When are export and import goods eligible for a reduction in export and import duties in Vietnam?

When are export and import goods eligible for a reduction in export and import duties in Vietnam?

Pursuant to Article 18 of the Law on Export and Import Duties 2016, regulations regarding the reduction of export and import duties are as follows:

Reduction of Taxes

1. Export and import goods that are under the supervision of the customs authorities and are damaged or lost, as certified by the competent agencies or organizations, are eligible for a tax reduction.

The tax reduction corresponds to the actual loss ratio of the goods. In cases where export and import goods are completely damaged or lost, no tax is required.

2. The procedures for tax reduction are implemented in accordance with the law on tax management.

According to Clause 1, Article 32 of Decree 134/2016/ND-CP, regulations are as follows:

Reduction of Export and Import Duties

1. Export and import goods under the supervision of customs authorities as per the Customs Law 2014 and guiding documents, if damaged or lost due to objective reasons, shall be entitled to a tax reduction as stipulated in Clause 1, Article 18 of the Law on Export and Import Duties.

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Therefore, based on the above regulations, export and import goods are eligible for tax reduction if they are under the supervision of the customs authorities and are damaged or lost, as certified by the competent agencies or organizations.

The reduction in export and import duties corresponds to the actual loss ratio of the goods. In cases where export and import goods are completely damaged or lost, no tax is required.

When are export and import goods eligible for a reduction in export and import duties in Vietnam? (Image from the Internet)

Where to submit the application for export and import tax reduction in Vietnam?

According to Clause 3, Article 32 of Decree 134/2016/ND-CP (amended by Clause 16, Article 1 of Decree 18/2021/ND-CP) regarding the location to submit applications for export and import tax reduction, it is as follows:

Reduction of Export and Import Duties

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3. Procedures and authority for tax reduction:

a) Taxpayers shall submit their application to the Customs Sub-Department where customs procedures are conducted at the time of customs procedures or no later than 30 working days from the date of receipt of the document certifying the extent of damage, loss, and destruction;

b) At the time of customs procedures, if the taxpayer submits a complete application as required, the Customs Sub-Department shall check the application, examine the actual goods, verify the conditions for tax reduction, and proceed with the tax reduction within the customs procedures period as prescribed in Article 23 of the Customs Law;

c) In case the taxpayer submits the application after the customs procedures:

Within 30 days from the date of receiving the complete application, the Provincial or City Customs Department is responsible for establishing a file, checking information, assessing the accuracy and completeness of the application and deciding on the tax reduction according to Form No. 12 Appendix VII issued with this Decree, or informing the taxpayer of the reasons for not qualifying for tax reduction, as well as the amount of tax to be paid. If the application is incomplete, the customs authority shall notify the taxpayer within 3 working days from the date of receipt of the application.

If a real check is needed for goods that have passed the customs supervision area to have sufficient grounds to resolve the tax reduction, a post-clearance inspection decision at the taxpayer's headquarters will be issued and the procedures outlined at this point will be completed within a maximum of 40 days from the date of receipt of the complete application.

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Therefore, based on the above provisions, taxpayers must submit their applications for export and import tax reduction to the Customs Sub-Department where customs procedures are conducted at the time of customs procedures or no later than 30 working days from the date of receipt of the document certifying the extent of damage, loss, and destruction.

*Note: In cases where a real check is needed for goods that have passed the customs supervision area to have sufficient grounds to resolve the tax reduction, a post-clearance inspection decision at the taxpayer's headquarters will be issued and the procedures stipulated at this point will be completed within a maximum of 40 days from the date of receipt of the complete application.

Which entities are the paying export and import taxpayers in Vietnam?

According to Article 3 of the Law on Export and Import Duties 2016, the subjects responsible for paying export and import duties are as follows:

- Owners of export and import goods.

- Organizations entrusted with export and import.

- Persons exiting or entering with goods for export or import, sending or receiving goods through Vietnam's border gates or borders.

- Persons authorized, guaranteed, and paying taxes on behalf of taxpayers, including:

+ Customs procedure agents in cases authorized by taxpayers to pay export and import duties;

+ Enterprises providing postal services, international express delivery services in cases of paying taxes on behalf of taxpayers;

+ Credit institutions or other organizations operating under the Law on Credit Institutions in cases of guaranteeing, paying taxes on behalf of taxpayers;

+ Persons authorized by the owners of goods in cases where the goods are gifts from individuals; luggage sent before or after the trip of persons exiting or entering;

+ Branches of enterprises authorized to pay taxes on behalf of enterprises;

+ Others authorized to pay taxes on behalf of taxpayers according to law.

- Persons purchasing and transporting goods within the tax exemption limits of border residents but not used for production, consumption, and brought for sale in the domestic market and foreign traders permitted to trade export, import goods at border markets according to the law.

- Persons having export, import goods belonging to non-taxable, tax-exempt objects but then changing and transferring to taxable objects according to law.

- Other cases according to legal provisions.