Currently, which cases are eligible for excise tax refund and deduction? – Yen Xuan (Ninh Thuan, Vietnam)
Article table of contents
Vietnam: Cases of excise tax refund and deduction in 2022 (Source: internet)
1. Cases of excise tax refund in Vietnam
Excise taxpayers may have the paid tax amounts refunded in the following cases:
- Goods temporarily imported for re-export:
+ Imported goods on which excise tax has been paid that are still retained at the border checkpoint under the control of customs authority, and then re-exported;
+ Imported goods on which excise tax has been paid that are intended to be delivered/sold to abroad via agents in Vietnam; imported goods to be sold to foreign vehicles going to Vietnam’s ports or Vietnamese vehicles on international routes as prescribed by law;
+ When temporarily imported goods are re-exported, paid excise tax on the re-exported goods shall be refunded;
+ When imported goods on which excise tax has been paid are re-exported, paid excise tax on the amount of re-exported goods shall be refunded;
+ When goods imported to participate in a fair, exhibition, product introduction, or to be used for a certain period of time are re-exported, excise tax (if any) shall be refunded.
When temporarily imported goods are re-exported by the deadline for paying tax prescribed by regulations of law on export duties and import duties, excise tax on the re-exported goods shall not be paid.
- Goods which are raw materials imported for export production and processing:
With regard to materials imported for manufacturing or processing goods for export, paid excise tax on the amount of materials used for manufacturing exported goods shall be refunded.
The excise tax refund under the above cases is applicable only to actually exported goods.
- Finalization of overpaid tax amounts upon merger, consolidation, separation, split-up. dissolution, bankruptcy, ownership change, enterprise transformation or operation termination;
- Upon issuance of tax refund decisions by competent agencies under law. and cases of excise tax refund under treaties to which the Socialist Republic of Vietnam is a contracting party.
+ Tax refund under a decision of a competent authority as prescribed by the law in Vietnam;
+ Tax refund under an international agreement to which the Socialist Republic of Vietnam is a signatory;
+ Tax refund in case excise tax is overpaidas prescribed by the law in Vietnam.
(Clause 1, Article 8 of Law on Excise Tax 2008, Article 6 of Decree 108/2015/ND-CP)
2. Cases of deduction of excise tax in Vietnam
- Taxpayers who manufacture goods subject to excise tax from materials subject to excise tax may deduct paid excise tax on imported materials from the excise tax payable if they are bought domestically. The amount of deductible excise tax depends on the amount of raw materials used for manufacturing goods that are sold.
- Payers of excise tax on imported goods subject to excise tax (other than gasoline) may deduct excise tax upon importation from total excise tax on goods sold in Vietnam. The amount of deductible excise tax depends on the amount of imported goods subject to excise tax that are sold. The taxpayer may include the amount of non-deductible excise tax in expense when calculating corporate income tax.
- Excise tax shall be deducted when it is declared.
(Clause 2, Article 8 of Law on Excise Tax 2008, Article 7 of Decree 108/2015/ND-CP)
Diem My
