Measures to recover environmental protection tax debt for petrol and oil traders in Vietnam

Measures to recover environmental protection tax debt for petrol and oil traders in Vietnam (Internet image)

On May 30, 2023, the General Department of Taxation issued Official Dispatch 2124/TCT-QLN on implementing measures to recover outstanding environmental protection tax (BVMT).

Measures to recover environmental protection tax debt for petrol and oil traders in Vietnam

Specifically, the General Department of Taxation proposes that the Tax Departments of the provinces and centrally-run cities (especially the Tax Departments that have the following large debt petroleum businesses: An Giang, Ben Tre, Ca Mau, Can Tho, Dong Nai, Hai Phong, Hau Giang, Kien Giang, Lam Dong, Lang Son, Long An, Nam Dinh, Nghe An, Ninh Binh, Phu Tho, Quang Binh, Quang Nam, Quang Tri, Soc Trang, Thai Binh, Thanh Hoa, Ho Chi Minh City) immediately implement measures to recover the environmental protection tax debt for the following petroleum trading enterprises:

(1) For businesses with debts up to 90 days:

Regularly take measures to urge (calling, texting, emailing, inviting them to work, issuing full notice of tax debt to taxpayers) taxpayers to pay taxes owed to the state budget, not to let tax debt linger, prolong, or limit new debts arising.

(2) For businesses that owe tax for more than 91 days after the payment deadline:

The Tax Department immediately applied measures to coerce money from accounts, block accounts for 100% of enterprises that owe environmental protection tax in the locality.

After the period of application of coercive measures to deduct money from accounts, blockade accounts but not yet collect the full amount of tax owed, the Tax Department will continue to issue a decision on enforcement by stopping the use of invoices.

Or follow up with coercive measures in accordance with the provisions of the Law on Tax Administration and its guiding documents.

The directors of the Tax Departments of the provinces and centrally run cities are responsible before the law if there are large and prolonged tax arrears in the area without resolutely applying urgent and coercive measures according to regulations to recover tax arrears into the state budget.

Types of petrol and oil traders in Vietnam

Major traders in Vietnam include major petrol and oil traders and major petrol and oil producers.

- Major petrol and oil traders are traders that purchase petrol and oil directly from the refineries (or from enterprises that have contracts to exclusively purchase all petrol and oil products from the refineries that do not sell petrol and oil products themselves) or import petrol and oil to supply petrol and oil for their own systems, sell to other petrol and oil traders or export.

Enterprises that have contracts to exclusively purchase all petrol and oil products from the refineries are entitled to export, import petrol and oil products to maintain supply of petrol and oil for major petrol and oil  traders as instructed by the Ministry of Industry and Trade.

- Major petrol and oil producers are those that carry out the process of distillation and refining of crude oil, petrol and oil products, petroleum semi-products, wastes and other materials into petrol and oil products.

- Petrol and oil distributor means a trader that buys petrol and oil from a key trader and, apart from selling petrol and oil at its/his/her petrol and oil retail stations, organizes a system of subsidiary agents or retails petrol and oil through retail franchisees.

- Petrol and oil general agent means a trader that acts as a petrol and oil trading agent and, apart from selling petrol and oil at its petrol and oil retail stations, organizes a system of subsidiary agents for sale of petrol and oil for the principal being a key trader to enjoy remuneration.

- Petrol and oil retail agent means a trader that acts as an agent to retail petrol and oil at retail stations for the principal being a petrol and oil key trader or distributor or general agent to enjoy remuneration.

- Petrol and oil retail franchisee means a trader that is granted a commercial franchise by a petrol and oil key trader or distributor to retail petrol and oil.

- Petrol and oil service providers.

(Article 3 of Decree 83/2014/ND-CP, as amended by Decree 95/2021/ND-CP)

More details can be found in Official Dispatch 2124/TCT-QLN dated May 30, 2023.

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