Are imports serving education subject to import tax exemption in Vietnam? What types of goods are included in the List of goods exempt from duties?
Are imports serving education subject to import tax exemption in Vietnam?
Pursuant to the provisions of Article 16 of the 2016 Law on Export and Import Duties in Vietnam on the List of goods exempt from duties, in which, in Clause 20, it is recorded that imports directly serving education that cannot be domestically produced are subject to tax exemption.
At the same time, Article 21 of Decree 134/2016/ND-CP stipulates tax exemption for goods imported directly serving education as follows:
Exemption of duties on imports serving education
1. Imports exclusively serving education that cannot be domestically manufactured are exempt from import duties as prescribed in Clause 20 Article 16 of the Law on Export and import duties.
2. The Ministry of Planning and Investment shall establish criteria for identification of goods that cannot be domestically manufactured.
3. The Board of Directors shall establish criteria for identification of imports exclusively serving education.
4. Procedures for granting duty exemption are specified in Article 31 of this Decree.
Thus, imports exclusively serving education that cannot be domestically produced will be exempt from tax and will be exempt from import tax.
Are imports serving education subject to import tax exemption in Vietnam? What types of goods are included in the List of goods exempt from duties?
What types of goods are included in the List of goods exempt from duties?
Pursuant to the provisions of Article 16 of the 2016 Law on Export and Import Duties in Vietnam, the subjects eligible for tax exemption include:
- Exported or imported goods of foreign entities granted diplomatic immunity and privileges in Vietnam within the allowance under an international treaty to which Socialist Republic of Vietnam is a signatory; luggage within the tax-free allowance of inbound and outbound passengers; imports to be sold at duty-free shops.
- Personal belongings, gifts.
- Goods traded across the border of border residents on the List of goods and within the tax-free allowance serving the manufacturing or consumption by border residents.
- Goods exempt from export and import duties under international treaties to which Socialist Republic of Vietnam is a signatory.
- Goods whose value or tax payable is below the minimum level.
- Imported raw materials, supplies, components serving processing of exports; finished products imported to be fixed on processed products; outward processing products.
- Goods exported for processing and then imported are exempt from export duty and import duty on the value of exported raw materials incorporated into the processed products.
- Materials, supplies, components imported for manufacture of exports.
- Goods manufactured, processed, recycled, assembled in a free trade zone without using imported raw materials or components when they are imported into the domestic market.
- Goods temporarily imported for re-export or goods temporarily exported for re-import within a certain period of time, including:
- Non-commercial goods: samples, pictures, videos, models instead of samples; advertisement publications in small quantities.
- Imports as fixed assets of an entity eligible for investment incentives as prescribed by regulations of law on investment.
- Plant varieties; animal breeds, fertilizers, pesticides that cannot be domestically produced as prescribed by competent authority.
- Raw materials and components which cannot be domestically manufactured and are imported serving the manufacturing of investment projects eligible for investment incentives or in an extremely disadvantaged area prescribed by regulations of law on investment, high technology enterprises, science and technology enterprises, science and technology organizations are exempt from import duties for 05 years from the commencement of manufacture.
+ The exemption of import duties specified in this Clause does not apply to mineral extraction projects; projects for manufacture of products where total value of natural resources or minerals plus energy costs makes up at least 51% of the product price; projects for manufacture or sale of goods/services subject to special excise tax.
- Raw materials and components which cannot be domestically manufactured of investment projects for manufacture or assembly of medical equipment given priority shall be exempt from import duties for 05 years from the commencement of manufacture.
- Imports serving petroleum activities.
- Shipbuilding projects and shipyards eligible for incentives as prescribed by regulations of law on investment shall have tax exempted.
- Imported machinery, equipment, raw materials, supplies, components, parts, spare parts serving money printing and mincing.
- Imported raw materials, supplies, components serving that cannot be domestically produced serving manufacture of information technology products, digital contents, software.
- Exports and imports serving environmental protection, including:
+ Imported machinery, equipment, equipment, tools, supplies that cannot be domestically produced serving collection, transport, treatment wastewater, wastes, exhaust gases, environmental monitoring and analysis, production of renewable energy, treatment of environmental pollution, response to environmental emergencies;
+ Exports that are products of waste recycling and treatment.
- Imports directly serving education that cannot be domestically produced.
- Imported dedicated machinery, equipment, components, supplies that cannot be domestically produced, scientific materials serving scientific research, technological development, technological cultivation, cultivation of science and technology enterprises and technological innovation.
- Imported dedicated products directly serving national defense and security, the vehicles among which must be those that cannot be domestically produced.
- Exports and imports serving assurance of social security, recovery from disasters, epidemics, and other special situations.
What are the procedures for tax exemption in Vietnam?
Pursuant to the provisions of Clause 3, Article 31 of Decree 134/2016/ND-CP (amended by Clause 14, Article 1 of Decree 18/2021/ND-CP) on the procedures for tax exemption in Vietnam as follows:
- The taxpayer shall determine and declare the amount of duty-free goods and tax exempted (except duties on goods imported or exported for processing by the hirer) while following customs procedures and take responsibility for such declaration.
- The customs authority where customs procedures are followed shall examine the declaration and applicable regulations to decide the grant of duty exemption.
If imported goods are not eligible for duty exemption as declared, the taxpayer shall have to pay duties and fines (if any).
- Electronic data processing system shall deduct the quantity of imports or exports written on the duty-free list.
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