How will nearly 400 convertible use Audi cars do the procedure and pay the tax?

A lot of Audi cars imported through the port of Hiep Phuoc - Ho Chi Minh City. Photo by L.T

Open new declaration and change the use purpose

As a sponsor of the transport at APEC Vietnam events, Audi Vietnam has temporarily imported 389 Audi vehicles to serve travel officials at the APEC event.

According to Customs Department of Hiep Phuoc Port - Customs Department of Ho Chi Minh City, the number of imported cars belonging to 5 car types: 74 Audi A4s; 36 Audi A5s; 114 Audi A6s; 79 Audi Q5s and 87 Audi Q7s, imported through the border port of Hiep Phuoc - Ho Chi Minh City three times in early 2017 under the temporary import form.

In order to sell nearly 400 imported Audi cars after the APEC summit, enterprises must carry out the procedures for changing the purpose of using this number of vehicles according to regulations.

Guide the customs procedures for goods changing the purpose of transferring domestic consumption to Asia Automobile Company Limited on the number of automobiles mentioned above, the General Department of Customs guiding, pursuant to Clause 5, Article 25 of the Decree No. 08/2015/ND-CP stipulates that goods temporarily imported for re-export or goods cleared or already cleared but then changed for use or transferred for domestic consumption must be declared new customs declaration. Policies on the management of export and import goods; the tax policy applicable to export and import goods shall be implemented at the time of registration of new customs declarations except for cases where the export or import goods management policy has been fully implemented at the time of registration of initial declaration.

Based on the above guideline, now Asia Automobile Company is carrying out procedures to open a new customs declaration and change the purpose of using the whole number of imported cars.

The highest tax rate is over 1.6 billion VND/car

According to the customs office, the number of imported cars mentioned above is taxed as 100% imported cars. Customs valuation is based on the actual record of imported vehicles and customs valuation rules at the time of importation.

However, for the 389 imported Audi vehicles, the determination of customs value for tax purposes is different. Based on the Official Letter 6804/VPCP-KTTH of the Government Office, the number of cars imported for APEC conference in Vietnam will be used for APEC conference to meet the requirements of the Sub-Committee on material and logistics, but the actual time of use is less than 91 days, the taxable price shall be declared by the unit according to regulations - this price shall be reduced to no more than 10% of the unused CIF price of the newly imported vehicle.

For imported cars sponsored by APEC conference in Vietnam, there is sufficient conference use time required by the Sub-Committee on material and logistics, but the actual time to use from 91 days or more, the tax calculation price shall be declared by the unit as prescribed - This price shall be reduced to no more than 12% of the unused CIF price of newly imported vehicles.

In order to determine the reduction of 10% or 12% of the dutiable value, the General Department of Customs requests Audi Vietnam to contact the Customs Sub-department where the original temporary import customs declaration to serve the APEC conference, to be compliant with the requirements of the Sub-Committee on Material and Logistics as mentioned above.

According to calculations of the Customs Sub-Departments of Hiep Phuoc port, based on the enterprise's declared prices, if the tax calculation price is lowered at 10%, the total tax amount to be paid for the above-mentioned automobiles amounts to over 460 billion VND; If the discounted tax rate of 12%, the total tax Audi must pay over 450 billion VND (calculated at the current rate of 26.725 USD/Eur).

In particular, the Q7 car has the highest tax, over 1.645 billion VND/car. Thus, 87 Audi Q7s pay tax of 143.2 billion VND (discount 10%) and 140 billion VND (12% discount); 79 Audi Q5s were taxed at 90.6 billion VND (discounted at 10 percent) and 88.6 billion VND (discounted at 12 percent);

The lowest is Audi A4, the tax rate is 887 million VND/car. With 73 Audi A4 cars, the tax payable is 64.77 billion VND (10% discount) and 63.1 billion VND (12% discount).