What are regulations on taxable prices for imports in Vietnam?

What are regulations on taxable prices of import duty for imports in Vietnam?

According to Article 7 of Circular 219/2013/TT-BTC, the guidelines are as follows:

Taxable price

1. For goods and services sold by production or business establishments, the sale price is exclusive of VAT. For goods and services subjected to excise tax, the sale price includes excise tax but excludes VAT.

For goods subjected to environmental protection tax, the sale price includes environmental protection tax but excludes VAT; for goods subjected to both excise tax and environmental protection tax, the sale price includes both taxes but excludes VAT.

2. For imports, the taxable prices is the CIF price at the entry point plus (+) the import tax (if any), plus (+) the excise tax (if any), plus (+) the environmental protection tax (if any). The CIF price at the entry point is determined based on the regulations regarding import tax pricing.

In cases where imports are exempted or reduced from import tax, the VAT calculation price is the CIF price plus (+) the import tax determined at the tax rate payable after exemption or reduction.

3. For products, goods, services (including those purchased externally or self-produced by business establishments) used for exchange, gifts, donations, or as salary payments, the VAT taxable price is the price of similar or equivalent goods and services at the time these activities occur.

Example 22: Entity A produces electric fans and uses 50 fans to exchange with entity B for steel, with a sale price (excluding tax) of 400,000 VND/unit. The VAT calculation price is 50 x 400,000 VND = 20,000,000 VND.

For invitations (as stated on the invitation, no fee is charged) to performances, fashion shows, beauty and model contests, and sports competitions authorized by competent state agencies according to legal provisions, the taxable price is determined to be zero (0). The organization hosting the performance or sports event is responsible for determining and holding accountable for the number of invitations and the list of organizations and individuals to whom they present invitations before the event takes place. If there is any fraudulent behavior in charging for invitations, it will be dealt with according to legal tax management provisions.

Example 23: Joint Stock Company X is permitted by competent authorities to host the “Miss Vietnam 20xx” contest. Besides printing tickets for sale to audiences, the Company prints a number of invitations to be freely given to invite certain representatives to attend and support the contest. These invitations have a list of recipient organizations and individuals. When declaring VAT, the taxable price for these given invitations is zero (0). If tax authorities discover that Joint Stock Company X charges a fee for these invitations, they will be dealt with according to tax management legal provisions.

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Thus, based on the regulations, the taxable prices for imports is the CIF price at the entry point plus (+) the import tax (if any), plus (+) the excise tax (if any), plus (+) the environmental protection tax (if any).

The CIF price at the entry point is determined according to the regulations for import tax pricing.

In cases where imports are exempted or reduced from import tax, the VAT calculation price is the CIF price plus (+) the import tax determined at the tax rate payable after exemption or reduction.

What are regulations on taxable prices for imports in Vietnam? (Image from Internet)

What are regulations on taxable prices of excise tax for imports in Vietnam?

The excise taxable price for imports at the import stage is regulated in Clause 2, Article 5 of Circular 195/2015/TT-BTC, amended by Clause 1, Article 2 of Circular 130/2016/TT-BTC as follows:

excise Taxable price

The excise taxable price for goods, services is the sale price of goods, the service provision price by the production or business establishment, excluding excise tax, environmental protection tax (if any), and value-added tax, specifically determined as follows:

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2. For imports at the import stage, the excise taxable price is determined as follows:

excise Taxable price = taxable prices + Import Tax.

The taxable prices is determined according to legal provisions on export and import taxes. In cases where imports are exempted or reduced from import tax, the taxable price does not include the exempted or reduced import tax.

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The excise taxable price for imports at the import stage is determined as follows:

excise Taxable price = taxable prices + Import Tax.

What are the import taxable prices in Vietnam?

The import tax calculation value is regulated in Article 8 of the Law on Export and Import Taxes 2016 as follows:

Tax Calculation Value, Tax Calculation Time

1. The export and import tax calculation value is the customs value according to the regulations of the Law on Customs.

2. The tax calculation time for export, import duties is the time of customs declaration registration.

For exported or imports that are not subjected to tax, are exempted from export or import duties, or apply a tax rate or absolute tax in a tariff quota but change in terms of tax exemption, apply tax rate, or absolute tax within the tariff quota according to legal provisions, the tax calculation time is the time of registering a new customs declaration.

The time for customs declaration registration is implemented according to legal provisions on customs.

Thus, the import tax calculation value is indeed the customs value according to the regulations of the Law on Customs.