Vietnam: Exports and imports damaged under customs supervision shall be subject to tax reduction

According to the Law on Export and import duties 2016 of Vietnam, conditions for tax reduction for exports and imports are as follows:

- Damaged or lost under customs supervision;

- Damaged or lost due to objective causes;

- Damage or loss verified by a competent organization.

The level of reduction shall be proportional to the loss of goods. Tax is exempt if the exports or imports are completely damaged or lost.

Persons requesting tax reduction shall submit dossiers to the Sub-department of Customs where customs procedures are carried out as follows:

- Dispatch requesting tax reduction compiled by the taxpayer (Form No. 08 in Appendix VII enclosed with Decree No. 134/2016/ND-CP): 01 original copy;

- 01 certified true copy of the insurance contract or insurance payout notice issued by the insurer (if any) (a confirmation by the insurer is required if the insurance contract does not specify tax indemnification) or the compensation agreement issued by the shipping company in case the damage is caused by the shipping company (if any);

- A confirmation of damage issued by a local authority e.g. confirmation of conflagration issued by the local fire department, confirmation of natural disaster or accident issued by the People’s Committee of the district.

The confirmation must be issued within 30 days from the occurrence of damage;

- Confirmation of loss or damage of goods issued by an assessment service provider.

The confirmation must be issued within 30 days from the occurrence of natural disaster, conflagration or accident.

View details at the Law on Export and import duties 2016 of Vietnam and Decree No. 134/2016/ND-CP of Vietnam’s Government.

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