What are the regulations on declaring tax by individuals selling goods subject to environmental protection tax in Vietnam?

What are the regulations on declaring tax by individuals selling goods subject to environmental protection tax in Vietnam?

Under Clause 4, Article 7 of Circular 152/2011/TT-BTC:

Tax declaration and payment

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3. For imported coal: Taxpayers shall make declaration under Item b, Point 1.3, Clause 1 of this Article. If importing crude coal containing anthracite coal, taxpayers must separately declare the quantity of imported anthracite coal in order to pay environmental protection tax at the rate applicable to anthracite coal. If the actual quantity of imported anthracite coal is different from the quantity of coal declared upon import, taxpayers shall make additional declaration and adjustment.

4. Environmental protection tax shall be paid only once for produced or imported goods. In case environmental protection tax has been paid for exported goods which must be re-imported into Vietnam, environmental protection tax needs not to be paid upon import.

For organizations and individuals that purchase goods for production and business purposes for which environmental protection tax has been paid, environmental protection tax on purchased goods shall be accounted as cost of goods or cost price of products. For organizations and individuals that sell goods subject to environmental protection tax, value-added taxed price is the price inclusive of environmental protection tax.

Thus, according to the above regulation, individuals selling goods subject to environmental protection tax shall declare tax through the VAT taxable price, which includes the environmental protection tax.

What are the regulations on declaring tax by individuals selling goods subject to environmental protection tax in Vietnam? (Image from the Internet)

What is the environmental protection taxable time for goods sold in Vietnam?

The environmental protection taxable time for imported goods is regulated in Article 6 of Circular 152/2011/TT-BTC as follows:

Tax calculation time

1. For produced goods sold, exchanged, donated, used for sales promotion or advertising, the tax calculation time is the time of transfer of the goods ownership or use right.

2. For produced goods used for internal consumption, the tax calculation time is the time goods are put into use.

3. For imported goods, the tax calculation time is the time of registration of customs declarations, except petrol and oil imported for sale as specified in Clause 4 of this Article.

4. For petrol and oil produced or imported for sale, the tax calculation time is the time principal petrol and oil traders sell petrol and oil.

Thus, the environmental protection taxable time for goods sold in Vietnam is when transferring ownership or right to use the goods.

Will the environmental protection tax on goods temporarily imported for display at fairs and exhibitions in Vietnam be refunded?

Under Article 8 of Circular 152/2011/TT-BTC, the tax refund is regulated as follows:

Tax refund

Environmental protection taxpayers may have the paid environmental protection tax amount refunded in the following cases:

1. Imported goods which are still in warehouses or storing yards at border gates and under customs supervision and allowed to be re-exported abroad.

2. Goods imported for transfer and sale to foreign parties via Vietnam-based agents; petrol and oil sold to foreign firms' vehicles on routes via Vietnamese ports or to Vietnamese vehicles on international routes under law.

3. For goods temporarily imported for re-export by the mode of temporary import for re-export, the paid environmental protection tax amount shall be refunded for the quantity of re-exported goods.

4. For imported goods re-exported abroad by importers (including returned goods), the paid environmental protection tax amount shall be refunded for the quantity of re-exported goods.

5. For goods temporarily imported for display at fairs, exhibitions or product shows. the paid environmental protection tax amount shall be refunded for the quantity of re-exported goods.

Refund of environmental protection tax under this Article applies only to actually exported goods. Procedures, dossiers, order and competence for environmental protection tax refund for exported goods comply with regulations applicable to refund of import duty under the law on import duty and export duty.

Thus, according to the above regulation, for goods temporarily imported for display at fairs, exhibitions or product shows. the paid environmental protection tax amount shall be refunded for the quantity of re-exported goods.

Note: The refund of environmental protection tax as specified in Article 8 of Circular 152/2011/TT-BTC applies only to actually exported goods. Procedures, dossiers, order and competence for environmental protection tax refund for exported goods comply with regulations applicable to refund of import duty under the law on import duty and export duty.