Which goods are subject to export tax? What is the basis for calculation of export tax and import tax in Vietnam?
Which goods are subject to export tax in Vietnam?
Pursuant to Article 2 of the Law on Export and import duties 2016, it is stipulated as follows:
Taxed goods
1. Goods exported and imported through Vietnam’s border and border checkpoints.
2. Goods exported from the domestic market into free trade zones; goods imported from free trade zones into the domestic market.
3. Goods indirectly exported-imported; goods exported and imported by enterprises exercising their right to export, import, or distribute.
4. The following goods do not incur export and import duties:
a) Goods in transit;
b) Goods that are humanitarian aid or grant aid;
c) Goods exported from a free trade zone to abroad; goods imported from abroad to a free trade zone and used within such free trade zone; goods transported from one free trade zone to another;
d) Amounts of petroleum used as severance tax paid to the State upon its exportation.
5. The Government shall regulate this Article.
Accordingly, goods subject to export tax include:
- Goods exported and imported through Vietnam’s border and border checkpoints.
- Goods exported from the domestic market into free trade zones; goods imported from free trade zones into the domestic market.
- Goods indirectly exported-imported; goods exported and imported by enterprises exercising their right to export, import, or distribute.
Note: The following goods do not incur export and import duties:
- Goods in transit;
- Goods that are humanitarian aid or grant aid;
- Goods exported from a free trade zone to abroad; goods imported from abroad to a free trade zone and used within such free trade zone; goods transported from one free trade zone to another;
- Amounts of petroleum used as severance tax paid to the State upon its exportation.
Which goods are subject to export tax? What is the basis for calculation of export tax and import tax in Vietnam?
Who are the taxpayers of export tax and import tax in Vietnam?
Pursuant to Article 3 of the Law on Export and import duties 2016 stipulates as follows:
- Owners of exports and imports.
- Entrusted exporters and importers.
- People entering and leaving Vietnam carrying exports or imports, sending or receiving goods through Vietnam’s border and border checkpoints.
- Taxpayers’ guarantors and other entities authorized to pay tax on behalf of taxpayers, including:
+ Customs brokerage agents in case authorized by the taxpayer to pay export and import duties;
+ Providers of postal services or international express mail services paying tax on behalf of taxpayers;
+ Credit institutions or other organizations operating under the Law on credit institutions that provide guarantee or pay tax on behalf of taxpayers;
+ People authorized by goods owners in case goods are gifts of individuals; any luggage sent before or after its owner’s arrival or departure;
+ Any branch of an enterprise authorized to pay tax on its behalf;
+ Other people authorized to pay tax on behalf of taxpayers as prescribed by law.
- Any person who purchases or transports goods within the tax-free allowance applied to border residents which are sold domestically instead of being consumed or used for manufacture; foreign traders permitted to deal in exports and imports at bordering markets as prescribed by law.
- Owners of exports or imports that are initially tax-free but then taxed.
- Other cases prescribed by law.
What is the basis for calculation of export tax and import tax in Vietnam?
Pursuant to Article 5 of the Law on Export and import duties 2016, the basis for calculating import and export tax is specified as follows:
- The amount of export or import duty is determined according to the taxable value and duty rate (%) of each article at the time of tax calculation.
- Export duty rate of each article is specified in the export duty schedule.
Where goods are exported to a country or group of countries or territories having an agreement on concessional export duties with Vietnam, such agreement shall apply.
- Import duty rates include preferential rates, special preferential rates, and ordinary rates as follows:
+ Preferential rates apply to imports originated in any country or group of countries or territories that accord Vietnam most-favored nation treatment; goods that are imported from a free trade zone to the domestic market and originating in a country or group of countries or territories that accord Vietnam most-favored nation treatment;
+ Special preferential rates apply to imports originated in any country or group of countries or territories that have an agreement on special preferential import duties with Vietnam; goods that are imported from a free trade zone to the domestic market and originating in a country or group of countries or territories that have an agreement on special preferential import duties with Vietnam;
+ Ordinary rates apply to imports other than those mentioned in Point a and Point b of this Clause. The ordinary rate is 150% of the preferential rate applied to the corresponding article. In case preferential rate is 0%, the Prime Minister shall decide the application of ordinary rate pursuant to Article 10 of the Law on Export and import duties 2016.
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