What are procedures and authority for export duty reduction for exports in Vietnam?

What are procedures and authority for export duty reduction for exports in Vietnam?

Based on Clause 3 Article 32 of Decree 134/2016/ND-CP, amended by Clause 16 Article 1 of Decree 18/2021/ND-CP, the procedures and authority for reducing export tax on exports are as follows:

- Taxpayers must submit their dossiers to the Sub-department of Customs where the customs procedures are carried out at the time of customs declaration or no later than 30 working days from the date of written confirmation on the extent of damage, loss, or destruction;

- If at the time of customs procedures, the taxpayer submits complete dossiers as regulated, the Sub-department of Customs inspects the dossiers, inspects the actual goods, checks the conditions for duty reduction, and implements duty reduction within the customs procedures timeframe as stipulated in Article 23 of the Customs Law 2014;

- If the taxpayer submits the dossiers after customs procedures:

+ Within 30 days from the date of receiving complete dossiers, the Customs Department of the province or city is responsible for compiling the dossiers, verifying information, assessing the accuracy and completeness of the dossiers, and making a decision on duty reduction according to Form No. 12 Appendix 7 issued with Decree 18/2021/ND-CP or notifying the taxpayer of the reasons for ineligibility for duty reduction and the payable tax amount.

+ If the dossiers are incomplete, the customs authority must inform the taxpayer within 03 working days from the date of receiving the dossiers.

+ If an inspection of the actual goods beyond the customs supervision area is needed to provide sufficient grounds for a duty reduction, a post-clearance audit decision must be issued at the taxpayers' premises, and the tasks in this section must be carried out within a maximum of 40 days from the date of receiving complete dossiers.

Procedures and authority for export duty reduction in Vietnam (Image from Internet)

Vietnam: What does the application for export duty reduction for exports include?

According to Article 15 of Circular 06/2021/TT-BTC, the export duty reduction dossier for exports includes:

- An Official Dispatch requesting duty reduction specifying the type of tax proposed for reduction, the reason for duty reduction, the amount requested for reduction as per point a clause 2 Article 80 of the Tax Administration Law 2019 sent through the System using Form No. 7 Appendix II issued with Circular 06/2021/TT-BTC; in case of paper documents, use Form No. 15/TXNK Appendix I issued with Circular 06/2021/TT-BTC: 01 original document.

- Insurance contracts, compensation payment notifications from the insurance organization (if any); if the insurance contract does not include a compensation component for taxes, there must be a confirmation from the insurance organization; contracts or agreements for compensation from the transport company if the carrier caused the loss (if any): 01 photocopy stamped and verified by the agency proposing the duty reduction.

- Documents or minutes confirming the cause of damage from competent authorities at the location of damage:

+ A confirmation document from one of the following agencies or organizations: Commune, ward, commune-level town police authority; Communal People's Committee; Management Board of Industrial Zones, Export Processing Zones, Economic Zones, Border Gate Management Board, Airport Authority, Maritime Port Authority at the location of the unexpected event causing damage to imported materials, machinery, equipment due to natural disasters, catastrophes, epidemics, unexpected accidents: 01 original document.

+ A fire incident verification report from the local firefighting police agency where the fire occurred: 01 original document.

- An inspection certificate from a business engaging in inspection services regarding the lost quantity of goods or the actual loss ratio of goods: 01 original document.

What are procedures for the submission and recept of application for export duty reduction for exports in Vietnam?

The submission and recept of application for export duty reduction for exports are stipulated in Article 81 of the Tax Administration Law 2019 as follows:

- In cases where taxpayers self-determine the reduced tax amount, the submission and recept of the duty reduction dossier are conducted simultaneously with the declaration, submission, and recept of the tax declaration dossier.

- In cases where the tax administration authority decides on duty reduction according to the tax laws, the submission of the duty reduction dossier is regulated as follows:

+ For export tax and other taxes related to exports, the dossier is submitted to the customs authority authorized to resolve it as per the regulations of the Government of Vietnam;

+ For other types of taxes, the dossier is submitted to the directly managing tax authority.

- Taxpayers may submit the duty reduction dossier via the following methods:

+ Direct submission at the tax management authority;

+ Sending the dossier by postal service;

+ Submitting the dossier electronically through the tax management authority's electronic transaction portal.

- The tax management authority receives the tax exemption and reduction dossiers, notifying the recept of the duty reduction dossiers; if the dossier is not legitimate, not complete, or not in the correct format as stated, within 03 working days from the date of receiving the dossier, the tax management authority must notify the taxpayer in writing.