What are cases where excise taxpayers are entitled to tax refund in Vietnam?

What are cases where excise taxpayers are entitled to tax refund in Vietnam?

According to Article 7 Circular 195/2015/TT-BTC, excise taxpayers are eligible for tax refund in the following cases:

(1) Goods temporarily imported for re-export include:

- Imported goods that have paid excise tax but are still in storage or warehousing at the border gate and under the supervision of customs authorities, and are re-exported abroad.

- Imported goods that have paid excise tax to deliver or sell to foreigners through agents in Vietnam; imported goods for sale to vehicles of foreign companies on international routes via Vietnamese ports and Vietnamese vehicles on international routes in accordance with the Government of Vietnam.

- Goods temporarily imported for re-export under the method of temporary importation for re-export business. When re-exported, the paid excise tax corresponding to the re-exported goods will be refunded.

- Imported goods that have paid excise tax but are re-exported abroad will be refunded the excise tax corresponding to the exported goods.

- Goods temporarily imported for attending fairs, exhibitions, product introductions, or serving other jobs within a specified time that have paid excise tax, when re-exported, will be refunded the tax.

- Imported goods that have paid excise tax as declared, but the actual import quantity is less than declared; imported goods that are damaged or lost during the import process for legitimate reasons, that have paid excise tax.

- For imported goods that are not in conformity with the quality, type as per contract, import permit (sent incorrectly by the foreign shipper), with inspection by competent authorities and confirmation by the foreign shipper, the customs authorities will recheck and confirm the excise tax amount to be paid. If there is excess tax paid, it will be refunded; if there is a tax shortfall, it must be paid fully.

If allowed to be re-exported to the foreign country, the excise tax already paid for the exported goods will be refunded.

If goods are returned to the foreign party within the period not required to pay import tax as per policies, the customs authorities will check the procedures and do not collect excise tax corresponding to the returned imported goods.

(2) Goods that are imported materials for producing and processing export goods will have the excise tax already paid refunded corresponding to the amount of materials used to produce the actually exported goods.

Note: The refund of excise tax for cases (1), (2) is only implemented for actually exported goods, and the procedures, dossiers, order, and authority to settle the excise tax refund for imported goods are carried out in accordance with the regulations on handling the import tax refund under the law on export and import tax.

(3) Production and business establishments settling taxes when merging, separating, dissolving, bankrupting, changing the type of ownership, transferring, selling, contracting, leasing state-owned enterprises that have overpaid excise tax may request the tax authority to refund the overpaid excise tax.

(4) excise tax refund in the following cases:

- Reimbursement according to the decision of a competent authority as per the law.

- Reimbursement according to international treaties to which the Socialist Republic of Vietnam is a member.

- Reimbursement in case the paid excise tax amount exceeds the payable excise tax amount as per the regulations.

What are cases where excise taxpayers are entitled to tax refund in Vietnam? (Image from the Internet)

Which goods are subject to excise tax in Vietnam?

Based on Article 2 Law on excise tax 2008 and Article 2 Decree 108/2015/ND-CP, the subjects of excise tax include:

(1) Goods subject to excise tax:

- Cigarettes, cigars, and other forms of tobacco used for smoking, inhaling, chewing, snuffing, and sucking;

- Alcohol;

- Beer;

- Automobiles with fewer than 24 seats, including cars designed to carry both passengers and goods of two or more rows of seats, with a fixed partition between the passenger compartment and the cargo compartment;

- Motorcycles with two or three wheels with a cylinder capacity of over 125 cm3;

- Aircraft, yachts (for civil purposes).

- All types of gasoline;

- Air conditioners with a capacity of 90,000 BTUs or less;

- Playing cards;

- Joss paper, ceremonial objects (excluding children's toys, teaching aids).

Note: Goods subject to excise tax must be complete products, excluding component sets for assembling these goods.

(2) Services subject to excise tax

- Nightclub business;

- Massage, karaoke business;

- Casino business; prize-winning electronic games including jackpot machines, slot machines, and similar types;

- Betting business (including: sports, entertainment, and other forms of betting as prescribed by law);

- Golf business including selling membership cards, golf tickets;

- Lottery business.

What are exemptions from excise tax in Vietnam?

Based on Article 3 Law on excise tax 2008 and Article 3 Decree 108/2015/ND-CP, goods as stipulated above are not subject to excise tax in the following cases:

(1) Goods produced or processed directly for export or sold, consigned to other business establishments for export;

(2) Imported goods including:

- Humanitarian aid, non-refundable aid; gifts to state agencies, political organizations, socio-political organizations, socio-professional organizations, social organizations, socio-professional associations, units of the people's armed forces, gifts to individuals in Vietnam under the provisions of the Government of Vietnam, including:

+ Humanitarian aid, non-refundable aid, including imported goods from non-refundable aid funds approved by competent authorities, humanitarian assistance, emergency aid to address the consequences of war, natural disasters, diseases;

+ Gifts from organizations and individuals abroad to state agencies, political organizations, socio-political organizations, socio-professional organizations, social organizations, socio-professional associations, units of the people's armed forces;

+ Gifts to individuals in Vietnam according to the provisions of the law.

- Goods in transit or borrowed roads through border gates and borders of Vietnam, transshipped goods under the provisions of the Government of Vietnam;

- Temporarily imported goods for re-export or temporarily exported goods for re-import, exempt from import and export tax within the time limits prescribed by the law on export and import tax;

- Supplies of foreign organizations and individuals according to diplomatic immunity standards; duty-free items; goods imported for sale in duty-free shops as prescribed by law;

(3) Aircraft, yachts used for business purposes of transporting goods, passengers, and tourists;

(4) Ambulances; prisoner transport vehicles; hearses; automobiles designed with seats and standing positions for 24 people or more; vehicles operated within amusement parks, amusement centers, sports complexes without registration for traffic and not participating in traffic;

(5) Goods imported from abroad into non-tariff zones, goods sold domestically into non-tariff zones for use only in non-tariff zones, goods traded between non-tariff zones, except passenger cars with fewer than 24 seats.