Change the procedures and methods of exemption and refund on the import and export taxes

The professional operation at Customs Sub-Department of Cai Lan port, the Quang Ninh Customs Department. Photo: T.Trang.

Modification of tax exemption procedures and methods

Previously, under the provisions of Circular No. 38/2015/TT-BTC, for the imported goods subject to registration on the list of tax exemptions, the project owner had to register the tax exemption list with the Customs offices. However, at present, according to Article 17 of the Law on Import and Export Duties No. 107/2016/QH13, the taxpayers (project owners) are not required to register the list of tax exemptions for the imported goods, but only to make the procedures for notifying the list of tax exemptions goods which will be imported to the Customs offices.

Regarding the procedures, previously, the taxpayers might register the list by writing copies or the electronic copies with the Customs offices. At present, under the provisions of Clause 3, Article 30 of Decree No. 134/2016/ND-CP, the taxpayers must notify the tax exemption list to the Customs offices via electronic data processing system or by writing copies with Customs offices before the first shipment is imported.

On dossiers to be submitted: Article 16 of Circular No. 39/2018/TT-BTC has amended and supplemented the documents to be submitted in case of notifying the list of goods to be imported to the Customs office.

Previously, the tax exemption process issued in conjunction with Decision 1966/2015/QD-TCHQ only dealt with 3 cases, including: the tax exemption list in paper/ the import declaration in paper; the tax exemption list in paper/ the electronic import Declaration; the electronic tax exemption list/ the electronic import declaration. As such, there had been no regulation for the case of electronic tax exemption list/ the import declaration in paper.

Therefore, in order to ensure the legal basis in the process of implementation and to solve the problems arising in reality, the provisions of the tax exemption process in conjunction with Decision 1966/QD-TCHQ of the General Department of Customs must be amended and supplemented to ensure compliance with the provisions of the Law on Import and Export Duties No. 107/2016/QH13, Decree No. 134/2016/ND-CP, Circular No. 39/2018/TT-BTC.

Accordingly, the process of tax exemption, tax reduction, tax refund, non-tax collection issued in accordance with Decision 1919/QD-TCHQ has amended the order of receipt and assignment of handling the registration dossiers for List of goods subject to the import tax exemption into the order of Notification of List of import tax exemption goods, with supplements to a number of guidelines on amending and adjusting the tax exemption list; Supplemented some guidance for cases of electronic tax exemption lists but not for the import declarations in paper copies; Modified the contents of examination of tax exemption documents in customs clearance; processing tax exemption documents; Checking the use of duty-free imported goods.

Detailed guidance on cases of tax refund, tax non-collection

In the past, in the course of applying the process of tax refund and tax non-collection issued together with Decision No. 1780/QD-TCHQ dated 17th June, 2016 of the General Department of Customs, the Customs of some provinces and cities reflected on some shortcomings and limitations in the process of refunding tax, not collecting taxes.

Specifically, the procedure attached to Decision 1780/QD-TCHQ is merging the tax refund operations with the non-tax collection operation. Therefore, in the past, the Customs Sub-Departments had difficulties to refer to the different documents to determine whether the Customs classify the tax refund documents before issuing non-tax collection decisions during the performance of non-tax collection activities.

Besides, the old procedures had not guided the handling of overpaid tax amounts after the issuance of tax refund decisions yet; not guided clearly the cases of import-export goods for which the Customs offices issued a decision not to collect the taxes due to not having to pay the taxes; not to collect taxes in case of tax refund which the taxpayers had not paid tax yet; not guided the cases of the same export/import shipment arising both for tax exemption and non-tax collection operation; not guided the regulations for tax refund dossiers which were subject to tax refund before, inspection after. In these cases, what were the procedures to implement the inspection at the head office for taxpayers after the tax refund? Which level did it?

Starting from the above mentioned reality, the General Department of Customs amended and supplemented the process of tax refund and non-tax collection in order to ensure all situations arising in reality.

Specifically, the process of tax exemption, tax reduction, tax refund and non-tax collection issued in accordance with Decision 1919/QD-TCHQ guided on the operation of tax refund and non-tax collection for the units to refer easily in the process of implementation.

Guidance on the handling of tax money after issuing a tax refund decision includes: In the case that the taxpayer has no outstanding tax, late payment, fines and other payable amounts, including charges and fees with the Customs offices; In cases where the taxpayers still owe taxes, made late payments, fines and other payable amounts, including charges and fees with the Customs offices. A clear guidance for cases on ways of implementation that the taxpayers require to balance the amount of money reimbursed with the amount of money owed the Customs offices.

In addition, the new procedure also clarifies the cases where the Customs offices issue the decisions not to collect taxes, including: not to collect the export taxes for imported goods which are re-exported or exported to non-tax areas for using there. Not to collect the import taxes for the exported goods which must be re-imported into Vietnam.

To guide clearly the non-tax collection on cases of tax refund, but the taxpayers have not paid tax yet, covering 5 cases:

The export tax shall not be collected for the exported goods subject to export tax guarantee by the credit organizations, but must be re-imported within the guarantee period specified in Article 33 of Decree No. 134/2016/ND-CP;

The import tax shall not be collected for imported goods subject to import tax guarantee, but must re-exported within the guarantee period specified in Article 34 of Decree No. 134/2016/ND-CP;

The import tax shall not be collected for the machinery, equipment, facilities and transport means of the organizations and the individuals permitted for temporary import subject to the import tax guarantee, and they were re-exported within the guarantee period specified in Article 35 of the Decree. 134/2016/ND-CP;

The tax shall not be collected for the imported goods for production and trading, where the products were exported within the guarantee period of credit institutions as stipulated in Article 36 of Decree No. 134/2016/ND-CP;

The tax shall not be collected for the exported, imported goods guaranteed by the credit institutions, because the quantity of exported, imported goods are less than as stipulated in Article 37 of Decree No. 134/2016/ND-CP;

The new procedure also provides the guidance on the case where the same batch of exported / imported goods arise, both for tax refund and non-tax collection operations.