re-exported abroad shall be refunded the corresponding amount of excise tax for the exported goods returned to foreign countries;

- Temporarily imported goods for exhibitions, trade fairs, product introduction, or other purposes within a certain period as regulated by law and have paid excise tax, when re-exported, shall be refunded the tax.

In the case of temporarily imported goods for re-export, if the actual re-export is completed within the tax payment deadline as prescribed by export and import tax law, there is no requirement to pay excise tax corresponding to the actual re-exported goods.

(2) Goods that are raw materials imported for the production and processing of export goods shall be refunded the amount of excise tax paid corresponding to the raw materials used to produce the actual exported goods.

(3) Production, business entities settle taxes when merging, splitting, dissolving, bankrupting, changing ownership form, assigning, selling, contracting, or leasing state enterprises with an overpaid amount of excise tax.

(5) Tax refund according to the decision of the competent authority as prescribed by law;

(6) Tax refund according to international treaties to which the Socialist Republic of Vietnam is a member;

(7) Tax refund in case the amount of excise tax paid exceeds the excise tax amount payable as prescribed by law.

If the taxpayer of votive goods, paper replicas falls into any of the above-mentioned cases, a refund of the paid tax may be granted.