Environmentally friendly mini electric cars are not exempt from import tax in Vietnam

Are goods exported or imported for environmental protection eligible for import or export tax exemption?

Pursuant to Clause 19, Article 16 of the 2016 Law on Import and Export Taxes, the provisions on import and export tax exemption are as follows:

Goods imported or exported for environmental protection, including:

- Specialized machinery, equipment, vehicles, tools and supplies imported at home that cannot be produced for collection, transportation, treatment and processing of waste water, waste, emissions, monitoring and distribution environmental analysis, renewable energy production; handling environmental pollution, responding to and handling environmental incidents;

- Exported products are produced from recycling and waste treatment activities.

Environmentally friendly mini electric cars are not exempt from import tax in Vietnam

Thus, goods imported or exported to protect the environment according to the above regulations will be exempt from import and export tax.

Are eco-friendly mini electric cars eligible for tax exemption?

- Pursuant to Clause 10, Article 16 of the Law on Import Tax and Export Tax 2016 stipulates tax exemption for goods for non-commercial purposes in the following cases: Sample goods; Photo, film, replacement models for samples; small quantity advertising.

- Pursuant to Clause 19, Article 16 of the 2016 Law on Import and Export Tax, stipulates tax exemption for exported and imported goods for environmental protection, including:

“a) Special-use machinery, equipment, means, tools and supplies imported at home that cannot be produced for the purpose of collecting, transporting, treating and processing wastewater, garbage, emissions, and monitoring. and environmental analysis, renewable energy production; handling environmental pollution, responding to and handling environmental incidents;

b) Exported products are produced from recycling and waste treatment activities.”

- Pursuant to Clause 4, Section I of the Special Consumption Tax Schedule specified in Article 7 of the Law on Special Consumption Tax 27/2008/QH12, as amended and supplemented in Clause 4, Article 1 of Law No. 70/2014/QH13, Clause 2 of Article 1. 2 Law No. 106/2016/QH13 and Article 8 of Law No. 03/2022/QH15 stipulating the special consumption tax rate (SCT) for cars with less than 24 seats;

- Pursuant to Article 3 of the Law on Value-Added Tax No. 13/2008/QH13 stipulating that goods and services used for production, business and consumption in Vietnam are subject to value-added tax (VAT). , except for the subjects specified in Article 5 of this Law;

Thus, based on the current tax law and the contents of Official Letter 1619/TCHQ-TXNK dated May 6, 2022, there is no basis to handle import tax exemption for 5,000 mini electric vehicles. environment-friendly according to the Company's recommendation. It is recommended that the Company declare and fully pay import tax, excise tax, and value added tax according to regulations.

Khanh Linh

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