What is the formula to calculate taxable prices of imported goods in 2024 in Vietnam? What is the time for calculating VAT for imported goods in Vietnam?

What is the formula to calculate taxable prices of imported goods in 2024 in Vietnam?

Pursuant to Article 7 of the Circular 219/2013/TT-BTC stipulating taxable prices:

Taxable prices

1. Taxable prices of goods and services sold by taxpayer are VAT-exclusive price. Taxable prices of goods and services subject to special excise tax are the prices inclusive of special excise tax and exclusive of VAT.

Taxable prices of goods and services subject to environmental protection tax are the prices inclusive of environmental protection tax and exclusive of VAT; taxable prices of goods and services subject to both special excise tax and environmental protection tax are the prices inclusive of special excise tax and environmental protection tax but exclusive of VAT.

2. Taxable prices of imported goods are the prices at the border checkpoint (hereinafter referred to as import price) plus (+) import tax (if any) plus (+) special excise tax (if any) plus (+) environmental protection tax (if any). Regulations on taxable prices of imported goods shall be applied to calculation of import prices.

If the goods are eligible for exemption or reduction of import duty, the taxable price is the import price plus (+) import tax payable after reduction or exemption.

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As regulated above, taxable prices of imported goods are determined as follows:

Regulations on taxable prices of imported goods shall be applied to calculation of import prices.

If the goods are eligible for exemption or reduction of import duty

What is the formula to calculate taxable prices of imported goods in 2024 in Vietnam? What is the time for calculating VAT for imported goods in Vietnam? - image from internet

What is the time for calculating VAT for imported goods in Vietnam?

Pursuant to Article 8 of the Circular 219/2013/TT-BTC stipulating the time for calculating VAT for imported goods in Vietnam:

Time for calculating VAT

1. For goods sale, VAT shall be calculated when the ownership or the right to use goods is transferred to the buyer, whether the payment is made or not.

2. For service provision, VAT shall be calculated when service provision is completed or when the invoice for service provision is made, whether the payment is made or not.

For telecommunications services, VAT shall be calculated when comparing the data about telecommunications charge according to the contracts between telecommunications service providers, but not later than 2 months from the month in which the charge is incurred.

3. For electricity and water supply, VAT shall be calculated when the electricity or water consumption is recorded.

4. For real estate trading, construction of infrastructural works, houses for sale or for lease, VAT shall be calculated when money is collected according to the project schedule or the contract. The taxpayer shall declare output VAT incurred in the tax period according to collected amount.

5. For construction and installation, including shipbuilding, VAT shall be calculated when the construction or a work is completed and put into use, Whether the payment is made or not.

6. For imported goods, VAT shall be calculated when the customs declaration is registered.

As regulated above, the time for calculating VAT for imported goods in Vietnam shall be calculated when the customs declaration is registered.

Are goods imported as humanitarian aid or non-refundable aid subject to VAT in Vietnam?

Pursuant to Clause 19 Article 5 of the Law on Value-Added Tax in 2008 stipulating non-taxable objects:

Non-taxable objects

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19. Goods imported as humanitarian aid or non-refundable aid; gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations or peoples armed forces units; donations or gifts for Vietnam-based individuals within the Government-prescribed quotas; belongings of foreign organizations and individuals within diplomatic immunity quotas; and personal effects within duty-free luggage quotas.

Goods and services sold to foreign organizations or individuals or international organizations for use as humanitarian aid, and non-refundable aid to Vietnam.

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As regulated above, goods imported as humanitarian aid or non-refundable aid are not subject to VAT in Vietnam.

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