When is excise tax declared separately in Vietnam?

When is excise tax declared separately in Vietnam?

Based on point b, clause 4, Article 8 of Decree 126/2020/ND-CP regulating the types of taxes declared separately of tax obligations as follows:

Types of taxes declared monthly, quarterly, annually, for each occurrence of tax obligation, and final tax settlement

...

4. Types of taxes and other revenues belonging to the state budget declared separately, including:

a) Value-added tax of taxpayers as stipulated in clause 3, Article 7 of this Decree or taxpayers implementing value-added tax declaration using the direct method on added value according to the laws on value-added tax but have arising tax obligations in real estate transfer activities.

b) Excise tax of taxpayers engaged in export business who have not yet paid excise tax at the production stage and subsequently do not export but sell domestically. Excise tax of business establishments purchasing automobiles, aircraft, yachts produced domestically that are not subject to excise tax but later convert usage to subjects under excise tax.

c) Taxes on exported and imported goods, including: export tax, import tax, safeguard tax, anti-dumping tax, countervailing tax, excise tax, environmental protection tax, value-added tax. In cases where exported and imported goods do not need to be declared separately, they shall be carried out according to the guidelines of the Ministry of Finance.

...

Thus, excise tax is declared separately in the following cases:

- Taxpayers engaged in export business who have not yet paid excise tax at the production stage and subsequently do not export but sell domestically.

- Excise tax of business establishments purchasing automobiles, aircraft, yachts produced domestically that are not subject to excise tax but later convert usage to subjects under excise tax.

When is excise tax declared separately in Vietnam? (Image from internet)

Vietnam: What does the excise tax declaration dossier include?

According to the provisions in clause 4, Article 43 of the Law on Tax Administration 2019, the tax declaration dossier for the type of tax declared and paid for each occurrence of tax obligation includes:

- Tax declaration form;

- Invoices, contracts, and other documents related to tax obligations as prescribed by law.

In addition, clause 1, Article 7 of Decree 126/2020/ND-CP also provides guidance on the tax declaration dossier as follows:

- The tax declaration dossier includes the tax declaration form and supporting documents, materials related to determining the taxpayer’s tax obligations with the state budget, prepared and submitted to the tax management agency either electronically or in paper form.

- Taxpayers must declare the tax declaration form, schedule, and annex (if any) according to the prescribed format of the Minister of Finance and bear legal responsibility for the accuracy, truthfulness, and completeness of the content in the tax declaration form, schedule, annex; fully submit the required documents, materials in the tax declaration dossier to the tax management agency.

- For certain documents in the tax declaration dossier not standardized by the Ministry of Finance but are prescribed in related laws, follow the provisions of the relevant laws.

- Taxpayers, based on the tax declaration dossier and supplementary declaration dossier, must self-calculate the amount of tax payable, additional tax payable, late payment interest (if any) and pay it into the state budget as prescribed (except for cases provided in Article 13 of Decree 126/2020/ND-CP). The tax management agency determines tax as provided in Articles 50 and 52 of the Law on Tax Administration 2019 in cases where taxpayers fail to fully or accurately declare tax bases, tax payable in the tax declaration dossier.

- The tax management agency, based on the taxpayer’s tax declaration dossier, information from competent state agencies, and tax management information to calculate the tax payable amount and notify the amount to be paid to taxpayers as per provisions in Article 13 of Decree 126/2020/ND-CP.

Where to submit the excise tax declaration dossier in Vietnam?

According to point d, clause 1, Article 11 of Decree 126/2020/ND-CP, the regulations on the location to submit the excise tax declaration dossier are as follows:

Location to submit tax declaration dossiers

Taxpayers perform the regulations on the location to submit tax declaration dossiers as per clauses 1, 2, and 3, Article 45 of the Law on Tax Administration and the following regulations:

1. Location to submit tax declaration dossiers for taxpayers with multiple activities, business across multiple provincial-level jurisdictions as stipulated in points a and b, clause 4, Article 45 of the Law on Tax Administration is the tax agency where business activities occur in provinces, cities other than where the main office is located in the following cases:

...

d) Declaring excise tax at the place of production, processing of goods subject to excise tax or at the place of providing services subject to excise tax (excluding electronic lottery business activities).

In cases where taxpayers directly import goods subject to excise tax and subsequently sell them domestically, the taxpayer must declare excise tax with the tax agency directly managing where the taxpayer's main office is located.

đ) Declaring environmental protection tax at the place of production of goods subject to environmental protection tax, except for environmental protection tax of petroleum business activities as stipulated at point a, clause 4 of this Article.

...

Thus, the location to submit the excise tax declaration dossier is as follows:

- Declaring excise tax at the place of production, processing of goods subject to excise tax, or at the place of providing services subject to excise tax (excluding electronic lottery business activities).

- In cases where taxpayers directly import goods subject to excise tax and subsequently sell them domestically, the taxpayer must declare excise tax with the tax agency directly managing where the taxpayer's main office is located.