In what cases are portable goods exempted from import taxes in Vietnam?

Which subjects are subject to import tax in Vietnam?

Based on Article 2 of the Law on Export and import duties 2016, the following subjects are subject to import tax:

- 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.

- 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.

In what cases are portable goods exempted from import taxes in Vietnam? (Image from the Internet)

In what cases are portable goods exempted from import taxes in Vietnam? 

Based on Article 16 of the Law on Export and import duties 2016, tax exemption is as follows:

Tax exemption

1. 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.

2. Personal belongings, gifts from foreign entities to Vietnamese entities and vice versa within the tax-free allowance.

If the quantity or value of personal belongings or gifts exceeds the tax-free allowance, the excess amount or value shall be taxed, unless the recipient is an entity funded by state budget and permitted by a competent authority to receive them or they are meant to serve humanitarian or charitable purposes.

3. 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 that are purchased or transported within the tax-free allowance but do not serve the manufacturing or consumption by border residents, exports and imports of foreign traders permitted to be sold at bordering markets shall be taxed.

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According to regulations in Vietnam, imported goods to Vietnam are subject to various taxes, such as import tax, value-added tax, special consumption tax, etc.

However, if the tax-free goods fall into one of the following cases, they will be exempt from import tax:

- Goods granted diplomatic immunity and privileges;

- Luggage within the tax-free allowance of inbound and outbound passengers; imports to be sold at duty-free shops.

- 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.

- Materials, supplies, components imported for manufacture of exports. products.

- 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

- Non-commercial goods

- 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.

- 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 from:

+ Imports that constitute fixed assets of the shipyard;

+ Imported machinery, equipment, raw materials, supplies, components, semi-finished products serving shipbuilding that cannot be domestically produced.

- 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.

- 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.

When is import tax refunded in Vietnam?

Based on Article 19 of the Law on Export and import duties 2016, import tax is refunded in the following cases:

- Any taxpayer who has paid export duty or import duty but has no exports or imports, or the quantity of exports or imports is smaller than the quantity on which duty is paid;

- Any taxpayer who has paid export duty but the exports has to be re-imported shall receive a refund of export duty and does not have to pay import duty;

- Any taxpayer who has paid import duty but the imports has to be re-exported shall receive a refund of import duty and does not have to pay export duty;

- Any taxpayer who has paid tax on goods imported to serve manufacture or business operation and they have been used for manufacture of exports and the products are already exported;

- Any taxpayer who has paid tax on machinery, equipment, tools, vehicles of organizations and individuals that are permitted to be temporarily imported for re-export, except for those rented to execute investment projects, construction and installation, manufacture, when they are re-exported to abroad or exported to a free trade zone.

Best Regards!