What are cases where automobiles which neither are registered for circulation nor move on roads are exempt from excise tax in Vietnam?

What are cases where automobiles which neither are registered for circulation nor move on roads are exempt from excise tax in Vietnam?

Based on Clause 4, Article 3 of the Law on excise tax 2008 amended by Clause 2, Article 1 of the Law on Amendments to the Law on excise tax 2014, it is stipulated as follows:

Subjects not subject to tax

Goods stipulated in Clause 1, Article 2 of this Law are not subject to excise tax in the following cases:

1. Goods produced, processed, and directly exported or sold, consigned for export by other business establishments;

2. Imported goods include:

a) Humanitarian aid, non-refundable aid; gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, armed forces units, gifts for individuals in Vietnam as regulated by the Government of Vietnam;

b) Goods in transit or temporarily imported via Vietnamese border gates, goods moved from one bonded area to another as regulated by the Government of Vietnam;

c) Goods temporarily imported for re-export and temporarily exported for re-import and not subject to import or export tax within the timeframe regulated by export and import tax laws;

d) Personal belongings of foreign organizations, individuals exempted under diplomatic standards; duty-free accompanied baggage; imported goods for sale in duty-free shops as regulated by law;

3. Aircraft, yachts used for business transport of goods, passengers, tourists, and aircraft used for security and defense purposes;

4. Ambulances; vehicles for transporting prisoners; funeral vehicles; vehicles designed for both seated and standing passengers carrying 24 or more people; vehicles used in amusement parks, entertainment, and sports that are not registered for circulation and do not participate in traffic;

5. Goods imported from abroad into duty-free areas, goods sold within the domestic market to duty-free areas, and only used within duty-free areas, goods exchanged between duty-free areas except for passenger cars with fewer than 24 seats.

According to this regulation, one of the cases not subject to excise tax is vehicles used in amusement parks, entertainment, and sports, which are not registered for circulation and do not participate in traffic. This means that even though they are not registered for circulation or do not participate in traffic, they must be vehicles used in amusement parks, entertainment, and sports.

What are cases where automobiles which neither are registered for circulation nor move on roads are exempt from excise tax in Vietnam? (Image from the Internet)

Are air conditioners with a capacity under 90,000 BTU exempt from excise tax in Vietnam?

Based on Clause 5, Article 3 of Decree 108/2015/ND-CP, it is stipulated as follows:

Subjects not subject to tax

Subjects not subject to excise tax are implemented according to the provisions of Article 3 of the Law on excise tax and Clause 2 Article 1 of the Law on Amendments to the Law on excise tax.

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4. For automobiles stipulated in Clause 4 Article 3 of the Law on excise tax, they are vehicles specifically designed by the manufacturer as ambulances, transport vehicles for prisoners, funeral vehicles; vehicles designed for both sitting and standing passengers carrying 24 or more people; vehicles used in amusement parks, entertainment, and sports not registered for circulation and do not participate in traffic and specialized vehicles, vehicles not registered for circulation, do not participate in traffic as regulated by the Ministry of Finance in cooperation with relevant ministries and agencies.

5. For air conditioners with a capacity under 90,000 BTU specifically designed for installation on transport vehicles, including automobiles, railway carriages, ships, boats, aircraft.

Thus, according to the regulations, air conditioners with a capacity under 90,000 BTU are not automatically exempt from excise tax. To apply the non-tax mechanism, they must be specifically for installation on transport vehicles, including automobiles, railway carriages, ships, boats, aircraft.

What are cases where taxpayers of excise tax are refunded in Vietnam?

Based on Article 7 of Circular 195/2015/TT-BTC, the cases eligible for tax refunds are stipulated as follows:

- Goods temporarily imported for re-export include:

a) Imported goods that have paid excise tax but are still in storage, warehouses, under the supervision of the customs authority, and re-exported abroad.

b) Imported goods that have paid excise tax to deliver, sell goods to foreign countries through agents in Vietnam; imported goods to be sold to foreign vehicles on international routes via Vietnamese ports and Vietnamese vehicles on international routes according to regulations of the Government of Vietnam.

c) Temporarily imported goods for re-export under the method of temporary import for re-export. When re-exported, the paid excise tax is refunded, corresponding to the re-exported goods.

d) Imported goods that have paid excise tax but are re-exported abroad are refunded the paid excise tax for the returned goods.

đ) Temporarily imported goods for fairs, exhibitions, product introductions, or other temporary purposes that have paid excise tax are refunded upon re-export.

e) Imported goods that have paid excise tax according to declarations, but the actual import is less than declared; imported goods damaged or lost during importation with justified reasons, having paid excise tax.

g) For imported goods not suitable in quality, type according to contracts or import permits (due to the wrong shipment from a foreign party) that are inspected and certified by a competent testing authority and verified by the foreign party, the customs office re-calculates and verifies the excise tax payable. If excess tax has been paid, it is refunded; if underpaid, the shortfall must be paid.

In case of being allowed to export goods back to the foreign exporter, the previously paid excise tax for the returned goods is refunded.

If returning goods to the foreign party within the period not being subject to import duty according to regulated policies, the customs authority inspects procedures and exempts excise tax for returned goods.

- Goods imported as raw materials for the production or processing of exported goods are refunded the excise tax corresponding to the raw materials used to produce actually exported goods.

Refund of excise tax under Clauses 1, 2 of this Article is applied only to actually exported goods, and dossiers, procedures, and authority for processing excise tax refunds for imported goods follow provisions applicable to import tax refunds as per the laws on export and import duties.

- Manufacturing and business facilities settling tax upon merger, division, separation, dissolution, bankruptcy, ownership conversion, transfer, sale, contracting, or lease of State enterprises, having excess excise tax paid, are entitled to request tax authorities for a refund.

- excise tax refunds in the following cases:

a) Refund according to decisions by competent authorities as per law.

b) Refund according to international treaties to which the Socialist Republic of Vietnam is a member.

c) Refund in cases where the paid excise tax exceeds the payable excise tax according to regulations.

Dossiers, procedures, and authority for processing excise tax refunds under Clauses 3, 4 of this Article are implemented according to the Tax Administration Law and its guiding documents.