Instructions for determining the HS code of imported goods that are not eligible for VAT reduction

The General Department of Customs issued Official Letter 642/TCHQ-TXNK dated February 25, 2022 on declaring VAT rates, determining names and applying HS codes of imported goods not eligible for tax reduction according to Decree 15/ 2022/ND-CP .

Instructions for determining the HS code of imported goods that are not eligible for VAT reduction

Instructions for determining the HS code of imported goods that are not eligible for VAT reduction (Illustration image)

Accordingly, the General Department of Customs guides the determination of goods not eligible for VAT reduction in column 10, Appendix I, column 10, Part A, Appendix III, and column 4, Part B, Appendix III as follows:

1. Imported goods that are not eligible for VAT reduction are goods that satisfy the following conditions:

(i) There is a product name mentioned in column 8 "product name" and a description of the product's content in column 9 "content" (in case there is no description of content in column 9, the product name shall apply). in column 8) of Appendix I, Part A of Appendix III or in column 3 "goods" in Part B of Appendix III;

(ii) Having HS codes specified in Chapters (02 digits), Groups (04 digits), Subheadings (06 digits) and items (08 digits) mentioned in column 10 of Appendix I, column 10 of Part A. Appendix III, column 4, part B, Appendix III.

It is determined as follows:

- If in column 10 of Appendix I, column 10 of Part A of Appendix III, and column 4 of Part B of Appendix III, only the HS Chapter number is indicated, all goods in that Chapter that satisfy the conditions (i) above are goods. Imports are not exempt from VAT.

- If in column 10 of Appendix I, column 10 of Part A of Appendix III, and column 4 of Part B of Appendix III, the Chapter number and detail of Group number are stated, all goods belonging to that Group satisfy the conditions (i) above. are imported goods that are not eligible for VAT reduction.

- If in column 10 of Appendix I, column 10 of Part A of Appendix III, and column 4 of Part B of Appendix III, the Chapter number, Group number and details of the Subheading number are specified, all goods belonging to that Subheading shall satisfy the conditions. (i) above are imported goods that are not eligible for VAT reduction.

- If column 10 of Appendix I, column 10 of Part A of Appendix III, and column 4 of Part B of Appendix III indicate Chapter number, Group number, Subheading and item code details according to 8 digits, all goods belonging to 08-digit HS code that meets the conditions (i) above are imported goods that are not eligible for VAT reduction.

2. For imported goods that are not eligible for VAT reduction, they are goods with the product name stated in column 8 "product name" and a description of the product's content in column 9 "content" (in case there is no If the content is described in column 9, then the product name in column 8) of Appendix I, Part A of Appendix III or in column 3 "goods" in Part B of Appendix III, with HS code symbol (*):

Based on the actual imported goods, the list of export and import goods Vietnam promulgated together with Circular  65/2017/TT-BTC and Circular 09/2019/TT-BTC to declare code HS 08 digits on the customs declaration and is imported goods not eligible for VAT reduction.

Note : In the case of goods specified in Appendix I and Appendix III, the HS codes are defined as:

- Chapter (02 digits),  without detailing  groups (04 digits), subheadings (06 digits) or codes (08 digits), all 08-digit product codes of that chapter shall be subject to 10% VAT. ;

- Chapters (02 digits),  with details up to  heading (04 digits),  without details  of subheadings (06 digits) or codes (08 digits), all 08-digit product codes belonging to that group shall apply. VAT 10%;

- Chapters (02 digits),  with details up to  subheadings (06 digits),  without detailing  codes (08 digits), the whole and 08-digit rows of that subheading shall be subject to 10% VAT.

- Chapter (02 digits),  with details up to  8 digits, the code of 08 digits will apply 10% VAT.

Eg:

In case the row has the row name "Plastic in primary form" (column 8), the HS code (column 10) is 39, with details of HS code to group of 04 digits, from heading 39.01 to 39.13 and code 3914.00. 00, all 08-digit product codes of groups 39.01 to 39.13 and code 3914.00.00 will be subject to 10% VAT, the remaining 4-digit groups of Chapter 39 will apply VAT of 8%.

(Source: Official Letter 521/TCHQ-TXNK dated February 18, 2022; Official Letter 642/TCHQ-TXNK dated February 25, 2022)

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