Vietnam: What is the export taxable value?

What is the export taxable value?

Based on Clause 1, Article 8 of the 2016 Law on Export and Import Duties which stipulates the taxable value and time for tax calculation as follows:

Taxable value, time for tax calculation

1. The export and import taxable value is the customs value as prescribed by the Law on Customs.

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Accordingly, in Clause 24, Article 4 of the 2014 Law on Customs, it is stipulated as follows:

Interpretation of Terms

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20. Personal effects are items, goods used for living and working by individuals, families, organizations brought along when they stop residing or cease activities in Vietnam or abroad.

21. Customs clearance is the completion of customs procedures for goods being imported, exported, or placed under other customs operational management policies.

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

23. Customs procedures are the tasks that the customs declarant and customs officials must perform as per this Law for goods and transportation means.

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

25. Items on transportation means include: assets used on the transportation means; raw materials, fuels serving the operation of the transportation means; food, foodstuffs, and other items directly serving the living of employees and passengers on the transportation means.

26. Advanced determination of the code, origin, and customs value is when the customs authority determines the code, origin, and customs value of goods before customs procedures are carried out.

Thus, the export taxable value is the value of exported and imported goods serving the purpose of tax calculation and customs statistics.

What is the export taxable value in Vietnam? (Image from the Internet)

When is the time for export tax calculation in Vietnam?

Based on Clause 2, Article 8 of the 2016 Law on Export and Import Duties, it stipulates as follows:

Taxable value, time for tax calculation

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2. The timing of export and import tax calculation is the time of registering the customs declaration.

For goods exported, imported that are not subject to tax, exempt from export and import duties, or applying tariff quotas but change to a new tax exemption status, tariff rate, or absolute tax rate according to the law, the time for tax calculation is the time of registering the new customs declaration.

The time of registering the customs declaration is done according to the provisions of the customs law.

Vietnam: How to determine amount of export duty applying proportional duty?

Based on Article 5 of the 2016 Law on Export and Import Duties, the law stipulates as follows:

Basis for calculation of proportional duties

1. The export and import duty is determined based on the taxable value and the tax rate based on the percentage (%) of each item at the time of tax calculation.

2. The tax rate for export goods is specified for each item in the export tariff.

In cases where goods are exported to countries, groups of countries, or territories with preferential tax agreements, the export tax relations with Vietnam shall follow these agreements.

3. The tax rate for import goods includes preferential tax, special preferential tax, and ordinary tax, and is applied as follows:

a) The preferential tax rate applies to imported goods originating from countries, groups of countries, or territories practicing most-favored-nation treatment in trade relations with Vietnam; goods from non-tax zones imported into the domestic market satisfy the origin conditions from countries, groups of countries, or territories practicing most-favored-nation treatment in trade relations with Vietnam;

b) The special preferential tax rate applies to imported goods originating from countries, groups of countries, or territories with special preferential tax agreements in trade relations with Vietnam; goods from non-tax zones imported into the domestic market satisfy the origin conditions from countries, groups of countries, or territories with special preferential tax agreements in trade relations with Vietnam;

c) The ordinary tax rate applies to imported goods not falling under the provisions at points a and b of this clause. The ordinary tax rate is set at 150% of the corresponding preferential tax rate per item. In cases where the preferential tax rate is 0%, the Prime Minister of the Government of Vietnam shall decide the application of the ordinary tax rate pursuant to Article 10 of this Law.

Thus, the amount of export duty is determined based on the taxable value and the tax rate based on the percentage (%) of each item at the time of tax calculation.