Vietnam: Which imported goods shall not be subject to special excise tax?

1. Humanitarian aid, grant aid, gifts, including:

- Humanitarian aid and grant aid, including imported goods funded by grant aid approved by a competent authority; humanitarian aid and emergency assistance for recovery from wars, natural disasters, epidemics.

- Gifts of overseas entities for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, the people’s armed forces.

- Gifts for Vietnamese individuals within the allowance imposed by law.

2. Goods transited through Vietnam, including:

- Goods transported from the exporting country to the importing country through Vietnam’s checkpoint without following procedures for import into Vietnam and procedures for export from Vietnam.

- Goods transported from the exporting country to the importing country through Vietnam’s checkpoint and moved to a bonded warehouse without following procedures for import into Vietnam and procedures for export from Vietnam.

- Goods transited through Vietnam’s border checkpoint or border under an International Agreement between Vietnam and another country or between the agencies and representatives authorized by Vietnam’s government and the other country’s government.

- Goods transported from the exporting country to the importing country passing through Vietnam’s checkpoint.

3. If temporarily imported goods are re-exported within the period over which import duties are exempt according to regulations of law on export and import duties, special excise tax on the re-exported goods shall not be paid.

If temporarily exported goods are re-imported within the period over which export duties are exempt according to regulations of law on export and import duties, special excise tax on the re-imported goods shall not be paid.

4. Goods temporarily imported to attend a fair or exhibition and re-exported within the period over which import duties are exempt.

If such goods are not re-exported after the end of the fair or exhibition, special excise tax shall be paid. If the tax authority finds that a taxpayer fails to declare such amount of special excise tax, such tax payer shall incur penalties in addition to paying the tax arrears.

5. Personal belongings of foreign entities given diplomatic immunity according to regulations of law on diplomatic immunity.

6. Hand luggage within the tax-free allowance of Vietnamese people and foreigners when passing through a Vietnam’s checkpoint.

7. Imported goods for sale at tax-free shops as prescribed by law.

More details can be found in Circular No. 195/2015/TT-BTC of the Ministry of Finance of Vietnam, which takes effect from January 01, 2016.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE