When is the time for calculating export tax in Vietnam?

When is the time for calculating export tax in Vietnam?

Based on Article 8 of the Law on Export Tax and Import Tax 2016, the regulation is as follows:

Tax Value, Tax Calculation Time

1. The export tax and import tax value is the customs value as regulated by the Customs Law.

2. The time for calculating export tax and import tax is the time of registration of the customs declaration.

For export and import goods that are subject to tax exemption, export tax exemption, import tax exemption, or application of tax rates, absolute tax rates within the tariff quota but change to non-taxable, tax-exempt, apply tax rates, absolute taxes within the tariff quota as prescribed by law, the time for calculating tax is the time of registration of the new customs declaration.

Thus, the time for calculating export tax is the time of registration of the customs declaration. The registration time of the customs declaration is in accordance with customs law.

When is the time for calculating export tax in Vietnam? (Image from the Internet)

When is the export tax payment deadline in Vietnam?

Based on Article 9 of the Law on Export Tax and Import Tax 2016, the regulation is as follows:

Tax Payment Deadline

1. Export or import goods subject to tax must pay tax before customs clearance or release of goods as prescribed by the Customs Law, except in cases specified in clause 2 of this Article.

If the payable tax amount is guaranteed by a credit institution, it is allowed to clear or release the goods but must pay late payment interest as prescribed by the Tax Administration Law from the day of clearance or release of goods until the day of tax payment. The maximum guarantee period is 30 days from the date of registration of the customs declaration.

In case the credit institution has provided a guarantee but the guarantee period expires and the taxpayer has not yet paid the tax and late payment interest, the guarantor is responsible for fully paying the tax and late payment interest on behalf of the taxpayer.

2. Taxpayers who are entitled to preferential policies as prescribed by the Customs Law are allowed to pay taxes for cleared or released customs declarations of the month no later than the tenth day of the following month. If this deadline is missed, the taxpayer must fully pay the owed tax and late payment interest as prescribed by the Tax Administration Law.

Thus, export tax must be paid before customs clearance or release of tax-liable goods. However, in the case where the taxpayer is eligible for preferential policies as prescribed, the export tax can be paid for the cleared or released customs declarations of the month no later than the tenth day of the following month.

What are the bases for calculating export tax on goods using the percentage method in Vietnam?

Based on Article 5 of the Law on Export Tax and Import Tax 2016, the regulation is as follows:

Bases for Calculating Export Tax, Import Tax for Goods Applying the Percentage Method

1. The amount of export tax, import tax is determined based on the tax value and the percentage tax rate (%) of each item at the time of tax calculation.

2. The tax rate for exported goods is specified for each item in the export tax schedule.

In case of exported goods to a country, group of countries, or territory that has an export tax preference agreement in trade relations with Vietnam, the application shall follow these agreements.

3. The tax rate for imported goods includes preferential tax rates, special preferential tax rates, ordinary tax rates, and shall be applied as follows:

a) The preferential tax rate applies to imported goods originating from a country, group of countries, or territory that grants most-favored-nation treatment in trade relations with Vietnam; goods from a non-tariff zone imported into the domestic market, meeting the origin criteria from a country, group of countries, or territory that grants most-favored-nation treatment in trade relations with Vietnam;

b) The special preferential tax rate applies to imported goods originating from a country, group of countries, or territory that has a special preferential tax agreement in trade relations with Vietnam; goods from a non-tariff zone imported into the domestic market, meeting the origin criteria from a country, group of countries, or territory that has a special preferential tax agreement in trade relations with Vietnam;

c) The ordinary tax rate applies to imported goods not falling under the cases specified at point a and point b of this clause. The ordinary tax rate is set at 150% of the preferential tax rate of each corresponding item. In cases where the preferential tax rate is 0%, the Prime Minister of Vietnam shall determine the application of the ordinary tax rate based on the provisions of Article 10 of this Law.

Thus, the amount of export tax is determined based on the tax value and the percentage tax rate (%) of each item at the time of tax calculation.