Cases of excise tax refund in Vietnam

Cases of excise tax refund in Vietnam (Internet image)

1. Tax bases in Vietnam

In Article 5 of the Law on Excise Tax 2008, the tax bases are as follows:

Excise tax bases include the taxed price of a taxable goods or service and the tax rate. The payable excise tax amount is the excise taxed price multiplied by the excise tax rate.

2. Cases of excise tax refund in Vietnam

In Article 7 of Circular 195/2015/TT-BTC, Payers of SET (hereinafter referred to as taxpayers) shall receive a tax refund in the following cases:

2.1. Goods temporarily imported and re-exported in Vietnam

Goods temporarily imported and re-exported, including:

- SET has been paid imported goods still remain at the border checkpoint under customs control, and then they are re-exported.

- SET has been paid on imported goods that are delivered or sold to foreign partners via agents in Vietnam; Imported goods for sale to foreign means of transport on international routes through Vietnam’s ports and Vietnamese means of transport on international routes as prescribed by the government.

- When temporarily imported goods are re-exported, paid SET on the quantity of re-exported goods shall be refunded.

- When imported goods on which SET has been paid are re-exported, paid SET on the quantity of goods re-exported shall be refunded.

- Paid SET on goods imported to attend a fair or exhibition, or for display or serve other purposes for a limited period of time shall be refunded when such goods are re-exported.

- SET has been paid as declared but the actual quantity of imported goods is smaller than the declared quantity; SET has been paid but goods are damaged or lost during importation because of acceptable reasons.

- With regard to imported goods the quality or categories of which are not consistent with the contract or import license on account of the foreign seller, if a competent authority has inspected, the foreign seller has certified, and goods may be imported, the customs authority shall inspect and verify the amount of SET payable. Excess tax shall be refunded; tax arrears shall be fully paid.

If goods maybe re-exported (returned) to the foreign seller, paid SET on the quantity of re-exported goods shall be refunded.

If goods are returned to the foreign seller within the period over which import duties are exempt, the customs authority shall inspect the procedures and cancel SET on the quantity of goods returned.

2.2. Imported goods are materials for manufacturing or processing of goods for export in Vietnam

If imported goods are materials for manufacturing or processing of goods for export, paid SET on the quantity of materials used for manufacturing or processing of goods that have been actually exported shall be refunded.

2.3. Other cases in Vietnam

SET shall be refunded in the following cases:

- The refund is decided by a competent authority.

- Tax refund is required under an international agreement to which Vietnam is a signatory.

- Paid SET is higher than SET payable.

Note:

- Regulations on SET refund specified in Clause 1 and Clause 2 of Article 7 of Circular 195/2015/TT-BTC only apply to goods that have been actually exported; documentation and procedures for refund of SET on imported goods are similar to that for refund of import duties specified in regulations of law on export and import duties.

-  When making a terminal tax statement upon merger, division, separation, dissolution, bankruptcy, ownership transfer, lease of state-owned enterprises that have paid SET excessively, SET refund may be claimed.

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