Law on Special Consumption Tax 2008: When is the tax refundable?

According to the provisions of Article 8 of the Law on Special Consumption Tax 2008, Article 6 of Decree 108/2015/ND-CP, and Article 7 of Circular 195/2015/TT-BTC, taxpayers of special consumption tax are entitled to a refund of the paid tax in the following cases:

1. Temporarily imported goods for re-exporting include:

First, imported goods that have paid the SCT but are still stored at the port and under the supervision of customs authorities, and are re-exported abroad.

Second, imported goods that have paid the SCT to be delivered or sold to foreign countries through agents in Vietnam; imported goods to be sold to foreign companies' means of transport on international routes through Vietnam's ports and Vietnam’s means of transport on international routes as regulated by the Government of Vietnam.

Third, temporarily imported goods for re-export trading methods, when re-exported, shall be refunded the SCT corresponding to the re-exported goods.

Fourth, imported goods that have paid the SCT but are re-exported abroad shall be refunded the paid SCT for the goods returned abroad.

Fifth, temporarily imported goods for attending fairs, exhibitions, product displays, or for other purposes within a specified period that have paid the SCT, when re-exported, shall be refunded the tax.

Sixth, imported goods that have paid the SCT according to the declaration, but the actual import volume is less than the declared amount; imported goods that are damaged or lost during importation with a valid reason, and have paid the SCT.

Seventh, for imported goods that are not suitable in terms of quality, type according to the contract, import permit (sent wrongly by the foreign consignor), with inspection by competent authorities and confirmation from the foreign consignor, the customs authority shall re-check and confirm the SCT payable, if there is an excess amount of paid tax, it will be refunded, if there is a deficit, it must be paid.

In case of authorized return of goods to the foreign country, the paid SCT for the returned goods shall be refunded.

In case of returning goods to the foreign side within the period not yet subject to import tax payment as per the policy regulations, the customs authority shall check the procedures and execute the non-collection of SCT corresponding to the returned imported goods.

2. Goods imported as raw materials for production and processing for export shall be refunded the SCT corresponding to the quantity of raw materials used for producing the actually exported goods.

The SCT refund, as per the above provisions, applies only to actually exported goods. The procedures, dossiers, sequence, and authority for handling SCT refunds for imported goods shall be executed as per the regulations on handling import tax refunds according to the law on export and import taxes.

3. Production and business establishments settling accounts upon mergers, divisions, separations, dissolutions, bankruptcies, transformation of business forms, transfer, sale, contracting, or leasing of state-owned enterprises with excess paid SCT, the units are entitled to request the tax authorities to refund the excess paid SCT.

4. SCT refund in the following cases:

- Refund according to the decision of a competent authority in accordance with the law;- Refund as per international treaties to which the Socialist Republic of Vietnam is a member;- Refund in cases where the paid SCT is greater than the payable SCT as regulated.

See more: Law on Special Consumption Tax 2008 effective April 1, 2009, Decree 108/2015/ND-CP effective January 1, 2016, and Circular 195/2015/TT-BTC effective January 1, 2016.

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