IMPORT TAX & EXPORT TAX

LOGO
 CONTENT

1 OVERVIEW OF IMPORT TAX & EXPORT

TAX
2 MAIN CONTENT OF IMPORT TAX &

3 EXPORT TAX
LAWS
4
1. OVERVIEW OF IMPORT TAX & EXPORT TAX

▪ Definition

▪ Import tax or export tax levies on

goods imported or exported in the
international trade relationship.
 Characteristics

▪ Is indirect tax
▪ Often regresive in comparison with income
▪ Associated with foreign trade
▪ Affected by international issues.
 LEGAL DOCUMENTS

▪ Vietnam Law 107-2016: Law on Import Tax

and Export Tax
▪ Vietnam Decree 08/2015/ND-CP
▪ Vietnam Decree 134/2016/ND-CP
▪ Vietnam Circular 39/2015/TT-BTC
2. MAIN CONTENT OF IMPORT TAX & EXPORT
TAX LAW

2.1. SCOPE OF APPLICATION

2.2. TAX CALCULATING BASIS

2.3. TAX DECLARATION AND SUBMISSION

2.4. TAX REDUCTION AND REFUND

 2.1. SCOPE OF APPLICATION

▪ Taxable objects
▪ Non-taxable objects
▪ Taxpayers
 Taxable objects

Goods that are

allowed to be
imported or
exported through
Vietnam border &
Goods that are
actually imported
or exported
through Vietnam
border
 Non-taxable objects

▪ Goods transited through Vietnam’s border in

accordance with law.
▪ Humanitarian aid goods; non-refundable aid
goods
▪ Goods exported from non-tarrif zones to
foreign countries; goods imported from foreign
countries into non-tariff zones or goods
exchanged between non-tariff zones.
▪ Goods being oil and gas volumes paid to the
State as royalties upon exportation.
 Taxpayers

1 2 3
Owners of imports Organizations Individuals
or exports importing and carrying imported
exporting goods or exported goods
under others’ upon entry or exit;
consignment or sending or
receiving goods
through Vietnam’s
border
 2.2.TAX CALCULATING BASIS

▪ Goods subjected to duty rate expressed

in percentage (%)
▪ Goods subjected to specific duty
▪ Goods subjected to mixed duty
 Goods subject to duty rate of %

Import Actual
Taxable
tax, import, Duty rate
value per
export tax export (%)
item
payable quantity
QUANTITY OF GOODS IMPORTED OR EXPORTED

▪ Is the actual quantity of goods imported or

exported

▪ Determined using the customs declarations

 Eg.

Company A imported a cargo of 10,000

bottles of wine by maritime transport. During
the time on the ocean, 500 bottles were
broken.
The number of bottles imported written on
the customs declaration form is 9,500.
Which is the quantity used to calculate
import tax payable?
 Taxable value per item

a) Exported goods

▪ Taxable price per item is the export price

at the border (FOB or DAF price)
▪ Does not include international freight (F)
and international insurance fees (I)
 Taxable value per item

b) Imported goods
Taxable value per item is the actual price paid until the
first import border gate – using the following 6
methods in sequence
1. Transaction value method
2. Transaction value method of identical goods
3. Transaction value method of similar goods
4. Deductive value method
5. Computed value method
6. Reasoning method
 IMPORT & EXPORT TAX RATE

a) Exported goods

▪ Specified for each goods item in the

Export Tariff.
▪ The Export Tariff is largely 0%.
 IMPORT & EXPORT TAX RATE

b) Imported goods – 3 types of rate

• Preferential duty rates

1

• Special preferential duty rates

2

• Ordinary duty rates

3 Ordinary Preferential
150%
duty rates duty rates
 Goods subjected to specific duty

Import, Actual
Specific
Export import,
duty per
tax export
unit
payable quantity
TAXABLE PRICES AND EXCHANGE RATES

▪ Taxable price: VND

▪ Exchange rates: the rate of a foreign

currency to be bought in the form of money
transfer that takes place at the head officice
of VCB, which is identified at the end of
FIFTH working day of the preceding week.
2.3. TAX DECLARATION & SUBMISSION

a) Tax declaration
▪ Taxpayers are required to declare import
& export tax on customs declaration
forms.

b) Date of tax computation

▪ Date of customs declaration form
submission
2.3. TAX DELARATION & SUBMISSION

c) Tax submission deadline

+ Duties on exports and imports have to be paid before

customs clearance or release.

+ Where a credit institution provides guarantee for the

amount of tax payable, customs clearance or release shall
be granted. However, late payment interest shall be paid
for the period from the date of customs clearance or
release to the tax payment date in accordance with the
Law on Tax administration. The guarantee period shall not
exceed 30 days from the day on which the customs
declaration is registered.
2.4. TAX EXEMPTION, REDUCTION & REFUND

TAX EXEMPTION
▪ Goods imported for processing for foreign
parties are exempt from import duty; and
processed products exported back to foreign
parties are exempt from export duty.
▪ Goods exported to foreign countries for
processing for Vietnamese parties are exempt
from export duty and when processed products
are re-imported, they are exempt from import
duty on the value of goods exported to foreign
countries for processing under contracts.
Goods imported for processing exported goods

▪ When importing goods

+ Exempt from import tax, not subjected to VAT
▪ When exported processed goods back
+ Exempt from export tax
+ The processed fee is subjected to 0% VAT
▪ When selling processed goods domestically
+ Collect import tax & VAT arrears of imported goods
+ Collect VAT arrears of sold goods.
 Eg. 2

▪ In the current tax period, company A has the following

activities:
- Imported thread fibre from a Japanese company to process
exported fabric for this company. The Import value of thread fibre
at the first import border gate: 180 mil VND.
- The company has used all the fibre to processed 8,000 m
of fabric, the processed fee is 30,000 dong/m. At the processed
deadline, the company has exported back 6,000 m of fabric. The
remaining 2,000 m of fabric has not yet met the required quality
and are sold in domestic market at the price (VAT-exclusive) of
100,000 dong/m.
▪ Import tax rate of thread fibre: 30%; VAT tax rate: 10%
▪ Calculate the amount of import tax and VAT payable of A
 TAX REDUCTION

▪ Imported or exported goods which are

damaged or lost in the course of customs
supervision, which is certified by a
competent assessment agency, might be
considered for duty/tax reduction in
proportion to their actual loss or damage.
 Eg 3.1

▪ In the current tax period, Company X has

imported 1200 bottles of whiskey, the import
value is 500,000 dong/bottle.
▪ In the process of customs procedure and under
the customs supervison, 200 bottles were
completed broken. The remaining 1,000 bottles is
declared and imported as normal.
▪ Import tax rate; 150%; Excise tax rate: 30%; VAT
rate: 10%
Calculate the amount payable of import tax,
Excise tax and VAT.
 Eg 3.2

▪ In the current tax period, Company X has

imported 1200 bottles of whiskey, the import
value is 500,000 dong/bottle.
▪ In the process of customs procedure and under
the customs supervison, most of the bottles were
scratched which made their value decreased by
5%. The 1,200 bottles is declared and imported
as normal.
▪ Import tax rate; 150%; Excise tax rate: 30%; VAT
rate: 10%
Calculate the amount payable of import tax,
Excise tax and VAT.
 TAX REFUND

▪ Imported products of which import tax was

paid; used to produce exported products;
the imported tax paid is refunded in
proportion of actual products exported.
 Tax refund

▪ Any taxpayer who has paid export or

import duty but has no exports or imports,
or the quantity is smaller than the actual
imported or exported quantity.
 Tax refund

▪ Any taxpayer who has paid export duty but

the exports has to be re-imported
▪ Any taxpayer who has paid import duty but
the imports has to be re-exported
 Tax refund

▪ Any taxpayer who has paid tax on

machinery, equipments, tools, vehicles of
organizations and individuals that are
permitted to be temporarilly imported for
re-export.
▪ Except for those rented to execute
investment projects, construction and
installation, manufacture.
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