What are the methods of environmental protection tax declaration in Vietnam?

What are the methods of environmental protection tax declaration in Vietnam?

Under sub-section 21, Section 2 of Administrative Procedures issued together with Decision 1462/QD-BTC of 2022, taxpayers can declare environmental protection tax via three methods:

- Submit directly at the tax authority's headquarters.

- Or send via postal system.

- Or send electronic dossiers to the tax authority through electronic transactions (Tax Department's web portal/authorized state agencies' web portal or service providers (T-VAN)).

What are the methods of environmental protection tax declaration in Vietnam? (Image from the Internet)

What are the procedures for environmental protection tax declaration in Vietnam?

According to sub-section 21, Section 2 of Administrative Procedures issued together with Decision 1462/QD-BTC of 2022, the procedures for environmental protection tax declaration in Vietnam are carried out as follows:

Step 1: The taxpayer prepares data, completes the declaration form, and submits it to the tax authority no later than the 20th of the following month of arises. To be specific:

- Taxpayers submit the environmental protection tax declaration at the place of production of taxable goods, the place of production, and coal business, except for the environmental protection tax of petrol and oil trading (as stipulated at point a, clause 4, Article 11 of Decree 126/2020/ND-CP), environmental protection tax on domestically mined and consumed coal (as stipulated at point b, clause 4, Article 11 of Decree 126/2020/ND-CP).

- For petrol and oil trading:

+ Key traders directly importing, producing, or blending petrol and oil submit the tax declaration to the managing tax authority for the amount of petrol and oil directly exported or sold by the key traders, including internal consumption, exchange for other products, return of consigned import goods, selling to organizations or individuals that are not subsidiaries or affiliate units as per the Enterprise Law of key traders; excluding the amount of exported and consigned imported petrol and oil for other key traders.

+ Subsidiaries as per the Enterprise Law of key traders or dependent units of subsidiaries, dependent units of key traders submit the tax declaration to the managing tax authority for the amount of petrol and oil sold to organizations or individuals that are not subsidiaries as per the Enterprise Law of key traders and dependent units of subsidiaries.

+ Key traders or subsidiaries as per the Enterprise Law of key traders that have dependent units conducting business in different provinces or municipalities from where the key traders or their subsidiaries are headquartered, and the dependent unit does not keep separate accounts for environmental protection tax declaration, then the key traders or subsidiaries shall declare environmental protection tax to the managing tax authority; calculate, allocate the tax obligation for each locality where the dependent units are headquartered as prescribed by the Minister of Finance.

- For domestically mined and consumed coal:

Enterprises engaging in mining and consuming domestic coal through management and delegating extraction, processing, and consumption duties to subsidiaries or dependent units shall have the unit responsible for coal consumption declare taxes for the total environmental protection tax arising from taxable coal and submit the tax declaration to the managing tax authority along with a Table determining the tax amount payable for each locality where the coal mining company is headquartered as prescribed by the Minister of Finance.

Step 2: The tax authority receives:

- The tax management authority receives the tax declaration, and notifies the receipt of the tax declaration; in the case of unlawful, incomplete, or incorrect forms, it shall notify the taxpayer within 3 working days from the date of receipt of the declaration.

- In case of handling submissions through the Tax Department's web portal, the tax authority receives, reviews, and processes the dossiers through its electronic data processing system:

+ The Tax Department's web portal sends a notification of receipt that the taxpayer has submitted dossiers or a notice of reasons for not receiving dossiers to the taxpayer through the web portal chosen by the taxpayer for preparing and submitting dossiers (Tax Department's web portal/authorized state agencies' web portal or service providers (T-VAN)) no later than 15 minutes after receiving the taxpayer's electronic tax declaration

+ The tax authority reviews and processes the taxpayer's tax declaration as prescribed by the Law on Tax Administration and guiding dossiers, sending an acceptance/rejection notification of the dossiers to the web portal chosen by the taxpayer for preparing and submitting dossiers no later than 1 working day from the date stated on the notification of receipt of electronic tax declaration.

Which goods are not subject to environmental protection tax in Vietnam?

According to Article 4 of the Environmental Protection Tax Law 2010, goods not subject to environmental protection tax in Vietnam include:

- Goods not specified in Article 3 of Environmental Protection Tax Law 2010 shall not be subject to environmental tax.

- Goods provided for in Article 3 of Environmental Protection Tax Law 2010 shall not be subject to environmental tax in the following cases:

+ Goods transported in transit or transshipped through the border gate, Vietnam border in accordance with the law, including the transportation of goods from exporting countries to importing countries through the border gate of Vietnam but it is not made import & export procedures into and out of Vietnam; transit goods through the border gate, the border of Vietnam on the basis of agreements signed between the Government of Vietnam and a foreign government or an agreement between agencies, representative authorized under the provisions of law by government of Vietnam and foreign governments;

+ Goods temporarily imported for re-export within the time limit prescribed by law;

+ Goods directly exported by production facilities or entrusted for the export business to export, except for organizations, households and individuals to purchase goods which environmental protection taxable subject to export.