What is the duration of the tax payment guarantee period in Vietnam? What are regulations on assistance in recovery of customs debts in Vietnam?

What is the duration of the tax payment guarantee period in Vietnam?

Based on the provisions of Article 9 of the Law on Export and Import Duties 2016, it is stipulated as follows:

Tax Payment Deadline

1. Exported and imported goods subject to tax must be paid before customs clearance or release in accordance with the provisions of the Customs Law, except as specified in Clause 2 of this Article.

In cases where a credit institution guarantees the tax amount payable, clearance or release of goods is allowed, but late payment interest must be paid in accordance with the provisions of the Tax Administration Law from the date of clearance or release of goods to the date of tax payment. The maximum guarantee period is 30 days from the date of customs declaration registration.

If the taxpayer has been guaranteed by a credit institution but at the end of the guarantee period has not paid the tax and late payment interest, the guarantor is responsible for paying the full tax and late payment interest on behalf of the taxpayer.

2. Taxpayers eligible for priority policies as regulated by the Customs Law can pay taxes for customs declarations that have been cleared or released in the latest month by the tenth day of the following month. After this deadline, taxpayers must pay the full debt of taxes and late payment interest in accordance with the Tax Administration Law.

Thus, according to the above regulation, the duration of the tax payment guarantee period is a maximum of 30 days from the date of customs declaration registration.

What is the duration of the tax payment guarantee period in Vietnam? What are regulations on assistance in recovery of customs debts in Vietnam? (Image from the Internet)

What are regulations on assistance in recovery of customs debts in Vietnam?

Based on Clauses 3 and 4 of Article 31 of Decree 46/2020/ND-CP, the form and time of assistance in recovery of customs debts are as follows:

- Regarding the form of assistance in recovery of customs debts:

The tax debt recovery support is conducted in writing or through an electronic system. When there is a request for assistance in recovery of customs debts, the requesting customs authority must provide the following minimum information to the assisting customs authority:

+ Name and code of the customs declarant;

+ Transit declaration number, registration date;

+ GRN number;

+ The credit institution or foreign bank branch issuing the guarantee;

+ The amount and reason for arising customs tax payable;

+ Other relevant information (if necessary).

The provision and confidentiality of information are implemented in accordance with the Tax Administration Law and related legal provisions.

- Regarding the processing time for assistance in recovery of customs debts requests:

Within 60 days from the date of receiving the support request, the assisting customs authority must notify the requesting customs authority of the following information:

+ The activities conducted to recover customs tax debt and the results of tax debt recovery (if any);

+ Reasons for inability to recover, incomplete recovery, or refusal to assist in customs tax debt recovery.

- The cessation of assistance in recovery of customs debts will apply in the following case:

If the customs declarant presents documents and materials certified by the competent authority proving the customs tax debt is under consideration in the tax debt-originating country, the assisting customs authority shall temporarily cease all tax debt recovery activities and issue a notice to the requesting customs authority.

What are cases eligible for customs tax reduction in Vietnam?

Based on Article 30 of Decree 46/2020/ND-CP, the form and time of customs tax recovery support are as follows:

Cases arising with customs tax payable and customs tax reduction

1. The following cases are identified as having customs tax payable:

a) Goods illegally moved out of transit procedures through the ACTS System as stipulated in Clause 15, Article 3 of this Decree, or after 30 days when the departure customs authority does not receive dossiers or documents from the customs declarant or from the customs authorities along the transit route proving that the transit operation has been completed through the ACTS System as stipulated in Clause 2, Article 14 of this Decree;

b) Goods in transit switched to domestic consumption or changed in quantity, value, origin, commodity code compared to declarations and other cases causing tax payable to arise.

2. The location where the customs tax arises is where the goods in transit are illegally moved or switched to domestic consumption or changed in quantity, value, origin, commodity code, and other cases that lead to customs tax payable. If the specific location cannot be determined, the place where the customs tax arises is where the customs authority or competent authority detects the transit goods being illegally moved or switched to domestic consumption or changed in quantity, value, origin, commodity code, and other cases leading to customs tax payable.

3. Persons liable for customs tax payable include:

a) The customs declarant is primarily responsible for customs tax payable arising during the transit process;

b) The guarantor is responsible for payment of all or part of the customs tax payable arising during the transit process if the customs declarant fails to fulfill or fully fulfill the customs tax payment obligations;

c) Individuals who move or are involved in moving goods illegally out of transit procedures through the ACTS System are responsible for paying customs tax debt corresponding to the amount of goods illegally moved. The customs tax payment is implemented in accordance with Clause 8, Article 24 of this Decree.

Persons owning or holding goods illegally moved out of transit procedures through the ACTS System are responsible for paying customs tax debt corresponding to the amount of goods owned or held due to illegal movement. The customs tax payment is implemented in accordance with Clause 8, Article 24 of this Decree.

4. Customs tax reduction or exemption:

a) In the event that goods in transit which are under the supervision of the customs authority as per customs law are damaged or lost due to objective reasons as regulated by the Law on Export and Import Duties, the import tax shall be reduced. The tax reduction rate corresponds to the actual loss ratio of the goods. In the event that goods are completely damaged or lost, no tax is required;

b) Records, procedures, and authority for import tax reduction or exemption are implemented in accordance with the Law on Export and Import Duties and guiding documents.

Thus, according to the above regulation, customs tax reduction cases include:

- In the event that goods in transit, under the supervision of the customs authority as per customs law, are damaged or lost due to objective reasons as regulated by the Law on Export and Import Duties, the import tax shall be reduced.

The tax reduction rate corresponds to the actual loss ratio of the goods. In the event that goods are completely damaged or lost, no tax is required.

* Records, procedures, and authority for import tax reduction or exemption are implemented in accordance with the Law on Export and Import Duties and guiding documents.