TAX POLICY FOR IMPORT AND EXPORT GOODS

Tax is a mandatory contribution of legal entities and natural persons to the state according to the level and time limit prescribed by law to be used for the common purpose of the entire society. Learn about import and export tax policies with DOLPHIN Company !

1. General overview:

• Tax declaration principles: Tax preparers declare, calculate, pay, and are responsible for themselves.
• Tax calculation time: According to Article 35 of Circular No. 38/2015/TT-BTC , that is the date of registration of the customs declaration. In case the taxpayer declares and calculates tax on a paper customs declaration before the date of registration of the customs declaration, but the exchange rate is different from the exchange rate applied at the time of registration of the customs declaration, the Customs authority shall carry out this procedure. Recalculate the tax payable according to the exchange rate applied at the time of declaration registration.
• Taxable exchange rate: The exchange rate between Vietnamese dong and foreign currency used to determine taxable value is the foreign currency exchange rate purchased by transfer from the Head Office of Joint Stock Commercial Bank for Foreign Trade of Vietnam. at the end of the day of the preceding Thursday or the end of day exchange rate of the working day immediately preceding the Thursday (in case Thursday is a holiday or day off). This exchange rate is used to determine the tax rate for customs declarations registered during the week.
• Tax payment deadline: The latest tax payment deadline is the last day of tax declaration submission (immediate tax payment). Tax must be paid before customs clearance and release of goods. If guaranteed, the tax payment deadline is the maximum guarantee period of 30 days. Note: Enterprises still have to pay late payment tax from the date of customs clearance and release of goods.

2. Types of taxes, taxable objects, non-taxable objects & tax calculation method for each type

2.1. Export tax, import tax

Taxable objects ( Article 2 of Law on Import-Export Tax No. 107/2016/QH13, 2016 ):

1. Goods exported and imported through Vietnam's border gates and borders;
2. Goods are brought from the domestic market into the non-tariff zone and from the non-tariff zone into the domestic market
3. On-site export and import goods and export and import goods of enterprises exercising export rights, import rights and distribution rights.

Percentage tax calculation method: is the determination of tax as a percentage (%) of the taxable value of exported and imported goods.

Absolute tax calculation method: is the determination of a certain tax amount on a unit of exported or imported goods. Number of units of each item actually exported and imported. The absolute tax rate is the amount set per unit of goods.

Export tax amount, Goods quantity, Tax amount

Import payable = actual export x tax calculated

e/v of absolutely imported goods.

Subjects not subject to import and export tax: According to Clause 4, Article 2 of Law on Import-Export Tax No. 107 :

1. Goods in transit, transshipment, and transshipment;
2. Humanitarian aid goods, non-refundable aid goods;
3. Goods exported from non-tariff zones to foreign countries; Goods imported from abroad into the non-tariff zone and used only in the non-tariff zone; goods moved from one non-tariff zone to another;
4. The oil and gas portion is used to pay natural resources taxes to the State when exported.

Subjects exempted from import and export tax: Article 16, Law on Import-Export Tax No. 107:

1. Exported and imported goods of foreign organizations and individuals enjoy privileges and immunities in Vietnam within norms consistent with international treaties to which the Socialist Republic of Vietnam is a member; Goods within the duty-free baggage standards of people entering or exiting the country; imported goods for sale at duty-free shops.
2. Movable assets, gifts, gifts within the norm from foreign organizations and individuals to Vietnamese organizations and individuals or vice versa..
3. Goods traded and exchanged across borders by border residents are on the List of goods and within the norms to serve the production and consumption of border residents.
4. Goods are exempt from export tax and import tax according to international treaties to which the Socialist Republic of Vietnam is a member.
5. Goods with a value or tax payable below the minimum level.
6. Raw materials, supplies, and components imported for processing export products; imported finished products to attach to processed products; processed products for export.
7. Raw materials, supplies, and components imported to produce exported goods.
8. Goods produced, processed, recycled, and assembled in the non-tariff zone do not use raw materials and components imported from abroad when imported into the domestic market.
9. Goods temporarily imported for re-export or temporarily exported for re-import within a certain period of time.
10. Goods are not intended for commercial purposes in the following cases: sample goods; photos, films, models as substitutes for samples; Small quantity advertising publications.
11. Goods imported to create fixed assets of subjects entitled to investment incentives according to the provisions of investment law.
12. Type of tree; livestock breeds; Fertilizers and pesticides cannot be produced domestically and must be imported according to regulations of competent state management agencies.
13. Raw materials, supplies, and components that cannot be produced domestically are imported for production of investment projects in the list of industries and occupations with special investment incentives or in areas with extremely difficult socio-economic conditions. According to the provisions of law on investment, high-tech enterprises, science and technology enterprises, science and technology organizations are exempted from import tax for a period of 05 years, from the start of production. .
14. Raw materials, supplies, and components imported that cannot be produced domestically in investment projects to produce and assemble medical equipment are prioritized for research and manufacturing and are exempt from import tax for a period of 5 years. , since the start of production.
15. Imported goods to serve oil and gas activities.
16. Shipbuilding projects and facilities are on the list of preferential industries and trades according to investment laws.
17. Imported machinery, equipment, raw materials, supplies, components, parts and accessories serving printing and minting activities.
18. Imported goods are raw materials, supplies, and components that cannot be produced domestically and can directly serve the production of information technology products, digital content, and software.
19. Export and import goods to protect the environment.
20. Specialized imported goods that cannot be produced domestically can directly serve education.
21. Imported goods are specialized machinery, equipment, spare parts, and supplies that cannot be produced domestically, specialized scientific documents, books, and newspapers used directly for scientific research, technological development, and scientific research. Developing technology incubation activities, science and technology business incubation, and technology innovation.
22. Specialized imported goods directly serve security and national defense, in which specialized means of transport must be types that cannot be produced domestically.
23. Goods exported and imported to serve social security, overcome the consequences of natural disasters, disasters, epidemics and other special cases.
24. The Government regulates this Article in detail.

2.2. Special consumption tax

Concept: Special consumption tax is a tax levied on the act of producing and importing goods subject to special consumption tax and on providing services subject to special consumption tax.

Subjects subject to tax: ( Article 2 of the Law on Special Consumption Tax ): for Goods:

1. Cigarettes, cigars and other products from tobacco plants used for smoking, snorting, chewing, sniffing and sucking;
2. Alcohol;
3. Beer;
4. Cars with less than 24 seats, including cars that transport both people and goods with two or more rows of seats,
5. Two-wheeled motorbikes and three-wheeled motorbikes with cylinder capacity over 125cm3;
6. Airplanes, yachts;
7. Gasoline of all kinds,
8. Air conditioner capacity of 90,000 BTU or less; i) Cards; k) Votive paper and votive goods.

- Subjects not subject to tax: Article 3 of the Law on Special Consumption Tax

1. Goods directly exported by manufacturing or processing establishments or sold or entrusted to other business establishments for export;
2. Imported goods include:

Humanitarian aid and non-refundable aid; gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, people's armed units , gifts and gifts for individuals in Vietnam according to the Government's regulations;

Goods transported in transit or via Vietnam's border gates and borders, and goods transshipped according to Government regulations;

Goods temporarily imported for re-export and temporarily exported for re-import do not have to pay import tax or export tax within the time limit prescribed by the law on export tax and import tax;

Belongings of foreign organizations and individuals according to diplomatic immunity standards; Carry-on goods within duty-free baggage standards; imported goods for tax-free sale according to the provisions of law;

3. Aircraft, yachts used for transport of goods, passengers, tourists, and aircraft used for national defense and security purposes;
4. Ambulance cars; cars transporting prisoners; funeral cars; Cars designed with both seating and standing can carry 24 people or more; Cars running in amusement, entertainment, and sports areas that are not registered for circulation and do not participate in traffic;
5. Goods imported from abroad into non-tariff zones, goods from the domestic market sold into non-tariff zones and used only in non-tariff zones, goods traded between non-tariff zones, except vehicles Passenger cars with less than 24 seats.

Tax calculation method: Special consumption tax = (Quantity x Import tax price x Special consumption tax rate). Import tax calculation price = Unit price + import tax + Safeguard tax (if any) + Anti-dumping tax (if any). Tax rate: Refer to Article 7 of the Law on Special Consumption Tax.

2.3. Environmental Protection tax

Environmental protection tax is an indirect tax, collected on products and goods (hereinafter referred to as goods) that when used cause negative impacts on the environment. The absolute tax rate is the tax rate determined by the amount calculated per unit of taxable goods.

Objects subject to environmental protection tax: Subjects subject to tax ( Article 3 of the Law on Environmental Protection Tax )

1. Gasoline, oil, grease
2. Coal,
3. Hydro-chloro-fluoro-carbon (HCFC) solution.
4. Plastic bags are taxable.
5. Herbicides are of a restricted use type.
6. Termiteicides are of a restricted use type.
7. Forest product preservatives are restricted in use.
8. Warehouse disinfectants are of a restricted use type.
9. In case it is deemed necessary to add other taxable subjects to suit each period, the National Assembly Standing Committee will consider and regulate.

Subjects not subject to tax (Article 4 of the Law on Environmental Protection Tax)

1. Goods transported in transit or border gate of Vietnam according to the provisions of law,
2. Goods temporarily imported and re-exported within the time limit prescribed by law;
3. Goods directly exported by production establishments or entrusted to export business establishments for export, except in cases where organizations, households or individuals purchase goods subject to environmental protection tax to export.

Tax calculation method: Environmental protection tax = Quantity x Absolute tax rate.

2.4. Value Added Tax (VAT)

Concept: Value added tax is a tax calculated on the added value of goods and services arising during the process of production, circulation and consumption .

Subjects subject to VAT: Subjects subject to value added tax (VAT) are goods and services used for production, business and consumption in Vietnam (including goods and services purchased from organizations, individuals abroad).

Objects not subject to VAT: Objects not subject to value added tax specified in Article 5 of the 2008 Value Added Tax Law (amended in 2013, 2014, 2016) include the following goods:

• Cultivation, livestock, aquaculture and fishing products that have not been processed into other products or have only undergone normal preliminary processing by self-producing and fishing organizations and individuals for sale and at the import stage.
• Products are livestock breeds and plant breeds, including breeding eggs, breeding animals, seedlings, seeds, semen, embryos, and genetic material.
• Fertilizer; specialized machinery and equipment serving agricultural production; offshore fishing vessels; Cattle, poultry and other pet food.
• Salt products are produced from sea water, natural rock salt, refined salt, and iodized salt, the main ingredient of which is sodium chloride (NaCl).
• Publishing, importing, distributing newspapers, magazines, specialized newsletters, political books, textbooks, textbooks, legal text books, scientific and technical books, books printed in ethnic minority languages and propaganda pictures, photos, posters, including in the form of audio or video tapes or discs, or electronic data; money, print money.
• Machinery, equipment, spare parts, and supplies that cannot be produced domestically and need to be imported for direct use in scientific research and technological development activities; machinery, equipment, spare parts, specialized means of transport and supplies that cannot be produced domestically and need to be imported to conduct search, exploration and development of oil and gas fields; Aircraft, drilling rigs, and ships that cannot be produced domestically need to be imported to create fixed assets of the enterprise or rented from foreign countries to use for production, business, lease, or sublease.
• Weapons and equipment specifically used for national defense and security.
• Imported goods in case of humanitarian aid or non-refundable aid; gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, people's armed units ; gifts and gifts for individuals in Vietnam according to the Government's regulations; belongings of foreign organizations and individuals according to diplomatic immunity standards; Carry-on goods within duty-free baggage standards.
• Goods and services sold to foreign organizations and individuals, international organizations for humanitarian aid and non-refundable aid to Vietnam.
• Goods transshipped or transited through Vietnamese territory; temporarily imported and re-exported goods; temporarily exported and re-imported goods; imported raw materials to produce and process export goods according to production and export processing contracts signed with foreign parties; Goods and services are traded between foreign countries and non-tariff zones and between non-tariff zones.
• Gold is imported in bars and pieces that have not been processed into fine arts, jewelry or other products.
• Exported products are exploited resources and minerals that have not been processed into other products; Exported products are goods processed from natural resources and minerals with the total value of natural resources and minerals plus energy costs accounting for 51% or more of the product's cost price.
• Artificial products used to replace body parts of sick people; crutches, wheelchairs and other specialized equipment for disabled people.
• Goods and services of business households and individuals with annual revenue of one hundred million VND or less.
• Imported goods that are not subject to VAT at the import stage, if the purpose of use is changed, must declare and pay VAT to HQ where the declaration is registered. The time to calculate VAT is the time of change of purpose of use.

VAT calculation method : VAT calculation price is (Unit price + Import tax (if any) + Special consumption tax (If any) + Environmental protection tax (If any) + Additional import tax (if any))*Tax rate.

2.5. Additional import tax

Additional import taxes(Article 12,13,14 Tax Import & export Law):

• Self-defense tax
• The antidumping duty
• Anti-subsidy tax.

How to calculate additional import tax:

Amount of self-defense tax, anti-dumping tax, anti-subsidy tax = Quantity x Import tax price x Tax rate of each item.

Above is an article clarifying the tax policy on import and export goods . In addition, to update good articles about import-export or ship freight rates; train schedule. Customers can follow the fanpage to be updated with the latest articles.

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