How to refund tax for authorized enterprise for auto part imports?

VCN- If an enterprise registers for participation in the Tax Incentive Program and authorizes another enterprise to import auto parts, the Customs authority which receives the dossier will refund overpaid tax amount to the account of the authorized enterprise upon final settlement in the case where it is eligible for enjoying 0% tax rate in accordance with provisions in Article 7a Decree 125/2017/ND-CP.  
how to refund tax for authorized enterprise for auto part imports Automobile joint ventures expanding production in Vietnam
how to refund tax for authorized enterprise for auto part imports Condition for verifying declaration of origin of vehicle serving for security and defense
how to refund tax for authorized enterprise for auto part imports Automobile market: Positive but not "smooth"
how to refund tax for authorized enterprise for auto part imports
Illustrative photo.

This is instructed by the General Department of Vietnam Customs to provincial and municipal Customs Departments for the deployment of the Incentive Tax Program on imported auto parts to facilitate enterprises and these Departments in implementing the program.

Specifically instructing on the application of the tax rate under heading 98.49 for authorized imports, the General Department of Vietnam Customs says that Clause 6 Article 1 Decree 125/2017/ND-CP supplementing Section b, Clause 2 Article 7a stipulates that an enterprise that enjoys the Incentive Tax Program, is an enterprise that is eligible for manufacturing and assembly of automobiles in accordance with the Government’s regulations on requirements for manufacturing, assembly, import of automobiles and trade in automobile warranty and maintenance services, and the conditions for enjoying the Incentive Tax Program.

Auto parts are directly imported by enterprises prescribed in Point a of this Clause for manufacturing and assembly of automobiles, or for auto parts that are imported by organizations and individuals prescribed in Point a of this Clause who authorize another enterprise to import auto parts and meet the following conditions: auto parts listed in heading 98.49, and they cannot be domestically manufactured.

Besides, Clause 6 Article 1 Decree 125/2017/ND-CP supplementing Section b, Clause 3 Article 7 provides that, ‘if an enterprise is eligible for enjoying the Tax Incentive Program, and a taxpayer has paid a tax amount for imported auto parts that is higher than the taxable amount under the tax rate of heading 98.49, the Customs authority shall handle the overpaid tax amounts to enterprises according to the provisions of the Law on Tax Administration and the guidance documents’.

Clause 5 Article 57 of the Law on Tax Administration guiding on tax refund stipulates; ‘Organizations and individuals pay other taxes with the paid tax amount that is higher the taxable amount’.

how to refund tax for authorized enterprise for auto part imports Tax refund for foreigners: Problems from the business of sales tax refund

VCN- The VAT refund program for foreigners has been officially implemented by the Ministry of Finance since ...

For these regulations, the General Department of Vietnam Customs said that if an enterprises for participation in the Tax Incentive Program and authorizes another enterprise to import auto parts, the Customs authority which receives the request the 0% tax rate under heading 98.49, will refund any overpaid tax amount to the authorized enterprise’s account upon the final settlement in the case where it is eligible for enjoying the tax rate of 0% in accordance with provisions in Article 7a Decree 125/2017/ND-CP, and the authorized enterprise shall send written requests for refund of overpaid tax amount to be paid into its account (enclosing the request for enjoying 0% tax rate).

Regarding the handling for imported raw materials in stock at the end of a half-yearly period, the GDVC said that the imported auto parts, which are considered to be applied at the 0% tax rate, detailed in heading 98.04, are auto parts imported in the period of requesting for enjoying 0% tax rate that were used for manufacturing, assembly of automobiles in line with the number of finished automobiles in that period.

The period of requesting by enterprises shall not exceed 6 months, from 1st January to 30th June or from 1st July to 31st December every year.

For enterprises registered for participation in the Tax Incentive Program after 16th November 2017, the period of the final settlement is from the date of registering for the program to 30th June 2018.

The number of imported auto parts in stock in the previous final settlement period that are used for manufacturing and assembly in the next final settlement shall not be subject to the 0 % tax rate.
By Thu Trang/Ngoc Loan

Related News

Vietnam and China promote Customs cooperation

Vietnam and China promote Customs cooperation

VCN - The representative of Vietnam Customs and the Ambassador Extraordinary and Plenipotentiary of the People's Republic of China to Vietnam exchanged the Action Plan between the General Department of Vietnam Customs (GDVC), the Ministry of Finance of the Socialist Republic of Vietnam and the General Administration of Customs of the People's Republic of China (GACC) on the Mutual Recognition Agreement on Authorized Economic Operator of Vietnam Customs and the Enterprise Credit Management Program of China Customs, on October 13, 2024, at the Government headquarters.
Customs supports compliant businesses to improve investment environment

Customs supports compliant businesses to improve investment environment

VCN - When participating in the Pilot Program to support and encourage enterprises to voluntarily comply with Customs law, enterprises will become more professional and proactive, thereby enhancing their image and position, expanding partners, markets and making production and business activities more favorable.
Ha Tinh Customs faces many difficulties in budget collection

Ha Tinh Customs faces many difficulties in budget collection

VCN - According to Ha Tinh Customs Department, from May 2024, due to the impact of market consumption, output products of many enterprises have been in stock, leading to enterprises having to cut down on the import of input materials. This has affected the unit's revenue.

Latest News

How to handle export processing enterprises forgetting to open a corresponding import declaration

How to handle export processing enterprises forgetting to open a corresponding import declaration

VCN - From 2014 to 2019, Dragonjet Vietnam Co., Ltd. (headquartered in Que Vo Industrial Park, Bac Ninh) opened 17 on-site export declarations of domestic enterprises, however, the company “forgot” to open a corresponding import declaration. Dragonjet Vietnam Co., Ltd proposed the Customs authority to instruct tax procedures and policies and whether failure to register a corresponding declaration will result in tax imposition?
Food safety rules relaxed for emergency imports

Food safety rules relaxed for emergency imports

VCN - Products and goods provided by foreign governments and international organizations for emergency relief to people recovering from storm No. 3 are exempt from state inspection of food safety and quality.
Checking and reviewing the classification of exported copper

Checking and reviewing the classification of exported copper

VCN - In order to ensure that the classification is consistent with the declared code, the General Department of Vietnam Customs requests the customs departments of provinces and cities to strengthen the inspection and review of the classification of exported copper goods.
Amendment of Special Preferential Import and Export Tariff Schedule to Implement CPTPP Agreement for the 2022-2027 Period

Amendment of Special Preferential Import and Export Tariff Schedule to Implement CPTPP Agreement for the 2022-2027 Period

VCN - The Ministry of Finance is drafting a decree amending and supplementing a number of articles of Decree No. 115/2022/ND-CP dated December 30, 2022 of the Government promulgating Vietnam's preferential export tariff schedule and special preferential import tariff schedule to implement the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) for the 2022-2027 period. The Decree is expected to take effect from the date of signing.

More News

Must strictly manage duty-free goods

Must strictly manage duty-free goods

VCN - The General Department of Customs has just responded to the Binh Phuoc Customs Department to guide Binh Duong Water and Environment Corporation to implement regulations on the management of tax-free imported goods.
Amend the law to protect the rights of accountants

Amend the law to protect the rights of accountants

VCN - Promoting decentralization, delegation of authority, improving state management capacity in the field of accounting, enhancing the responsibility of leaders, etc will ensure the legitimate rights of accountants, prevent corruption and waste.
Simplification is not enough, enterprises need stronger administrative reform

Simplification is not enough, enterprises need stronger administrative reform

VCN - Commenting on the Draft Report on improving business regulations to support productivity growth in Vietnam, the Vietnam Chamber of Commerce and Industry (VCCI) said that regulations on administrative procedures need stronger reform.
Propose a 15-30% reduction in land rents in 2024 for people affected by typhoon Yagi

Propose a 15-30% reduction in land rents in 2024 for people affected by typhoon Yagi

VCN - To support people and businesses with more resources to cope with difficulties and challenges in production and business due to the impact of typhoon No. 3 (Yagi), the Ministry of Finance proposed a 15-30% reduction in land rents in 2024.
Amending 3 important policies in the Law on State Budget

Amending 3 important policies in the Law on State Budget

VCN - The Ministry of Finance proposed regulations allowing local budgets to invest in the construction of central infrastructure works in the locality and support other localities to invest in the construction of regional and inter-regional infrastructure projects, contributing to mobilizing resources from the budgets of financially capable localities for inter-regional projects to be completed soon, helping localities in the region promote socio-economic development.
MoF proposes to abolish Article 35 on “on-the-spot import and export” in Decree No.08/2015/ND-CP

MoF proposes to abolish Article 35 on “on-the-spot import and export” in Decree No.08/2015/ND-CP

VCN - The Ministry of Finance (the General Department of Vietnam Customs) has received comments on the draft Decree amending and supplementing a number of articles of Decree No. 08/2015/ND-CP providing specific provisions and guidance on enforcement of the customs law on customs procedures, examination, supervision and control procedures. In addition to revision related to on-the-spot import and export activities, the draft also proposes to supplement new regulations to meet requirements of implementing digital customs, ensuring compliance with practical situations and promoting customs modernization.
Revised Law on Special Consumption Tax to reduce consumption rate of products harmful to health

Revised Law on Special Consumption Tax to reduce consumption rate of products harmful to health

VCN – According to the assessment, the increase in the Law on Special Consumption Tax not only aims to regulate the consumption of products harmful to the health and the environment, improve the health of the population and enhance labor productivity and boost sustainable development, but also raise the State revenue.
Chile officially issues electronic C/O form VC from November 1, 2024

Chile officially issues electronic C/O form VC from November 1, 2024

VCN - The General Department of Customs has just sent a notice to the local customs departments related to electronic Certificate of Origin (C/O) in the Vietnam - Chile Free Trade Agreement (FTA)
Adding tax exemption conditions in the draft revised Law on Corporate Income Tax

Adding tax exemption conditions in the draft revised Law on Corporate Income Tax

VCN - Practice has raised the need to amend and supplement the Law on Corporate Income Tax (CIT) to suit the development of the domestic and foreign economy and society. According to the assessment, the completion of the draft Law on Corporate Income Tax will move towards a more favorable business environment, encourage investment and sustainable development as well as meet the goals set for CIT reform.
Read More

Your care

Latest Most read
How to handle export processing enterprises forgetting to open a corresponding import declaration

How to handle export processing enterprises forgetting to open a corresponding import declaration

VCN - From 2014 to 2019, Dragonjet Vietnam Co., Ltd. (headquartered in Que Vo Industrial Park, Bac Ninh) opened 17 on-site export declarations of domestic enterprises, however, the company “forgot” to open a corresponding import declaration. Dragonjet Vie
Food safety rules relaxed for emergency imports

Food safety rules relaxed for emergency imports

Products and goods provided by foreign governments and international organizations for emergency relief to people recovering from storm No. 3 are exempt from state inspection of food safety and quality.
Checking and reviewing the classification of exported copper

Checking and reviewing the classification of exported copper

General Department of Vietnam Customs requests the customs departments of provinces and cities to strengthen the inspection and review of the classification of exported copper.
Amendment of Special Preferential Import and Export Tariff Schedule to Implement CPTPP Agreement for the 2022-2027 Period

Amendment of Special Preferential Import and Export Tariff Schedule to Implement CPTPP Agreement for the 2022-2027 Period

The Ministry of Finance is drafting a decree amending a number of articles of Decree No. 115/2022/ND-CP dated December 30, 2022 of the Government promulgating Vietnam's preferential export tariff schedule and special preferential import tariff schedule to
Must strictly manage duty-free goods

Must strictly manage duty-free goods

The GDVC has just responded to the Binh Phuoc Customs Department to guide Binh Duong Water and Environment Corporation to implement regulations on the management of tax-free imported goods.
Mobile Version