Which imported goods are not subject to excise tax in Vietnam?

Which imported goods are not subject to excise tax in Vietnam?

According to Clause 2, Article 3 of Circular 195/2015/TT-BTC, the following types of imported goods are not subject to excise tax:

(1) Humanitarian aid, non-refundable aid; gifts and donations, including:

- Humanitarian aid and non-refundable aid, including imported goods from non-refundable aid sources approved by competent authorities; humanitarian assistance goods, emergency relief to overcome the consequences of war, natural disasters, and epidemics.

- Gifts from foreign organizations and individuals to state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, armed forces units.

- Gifts and donations to individuals in Vietnam as per the legal regulations.

(2) Goods in transit or transported via Vietnamese border, transferred goods, including:

- Goods transported from the exporting country to the importing country through Vietnamese border gates without customs clearance into Vietnam and without customs clearance out of Vietnam.

- Goods transported from the exporting country to the importing country through Vietnamese border gates and stored in bonded warehouses without customs clearance into and out of Vietnam.

- Goods in transit or transported via Vietnamese borders under agreements signed between the Government of Vietnam and foreign governments or between authorized representatives of the Government of Vietnam and foreign governments.

- Goods transported from the exporting country to the importing country without transiting through Vietnamese ports.

(3) Temporarily imported goods for re-export, if actually re-exported within the time limit without having to pay import tax as prescribed by law on export and import taxes, are not subject to SCT corresponding to the actually re-exported quantity.

Temporarily exported goods for re-import, if actually re-imported within the time limit without having to pay export tax as prescribed by law on export and import taxes, are not subject to SCT corresponding to the actually re-imported quantity.

(4) Temporarily imported goods for fairs and exhibitions, if actually re-exported within the time limit without having to pay import tax as per the prescribed policies.

If the time for fairs and exhibitions expires and the organization or individual does not re-export the temporarily imported goods, they must declare and pay SCT; if they do not declare and are found during inspections, besides back-tax collection, they will be penalized according to the law.

(5) Articles of foreign organizations and individuals under diplomatic immunity as prescribed by law on diplomatic immunity.

(6) Goods carried by individuals within the duty-free baggage allowance of Vietnamese and foreign individuals upon entry and exit through Vietnamese border gates.

(7) Imported goods for sale in duty-free shops as regulated by law.

Which imported goods are not subject to excise tax in Vietnam? (Image from the Internet)

Which entities are subject to excise tax in Vietnam?

According to Article 4 of Circular 195/2015/TT-BTC, individuals and organizations producing, importing goods, and providing services that are subject to excise tax include:

- Business organizations established and registered under the Law on Enterprises 2020 and the Law on Cooperatives 2023.

- Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, socio-political-professional organizations, armed forces units, non-business organizations, and other organizations.

- Enterprises with foreign investment and foreign parties participating in business cooperation under the Law on Investment 2020; foreign organizations and individuals doing business in Vietnam without establishing a legal entity in Vietnam.

- Individuals, households, independent business groups, and other entities engaged in production, business, and import activities.

For export businesses buying goods subject to SCT from production facilities for export but not exporting but consuming domestically, the export business must pay SCT. When selling goods, the export business must declare and pay the full SCT.

When do excise taxpayers get a tax refund in Vietnam?

Based on Article 8 of the Law on excise tax 2008, the provisions are as follows:

Tax Refund, Tax Credit

1. excise taxpayers may get a refund for the tax already paid in the following cases:

a) Temporarily imported goods for re-export;

b) Imported raw materials for the production and processing of export goods;

c) Tax settlement upon merger, consolidation, division, separation, dissolution, bankruptcy, ownership transformation, enterprise transformation, operation termination with extra paid tax;

d) Having a tax refund decision from a competent authority according to the law and cases of SCT refunds under international treaties to which the Socialist Republic of Vietnam is a signatory.

Tax refunds for temporarily imported goods for re-export and imported raw materials for the production and processing of export goods are only applicable to actually exported goods.

2. Taxpayers producing goods subject to SCT using raw materials that have paid SCT, if with legal proof, may deduct the already paid tax amount for the raw materials when determining the payable SCT at the production stage.

The Government of Vietnam specifies this Article.

Thus, excise taxpayers shall receive a refund for the tax already paid in the following cases:

- Temporarily imported goods for re-export;

- Imported raw materials for the production and processing of export goods;

- Tax settlement upon merger, consolidation, division, separation, dissolution, bankruptcy, ownership transformation, enterprise transformation, and operation termination with extra paid tax;

- Having a tax refund decision from a competent authority according to the law and cases of SCT refunds under international treaties to which the Socialist Republic of Vietnam is a signatory.

Tax refunds for temporarily imported goods for re-export, and imported raw materials for the production and processing of export goods are only applicable to actually exported goods.