General Department of Customs guides to solve problems related to tax refund in Vietnam in Official Letter 953/HQTPHCM-TXNK in 2022?
In which cases will import tax refund in Vietnam and not pay export tax?
According to Point c, Clause 1, Article 19 of the 2016 Law on Import and Export Taxes, the following provisions are made:
“Article 19. Tax refund
1. Tax refund cases:
...
c) Taxpayers who have paid import tax but imported goods that must be re-exported will be refunded import tax and not have to pay export tax;”
Pursuant to Clause 1, Article 34 of Decree 134/2016/ND-CP (amended by Clause 17, Article 1 of Decree 18/2021/ND-CP) as follows:
“Article 34. Tax refund for imported goods subject to re-export
1. Imported goods for which import tax has been paid but must be re-exported are refunded and not subject to export tax, including:
a) Goods imported but must be re-exported abroad include export to the goods owner, export of imported goods abroad or exported to a non-tariff zone for use in a non-tariff zone.
The re-export of goods must be made by the original importer or by the person authorized by the original importer to entrust the export;
The re-export of goods must be made by the original importer or by the person authorized by the original importer to entrust the export;
b) Imported goods sent by overseas organizations or individuals to organizations and individuals in Vietnam via postal service and international express delivery service have paid tax but cannot be delivered to the consignee. goods, must be re-exported;
c) Imported goods have paid tax and then sold to vehicles of foreign firms on international routes through Vietnamese ports and to Vietnamese vehicles on international routes according to regulations;
d) Imported goods for which import tax has been paid but are still in storage at the border gate and under the supervision of the customs authority may be re-exported abroad.
Taxpayers are responsible for making an accurate and truthful declaration on the customs declaration about re-exported goods being previously imported goods; information on the number, date of the contract, the name of the partner purchasing the goods.
The customs authority is responsible for checking the taxpayer's declared content, clearly stating the inspection results to serve the tax refund settlement."
Accordingly, the cases mentioned above will be refunded import tax and not have to pay export tax according to current legal regulations.
General Department of Customs guides to solve problems related to tax refund in Vietnam in Official Letter 953/HQTPHCM-TXNK in 2022?
In case goods are exported and then re-imported, are they eligible for tax refund in Vietnam?
Pursuant to Point b, Clause 1, Article 19 of the 2016 Law on Import and Export Taxes provides as follows:
“Article 19. Tax refund
1. Tax refund cases:
...
b) Taxpayers who have paid export tax but exported goods that must be re-imported will be refunded export tax and not have to pay import tax;”
The content of this regulation has been concretized by Clause 1, Article 33 of Decree 134/2016/ND-CP as follows:
“Article 33. Tax refund for exported goods subject to re-import
1. Exported goods for which export tax has been paid but must be re-imported, which are eligible for export tax refund and are not subject to import tax, include:
a) Goods that have been exported but must be re-imported into Vietnam;
b) Exported goods sent by organizations or individuals in Vietnam to overseas organizations or individuals through postal services and international express delivery services have paid tax but cannot be delivered to the consignee. goods, must be re-imported.
Taxpayers are responsible for making an accurate and truthful declaration on the customs declaration about re-imported goods being previously exported goods; information on the number, date of the contract, and the name of the partner purchasing the goods, in case there is a contract for the sale of goods.
The customs authority is responsible for checking the taxpayer's declared content, clearly stating the inspection results to serve the tax refund settlement."
Thus, when falling into one of the cases specified above, they will not have to pay import tax and receive a refund of export tax.
The latest guidance of the General Department of Customs on tax refund in Vietnam problems?
On June 7, 2022, the General Department of Customs issued Official Letter 2101/TCHQ-TXNK in 2022 guiding on tax refund problems and sent to Ho Chi Minh City Customs Department. According to the content of this Official Dispatch, the General Department of Customs made the following comments:
“Suggest the Customs Department of Ho Chi Minh City. Ho Chi Minh City, based on the Law on Import Tax and Export Tax No. 107/2016/QH13, Decree No. 134/2016/ND-CP dated September 1, 2016, Decree No. 18/2021/ND-CP dated September 11, 2016. 3/2021 and relevant legal documents, study the instructions in Official Dispatch No. 1185/TCHQ-TXNK dated April 6, 2022 of the General Department of Customs to strictly comply with regulations. In case of problems, request the Customs Department of Ho Chi Minh City. Ho Chi Minh City General Department of Customs summarizes, reports and proposes handling direction to the General Department of Customs for consideration and implementation guidance."
Thus, the settlement of import and export tax refund in Vietnam problems will be based on the 2016 Import and Export Tax Law, Decree 134/2016/ND-CP and relevant documents to complete the refund. import and export tax for taxpayers.
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