Handling administrative fines if failing to declare and pay VAT at the time of on-spot import

VCN - According to current regulations, on-spot importers who fail to declare and pay value-added tax at the time of carrying out the on-spot import of goods for export production will be administratively sanctioned.

Facing the petition of Viet Tien Garment Joint Stock Corporation on the payment of the monetary penalty for not declaring and paying value-added tax when carrying out on-spot import, according to the General Department of Vietnam Customs, the declaration and payment of value-added tax has been clearly specified in legal documents in the field of customs.

Ninh Binh Customs officers review data on enterprises. Photo: H.Nụ
Ninh Binh Customs officers review data on enterprises. Photo: H.Nụ

At Point b, Section 4, Part 2 of Official Dispatch No. 2687/TCHQ-TXNK dated June 1, 2021 of the General Department of Vietnam Customs, instructing that products that are imported on the spot will be registered under another form (not the type of processing), taxpayers use the type code of import business (A11), import business and production (A12) to declare and pay import tax.

In case the on-spot importer has paid import tax on goods for production and brought imported products into the production of exported goods and has actually exported the product to a foreign country or into the non-tariff zone, the amount of paid import tax shall be refunded in accordance with the provisions of Article 36 of Decree 134/2016/ND-CP.

In Point c, Clause 1, STT31 of Official Letter No. 5529/TCHQ-TXNK dated November 24, 2021 of the General Department of Vietnam Customs, instructing: “In case goods that are imported on the spot for export production and are subject to import tax and VAT, declaring type code A11, A12 but the importer registered the declaration under the type code E31 and already paid import tax but has not yet paid value-added tax, the taxpayer should make additional declaration of value-added tax as prescribed in Article 20 of Circular 38/2015/TT-BTC as amended and supplemented in Clause 9, Article 1 of Circular 39/2018/TT-BTC”.

Compared with the above regulations and instructions, the General Department of Vietnam Customs said that, in case goods of on-spot import for export production, it was subject to import tax and value-added tax. Thus they must declare according to the type code A11, A12. However, the importer has paid import tax but has not yet paid value-added tax. Therefore, the taxpayer shall make an additional declaration of value-added tax as prescribed in Article 20 of Circular 38/2015/TT- BTC is amended and supplemented in Clause 9 Article 1 of Circular 39/2018/TT-BTC.

Regarding sanctioning of administrative violations, the General Department of Vietnam Customs has issued Official Letter No. 756/TCHQ-TXNK dated March 7, 2022 instructing Quang Ngai Customs Department to implement for similar cases.

Accordingly, the act of failure to declare and pay value-added tax of on-spot importers at the time of carrying out on-spot importation of goods for export production is not subject to the case of not sanctioning administrative violations as prescribed in Clause 11, Article 16 of the Law on Tax Administration No. 38/2019/QH14; Clause 3, Article 6 of Decree 128/2020/ND-CP of the Government.

By Nụ Bùi/Thanh Thuy

Related News

Businesses anticipate new policies on customs procedures and supervision

Businesses anticipate new policies on customs procedures and supervision

VCN - With this year’s import-export turnover estimated at nearly US$800 billion and forecasting to surpass this milestone next year, the business community holds high expectations for upcoming amendments and supplements to customs management, procedures, and supervision policies. These changes are expected not only to facilitate trade but also to enhance state management efficiency and support economic development.
Significant changes ahead in the management of processing, export production, and export processing enterprises

Significant changes ahead in the management of processing, export production, and export processing enterprises

VCN - The management of goods in the processing, export production (EP), and export processing enterprise (EPE) sectors will undergo significant changes in customs procedures, aiming to streamline operations and create more favorable conditions for businesses.
Handling tax debts for imported goods under the type of processing

Handling tax debts for imported goods under the type of processing

VCN - The General Department of Vietnam Customs has just guided the Dong Nai Customs Department to resolve difficulties in handling tax debts for imported goods under the type of processing type, export production and investment which subjected to tax exemption.
Tax refund applied for imported raw material serving for export production

Tax refund applied for imported raw material serving for export production

VCN - According to regulations, imported raw materials for production have paid import tax, when exporting products, if they meet all conditions, they will be refunded tax.
Comment

Latest News

Consulting on customs control for e-commerce imports and exports

Consulting on customs control for e-commerce imports and exports

VCN- The General Department of Vietnam Customs (GDVC) consults widely on the draft Decree regulating customs control for e-commerce imports and exports.
Flexible tax policy to propel Việt Nam’s economic growth in 2025

Flexible tax policy to propel Việt Nam’s economic growth in 2025

The Vietnamese government has extended and enhanced tax relief for 2025, offering reductions and deferrals to boost economic growth.
Brandnew e-commerce law to address policy gaps

Brandnew e-commerce law to address policy gaps

The proposed law seeks to address gaps in existing regulations and keep pace with technological advancements and evolving business models.
From January 1, 2025: 13 product codes increase export tax to 20%

From January 1, 2025: 13 product codes increase export tax to 20%

VCN - According to the Export Tariff (XK) issued with Decree 26/2023/ND-CP, from January 1, 2025, there will be 13 commodity codes with an export tax rate of 20%.

More News

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

VCN – According to the Export Tariff issued with Decree 26/2023/ND-CP, the tax rates of 13 commodity codes will increase to 20% from January 1, 2025.
Proposal to reduce 30% of land rent in 2024

Proposal to reduce 30% of land rent in 2024

VCN - The Ministry of Finance has finalized a draft Government Decree outlining the reduction of land rent for 2024. The draft is currently under review by the Ministry of Justice before being submitted to the Government for approval.
Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax procedures and policies for the business community.
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

VCN - Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes. These include updates on authority, methods of asset exploitation in agencies and units, plans for leasing, joint ventures, and partnerships in public service units, as well as centralized procurement procedures.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

VCN - Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year. These efforts aim to promptly address challenges, resolve obstacles, and facilitate import-export activities. Such meetings offer an opportunity for the Customs authority and the business community to exchange, share insights, and find solutions to enhance operational quality and efficiency.
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - Promoting negotiations on customs commitments within the framework of free trade agreements (FTAs) plays an important role in facilitating import and export activities. These commitments not only help optimize the customs clearance process but also minimize costs and risks for businesses, opening up great opportunities for Vietnamese goods to access deeper into the international market.
Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - To perfect the policy on customs procedures, inspection and supervision, enterprises and associations have contributed many ideas from practical activities. Thereby, the Drafting Committee (General Department of Customs) has more perspectives to build policies to meet the goal of facilitating trade and ensuring state management of customs.
Review of VAT exemptions for imported machinery and equipment

Review of VAT exemptions for imported machinery and equipment

VCN - The General Department of Vietnam Customs has directed provincial and municipal customs departments to review, inspect, and address issues related to the implementation of VAT exemption policies for specialized machinery and equipment used in agricultural production.
Customs tightens oversight on e-commerce imports

Customs tightens oversight on e-commerce imports

VCN - The General Department of Vietnam Customs has issued new directives to enhance the management of imported goods transacted through e-commerce platforms, addressing ambiguities and ensuring consistent enforcement across provincial and municipal customs departments.
Read More

Your care

Latest Most read
Consulting on customs control for e-commerce imports and exports

Consulting on customs control for e-commerce imports and exports

VCN - The Decree provides regulations on inspection and specialized management for e-commerce imports and exports; electronic customs data processing system for e-commerce imports and exports.
Flexible tax policy to propel Việt Nam’s economic growth in 2025

Flexible tax policy to propel Việt Nam’s economic growth in 2025

The Vietnamese government has extended and enhanced tax relief for 2025, offering reductions and deferrals to boost economic growth.
Brandnew e-commerce law to address policy gaps

Brandnew e-commerce law to address policy gaps

The proposed law seeks to address gaps in existing regulations and keep pace with technological advancements and evolving business models.
From January 1, 2025: 13 product codes increase export tax to 20%

From January 1, 2025: 13 product codes increase export tax to 20%

VCN - According to the Export Tariff (XK) issued with Decree 26/2023/ND-CP, from January 1, 2025, there will be 13 commodity codes with an export tax rate of 20%.
Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025

VCN - 13 commodity codes with export tax rates increased to 20% from January 2025 include:
Mobile Version