Shall border residents pay import-export duty for goods traded across the border of Vietnam?

Shall border residents pay import-export duty for goods traded across the border of Vietnam?

Based on Article 16 of the Law on export and import duties 2016, exemptions from import-export duty are regulated as follows:

Tax Exemption

1. Exported and imported goods of organizations and individuals from foreign countries enjoying privileges and immunities in Vietnam within the limits appropriate to the international treaties to which the Socialist Republic of Vietnam is a signatory; goods within the duty-free luggage allowance of persons on exit and entry; goods imported for sale at duty-free shops.

2. Movable assets, gifts within the limits of foreign organizations and individuals to Vietnamese organizations and individuals or vice versa.

Movable assets, gifts exceeding the duty-free allowance must pay tax on the excess part, except in cases where the recipient unit is an agency, organization funded by the state budget and authorized to receive or in the case of humanitarian or charitable purposes.

3. Goods traded and exchanged across the border by border residents included in the list of goods and within the limits for production and consumption by border residents.

In cases where the purchase and transport of goods are within the limits but not used for production and consumption by border residents, and the exported and imported goods of foreign traders allowed to trade at border markets, tax must be paid.

4. Goods exempt from export tax, import tax according to international treaties to which the Socialist Republic of Vietnam is a signatory.

5. Goods with a value or tax amount payable below the minimum.

6. Imported raw materials, supplies, components for processing export products; imported finished products for attachment to processed products; exported processed products.

Exported processed products made from domestic raw materials, supplies subject to export tax do not qualify for tax exemption related to the value of domestic raw materials and supplies constituting the exported products.

Goods exported for processing and subsequently imported are exempt from export and import duties on the value of exported materials constituting the processed products. However, goods exported for processing and subsequently imported, including resources, minerals, and products with a total value of resources, minerals plus energy costs accounting for 51% or more of the product cost, do not qualify for tax exemption.

7. Imported raw materials, supplies, components for producing export goods.

8. Goods produced, processed, recycled, assembled in a non-tariff zone not using imported raw materials, components from abroad when imported into the domestic market.

9. Goods temporarily imported, re-exported or temporarily exported, re-imported within a fixed period, including:

a) Goods temporarily imported, re-exported, temporarily exported, re-imported for organizing or attending fairs, exhibitions, product introductions, sporting, cultural, artistic events, or other events; machinery, equipment temporarily imported, re-exported for testing, research, product development; machinery, equipment, professional tools temporarily imported, re-exported, temporarily exported, re-imported for work within a certain period or for processing for foreign traders, except machinery, equipment, tools, means of transportation of organizations and individuals permitted to temporarily import, re-export for executing investment projects, construction, installation, production;

b) Machinery, equipment, components, spare parts temporarily imported for replacement, repair of foreign ships, aircraft, or temporarily exported for replacement, repair of Vietnamese ships, aircraft abroad; goods temporarily imported, re-exported for supply to ships, aircraft docked at Vietnamese ports;

c) Goods temporarily imported, re-exported or temporarily exported, re-imported for warranty, repair, replacement;

d) Rotating equipment under the temporary import, re-export or temporary export, re-import method for containing export and import goods;

đ) Goods traded temporarily imported, re-exported within the temporary import, re-export period (including extension period) with credit institution guarantees or a deposit equivalent to the import tax of the temporarily imported, re-exported goods.

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Thus, according to the regulations, border residents goods traded across the border are exempt from import-export duty if the goods fall under the List of Goods for Production and Consumption by border residents published by the Ministry of Industry and Trade and are within the limits for production and consumption by border residents.

What is the tax exemption application for goods traded by Vietnamese border residents?

Based on Clause 3 Article 9 of Decree 134/2016/ND-CP, amended by Clause 2 Article 10 of Decree 104/2022/ND-CP, the tax exemption application is regulated as follows:

- Customs dossiers as stipulated by customs law;

- The taxpayer provides personal identification number information or presents a border laissez-passer or presents a Citizen Identification Card.

Shall Vietnamese border residents pay taxes for purchasing goods traded across the border of Vietnam?

Based on Clause 1 Article 9 of Decree 134/2016/ND-CP, the regulation is as follows:

Tax Exemption for Goods Traded and Exchanged by border residents

1. Goods traded and exchanged by border residents included in the List of Goods for Production and Consumption by border residents published by the Ministry of Industry and Trade within the limits stipulated in Appendix V of this Decree are exempt from tax as per Clause 3 Article 16 of the Law on export and import duties 2016.

In cases where goods are purchased and transported within the limits but not used for production and consumption by border residents, a declaration and tax payment are required as stipulated.

2. Exported and imported goods of traders from countries sharing a foreign border permitted to trade at border markets must pay export and import duties as regulated.

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Thus, goods traded and exchanged by border residents included in the List of Goods for Production and Consumption by border residents published by the Ministry of Industry and Trade within the limits stipulated in Appendix V of Decree 134/2016/ND-CP are exempt from import-export duty.

However, in cases where goods purchased across the border within the limits are not used for production and consumption by border residents, a declaration and import-export duty payment are required.