When is a taxpayer subject to enforcement through the suspension of customs procedures for exports and imports in Vietnam?

When is a taxpayer subject to enforcement through the suspension of customs procedures for exports and imports in Vietnam?

According to Article 131 of the Law on Tax Administration 2019, it is stipulated as follows:

Enforcement by suspension of customs procedures for exports and imports

1. The head of the customs authority where the taxpayer has overdue tax debts must notify no later than 5 working days before applying the measure of suspending customs procedures for exports and imports.

2. The measure of suspending customs procedures is not applied in the following cases:

a) Exported goods are subject to tax exemption, non-taxable subjects, or have an export tax rate of 0%;

b) exports and imports directly serving national defense, security, disaster prevention, epidemic prevention, emergency relief; humanitarian aid, non-refundable aid.

3. The Government of Vietnam provides detailed regulations on this Article.

Thus, the enforcement by suspension of customs procedures for exports and imports is as follows:

- The head of the customs authority where the taxpayer has overdue tax debts must notify no later than 5 working days before applying the measure of suspending customs procedures for exports and imports.

In addition, the measure of suspending customs procedures is not applied in the following cases:

- Exported goods are subject to tax exemption, non-taxable subjects, or have an export tax rate of 0%;

- exports and imports directly serving national defense, security, disaster prevention, epidemic prevention, emergency relief; humanitarian aid, non-refundable aid.

When is a taxpayer subject to enforcement through the suspension of customs procedures for exports and imports in Vietnam? (Image from the Internet)

What contents are included in the tax enforcement decision in Vietnam?

According to Article 127 of the Law on Tax Administration 2019, it is stipulated as follows:

Tax enforcement decision

1. The tax enforcement decision includes the following main contents:

a) Date, month, year of issuance;

b) Basis for issuing the decision;

c) Issuer of the decision;

d) Name, address, tax identification number of the taxpayer subject to enforcement of tax enforcement decision;

dd) Reason for enforcement of tax enforcement decision;

e) Measure of enforcement of tax enforcement decision;

g) Time and place of implementation;

h) Leading agency, coordinating agency implementing the tax enforcement decision.

2. The tax enforcement decision must be sent to the subject of enforcement, the direct superior tax management authority, and relevant organizations and individuals; in case of eligibility for electronic transactions in the field of tax management, the enforcement decision is sent electronically and updated on the electronic portal of the tax management authority; in case of enforcement by the measure specified at point đ, clause 1, Article 125 of this Law, the enforcement decision must be sent to the Chairman of the People's Committee of the commune where the enforcement of the administrative decision on tax management is carried out before implementation.

3. The enforcement decision is effective for one year from the date of issuance; in case of enforcement by the measure of extracting money from the account, freezing the account of the subject of enforcement, it is effective for 30 days from the date of issuance.

The tax enforcement decision includes the following main contents:

- Date, month, year of issuance;

- Basis for issuing the decision;

- Issuer of the decision;

- Name, address, tax identification number of the taxpayer subject to enforcement of tax enforcement decision;

- Reason for enforcement of tax enforcement decision;

- Measure of enforcement of tax enforcement decision;

- Time and place of implementation;

- Leading agency, coordinating agency implementing the tax enforcement decision.

How many measures are there for enforcing tax enforcement decision in Vietnam?

The measures for enforcing tax enforcement decision are stipulated in Clause 1, Article 125 of the Law on Tax Administration 2019. Specifically:

(1) Extracting money from the account of the subject of enforcement of tax enforcement decision at the State Treasury, commercial banks, other credit institutions; freezing accounts;

(2) Deducting part of the salary or income;

(3) Suspending customs procedures for exports and imports;

(4) Suspending the use of invoices;

(5) Seizing assets, auctioning seized assets according to legal provisions;

(6) Collecting money or other assets of the subject of enforcement of tax enforcement decision held by agencies, organizations, or individuals;

(7) Revoking the business registration certificate, enterprise registration certificate, cooperative registration certificate, investment registration certificate, establishment and operating license, practice license.

Moreover, the aforementioned enforcement measures will cease to be effective once the owed taxes are fully paid into the state budget.