Vietnam: What is the report form on tax calculation of materials and supplies requested for import duty refund?
- What are the goods initially imported for business operation but eventually used for the manufacture of domestic exports in Vietnam?
- What is the report form on tax calculation of materials and supplies requested for import duty refund in Vietnam?
- What are the regulations on tax declaration in case goods initially imported for business operation but eventually used for the manufacture of domestic exports are eligible for import duty refund in Vietnam?
What are the goods initially imported for business operation but eventually used for the manufacture of domestic exports in Vietnam?
Pursuant to Clause 2, Article 36 of Decree 134/2016/ND-CP on imports eligible for import duty refund as follows:
Refund of duties on goods initially imported for business operation but eventually used for the manufacture of domestic exports
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2. Import duties on the following imports are refundable:
a) Raw materials, supplies (including those for the manufacture of packages of exports), components, and semi-finished products imported and incorporated into the exports or used during the manufacture of exports without being incorporated into the exports;
b) Imported finished products that are attached on exports or packed with exports as a whole;
c) Components and parts imported for repair of exports under warranty.
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According to the above regulations, import duties on the following goods initially imported for business operation but eventually used for the manufacture of domestic exports shall be refundable:
- Raw materials, supplies (including those for the manufacture of packages of exports), components, and semi-finished products imported and incorporated into the exports or used during the manufacture of exports without being incorporated into the exports;
- Imported finished products that are attached to exports or packed with exports as a whole;
- Components and parts imported for the repair of exports under warranty.
What is the report form on tax calculation of materials and supplies requested for import duty refund in Vietnam?
The report form on tax calculation of materials and supplies requested for import duty refund in Vietnam is Form No. 10 of Appendix VII issued together with Decree 18/2021/ND-CP as follows:
Download the report form on tax calculation of materials and supplies requested for import duty refund in Vietnam: here
What are the regulations on tax declaration in case goods initially imported for business operation but eventually used for the manufacture of domestic exports are eligible for import duty refund in Vietnam?
First of all, goods initially imported for business operation but eventually used for the manufacture of domestic exports are determined to be eligible for import duty refund on the basis specified in Clause 3, Article 36 of Decree 134/2016/ND-CP as follows:
Refund of duties on goods initially imported for business operation but eventually used for the manufacture of domestic exports
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3. Basis for determination of eligibility for duty exemption:
a) The manufacturer of exports has a factory where exports are manufactured in Vietnam; owns or has the right to use machinery and equipment at the factory which is suitable for the raw materials, supplies and components imported for manufacture of exports;
b) The value or quantity of imported raw materials, supplies and components on which import duties are refundable is the actual value or quantity of raw materials, supplies and components used for the manufacture of the products that are exported in reality;
c) The exported products are declared as domestic exports;
d) The manufacturer directly imports goods and exports the products or authorizes another entity to do so.
The taxpayer shall provide truthful information about the exports derived from the imported goods on the customs declaration.
According to the above regulations, based on the bases for determining goods eligible for tax refund, taxpayers must make customs declarations about exported products manufactured from previously imported goods.
Specifically, in Official Dispatch 347/TCHQ-TXNK in 2023 of the General Department of Customs guiding similar cases as follows:
Pursuant to column No. 2, form No. 10 - Report on tax calculation of materials and supplies requested for import duty refund in Appendix VII issued together with Decree 18/2021/ND-CP dated March 11, 2021 of the Government stipulating the declaration of the number and date of occurrence of import declarations.
In case goods initially imported for business operation but eventually used for the manufacture of domestic exports are eligible for import duty refund as prescribed in Article 36 of Decree 134/2016/ND-CP, when carrying out procedures for exporting products manufactured from previously imported goods, the customs declarant writes "export products manufactured from previously imported goods" in the "Notes Section" box of the electronic customs declaration or "Other notes" box on the physical customs declaration and does not have to declare in detail the list of imported goods declarations on the product export declaration. For the detailed list of imported goods declarations the customs, declarant makes the declaration in column No. 2 of the Report on tax calculation of materials and supplies requested for import duty refund according to form No. 10 of Appendix VII issued together with Decree 18/2021/ND-CP.
Thus, in case goods initially imported for business operation but eventually used for the manufacture of domestic exports are eligible for import duty refund, when carrying out procedures for exporting products manufactured from previously imported goods, the customs declarant writes "export products manufactured from previously imported goods" in the "Notes Section" box of the electronic customs declaration or "Other notes" box on the physical customs declaration and does not have to declare in detail the list of imported goods declarations on the product export declaration.
For the detailed list of imported goods declarations the customs, declarant makes the declaration in column No. 2 of the Report on tax calculation of materials and supplies requested for import duty refund according to form No. 10 of Appendix VII issued together with Decree 18/2021/ND-CP.
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