What is the taxable value for import duty in Vietnam?

What is the taxable value for import duty in Vietnam?

Under Article 8 of the Law on Export and Import Duties 2016:

Taxable value and time for tax calculation

1. The taxable value is the customs value prescribed by the Law on Customs.

2. The time for calculating export or import duty is the time of registration of the customs declaration.

In case of exports or imports that are not subject to taxation, exempt from export or import duties, or applying in-quota duty rates or fixed duty but then the eligibility for tax exemption or in-quota duties is changed as prescribed by law, the time for tax calculation is the time of registration of the new customs declaration.

The time of registration of the customs declaration shall comply with regulations of law on customs.

Thus, the taxable value for import duty in Vietnam is the customs value stipulated by the Law on Customs 2014.

What is the taxable value for import duty in Vietnam? (Image from the Internet)

Is the basis for determining import duty in Vietnam the taxable value?

Under Article 5 of the Law on Export and Import Duties 2016:

Basis for calculation of proportional duties

1. The amount of export or import duty is determined according to the taxable value and duty rate (%) of each article at the time of tax calculation.

2. Export duty rate of each article is specified in the export duty schedule.

Where goods are exported to a country or group of countries or territories having an agreement on concessional export duties with Vietnam, such agreement shall apply.

3. Import duty rates include preferential rates, special preferential rates, and ordinary rates as follows:

a) Preferential rates apply to imports originated in any country or group of countries or territories that accord Vietnam most-favored nation treatment; goods that are imported from a free trade zone to the domestic market and originating in a country or group of countries or territories that accord Vietnam most-favored nation treatment;

b) Special preferential rates apply to imports originated in any country or group of countries or territories that have an agreement on special preferential import duties with Vietnam; goods that are imported from a free trade zone to the domestic market and originating in a country or group of countries or territories that have an agreement on special preferential import duties with Vietnam;

c) Ordinary rates apply to imports other than those mentioned in Point a and Point b of this Clause. The ordinary rate is 150% of the preferential rate applied to the corresponding article. In case preferential rate is 0%, the Prime Minister shall decide the application of ordinary rate pursuant to Article 10 of this Law.

Thus, the taxable value is one of the bases for determining import duty in Vietnam. Import duty is determined based on the taxable value and the tax rate (%) of each item at the time of tax calculation.

What is the import duty payment deadline in Vietnam?

Under Article 9 of the Law on Export and Import Duties 2016, the regulations are as follows:

Tax payment deadline

1. Duties on exports and imports have to be paid before customs clearance or release as prescribed by the Law on Customs, except for the case in Clause 2 hereof.

Where a credit institution provides guarantee for the amount of tax payable, customs clearance or release shall be granted. However, late payment interest shall be paid for the period from the date of customs clearance or release to the tax payment date in accordance with the Law on Tax administration. The guarantee period shall not exceed 30 days from the day on which the customs declaration is registered.

If the taxpayer fails to pay tax and late payment interest by the end of the guarantee period, the guarantor shall fully pay tax and late payment interest on behalf of the taxpayer.

2. The taxpayer given priority as prescribed by the Law on Customs shall pay tax on the customs declarations granted customs clearance or release in the month by the 10th of the next month. If the taxpayer fails to pay tax by the aforesaid deadline, the taxpayer shall fully pay outstanding tax and late payment interest as prescribed by the Law on Tax administration.

Thus, the deadline for paying import duty is before customs clearance or release of goods as prescribed by the Law on Customs 2014.

However, the taxpayer given priority as prescribed by the Law on Customs shall pay tax on the customs declarations granted customs clearance or release in the month by the 10th of the next month.