Tax exemptions for re-imported goods - As long as you have the paperwork

VCN - According to regulations, customs authority will not collect tax on re-imported goods if customs declarants submit a complete set of tax exemption dossiers at the time of carrying out re-import procedures.

Whilst processing customs procedures and tax policies, the Binh Phuoc Customs encountered problems. According to the General Department of Vietnam Customs, the Law on Import Tax and Export Tax (No. 107 /2016/QH13) has stipulated tax refunds for cases where the taxpayer has paid export tax. However, the exported goods must be re-imported and the export tax later refunded. Import taxes are exempted.

Decree 134/2016/ND-CP, amended and supplemented in Decree 18/2021/ND-CP, also stipulates cases where tax was not collected for goods that were not subject to import and export tax.

Binh Phuoc Customs officers check imported and exported goods. Photo: N.H
Binh Phuoc Customs officers check imported and exported goods. Photo: N.H

Article 47 of Decree 08/2015/ND-CP stipulates: Forms of re-importation of goods that are already exported but returned (hereinafter referred to as re-importation for short) include: Re-importing returned goods for repair, reprocessing (referred to as recycling) and then re-exporting, re-importing returned goods for domestic consumption, re-importing goods returned for destruction in Vietnam (not applicable for processed goods of foreign traders); re-importing returned goods to export to other foreign partners.

Article 47 of Decree 08/2015/ND-CP also clearly stipulates that the customs authority does not levy taxes on re-imported goods, as specified in Clause 1 of this Article, as long as customs declarants submit sufficient documents proving that tax exemption is applicable to these commodities at the time of completing required re-import customs formalities.

According to the General Department of Vietnam Customs, based on the above provisions, tax processing for exported goods of type B11 (for business export) that must be re-imported, will be implemented too.

For example, if an enterprise exports goods purchased domestically under type B11, and has declared and paid export tax, when re-importing under type A31 (importation of exported goods) the customs authority has grounds to determine that re-imported goods are previously exported. For goods that have not been used or processed abroad, export tax shall be refunded and import tax shall not be paid. In cases when the customs authority has no basis to determine that the re-imported goods are previously exported goods, they must pay import tax upon re-import, and at the same time, the paid export tax shall not be refunded.

For cases when an enterprise exports goods originating from import (and has fully fulfilled tax obligations upon import), but fails to carry out the procedures for exempting export tax or import tax refund, they shall use export declaration code of type B11. When re-importing for repair and then re-exporting or for domestic consumption, according to type A31, if the customs authority has grounds to determine that the re-imported goods are previously exported and the goods have not been used or processed in foreign countries, it will be refunded as export tax and import tax won’t be paid.

In cases when the customs authority has no basis to determine that the imported goods are previously exported goods, they must pay import tax upon re-import, and at the same time, the paid export tax will not be refunded. Enterprises are not required to declare changes of purpose in cases where goods are re-imported for recycling but not re-exported.

For type code G13 (temporary tax-free import), import declarations have not yet arisen, the General Department of Vietnam Customs requested the Binh Phuoc Customs Department to follow the instructions in Official Dispatch No. 432/TCHQ-QLRR, dated 5 August 2021.

For cases when goods are exported and then re-imported, but there is no certification from the customs authority that the goods have not been used or processed abroad, the customs authority will not have enough basis to collect import tax or

refund export tax upon re-import, in accordance with the provisions of Article 33 of Decree 134/2016/ND-CP.

The General Department of Vietnam Customs emphasized that, in order to identify waste of export processing enterprises to be sold inland, it is requested that the Binh Phuoc Customs Department study the provisions of the Law on Environmental Protection and Clause 3, Article 1 of Decree 38. /2015/NDCP of the Government for implementation.

By Nụ Bùi/Thanh Thuy

Related News

Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

VCN - The Ministry of Finance said that the abolition of regulations on tax exemption for imported goods valued at less than VND1 million must comply with international practices in the context of the growing trend of cross-border e-commerce activities.
Are belongings of foreigners on business trip to Vietnam exempt from tax?

Are belongings of foreigners on business trip to Vietnam exempt from tax?

VCN - That is the question of Nhat Viet Relocation Company Limited, which has just been answered by the Customs Department and given specific instructions on providing a confirmation of residence of foreigners on business trip to Vietnam to follow tax exemption procedures for movable assets.
Perfecting the law on import and export tax towards exemption and reduction for the right subjects

Perfecting the law on import and export tax towards exemption and reduction for the right subjects

VCN - According to Deputy Director General of Vietnam Customs Luu Manh Tuong, there are still many issues to take full advantage of Free Trade Agreements (FTAs), including the need to perfect legal policies on import and export taxes in the direction of strict management and exemption for the right subjects.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...

Latest News

Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

VCN - Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

VCN - In order to avoid the situation of arriving at the airport or border gate and only finding out that you owe taxes and being temporarily suspended from leaving the country by the Tax Authority, the Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

VCN - In June 2005, the World Customs Organization (WCO) developed and adopted the SAFE Framework of Standards to Secure and Facilitate Global Trade. The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs. This approach introduces a comprehensive method for cross-border goods management and promotes closer cooperation between Customs, businesses, and stakeholders. The Customs News presents a two-part series on implementing the SAFE Framework in Vietnam.
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax administration.

More News

Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of handling administrative violations of the customs sector.
Implementing the SAFE Framework in Vietnam: Lessons from practice

Implementing the SAFE Framework in Vietnam: Lessons from practice

VCN - The Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework) is a strategic international instrument introduced by the World Customs Organization (WCO) to enhance security and trade facilitation in global supply chains. It contributes significantly to the economic development of the 21st century.
Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

Implementing the SAFE Framework in Vietnam: Solutions and Recommendations

VCN - Recognizing the significance, impact, and benefits of the SAFE Framework in customs modernization and reform, Vietnam Customs is advancing the implementation of SAFE. This involves both capacity building and phased deployment aligned with Vietnam Customs’ development strategy and practical needs.
Policy adaptation and acceleration of digital transformation in tax and customs management

Policy adaptation and acceleration of digital transformation in tax and customs management

VCN - In order to contribute to economic growth, tax, customs and logistics management policies need to ensure high adaptability, stability and predictability so that they require little amendment or supplementation.
Implement regulations on special preferential import tariffs under VIFTA

Implement regulations on special preferential import tariffs under VIFTA

VCN - The General Department of Vietnam Customs (GDVC) requests provincial and municipal customs departments to implement Vietnam's special preferential import tariffs under the Free Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the State of Israel for the period 2024-2027 (referred to as the VIFTA) from October 15, 2024.
Perfecting tax policy for goods traded via e-commerce

Perfecting tax policy for goods traded via e-commerce

VCN - In order to ensure the goal of developing e-commerce activities without causing loss of state budget revenue, the Customs authority is actively coordinating with policy advisory units of the Ministry of Finance to research and review regulations on tax exemption for import and export goods transacted via e-commerce.
Amending regulations on enforcement measures in tax administration

Amending regulations on enforcement measures in tax administration

VCN - In draft of 1 law amending 7 laws in the financial sector, the Ministry of Finance proposed to amend the regulations on enforcement measures in tax administration in the Law on Tax Administration.
Customs procedures for import and export goods during system disruptions

Customs procedures for import and export goods during system disruptions

VCN - When the electronic customs data processing system experiences a disruption, customs procedures for export and import goods, goods under customs supervision, and goods sent via express delivery will follow a separate set of procedures.
Procedures for customs processes when the VNACCS/VCIS system experiences disruptions

Procedures for customs processes when the VNACCS/VCIS system experiences disruptions

VCN - The General Department of Vietnam Customs has issued Decision No. 2537/QD-TCHQ, establishing procedures for customs processes for import, export, and goods under customs supervision when the VNACCS/VCIS system encounters disruptions.
Read More

Your care

Latest Most read
Hanoi Customs resolves tax policy queries for enterprises

Hanoi Customs resolves tax policy queries for enterprises

Queries regarding customs consultation procedures and tax refunds due to price reduction clauses were addressed by the Hanoi Customs Department, providing clarity for businesses.
Regularly check tax obligations to avoid temporary exit suspension

Regularly check tax obligations to avoid temporary exit suspension

Tax Authority recommends that taxpayers regularly look up their tax obligations to have a plan to pay taxes on time, not letting the tax debt situation drag on and drag on.
Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

Implementing the SAFE framework in Vietnam: Assessment through the lens of international standards

The SAFE Framework plays a crucial role in encouraging countries to modernize, enhance security, and facilitate trade within global supply chain management and Authorized Economic Operator (AEO) programs
Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

Proposing the Tax Authority be flexible in applying tax debt enforcement measures simultaneously

VCN - In the draft revised Law on Tax Administration, the Ministry of Finance proposed amending regulations on measures to enforce administrative decisions on tax administration to remove obstacles in policy mechanism and improve the effectiveness of tax
Many shortcomings in process and manual book on handling administrative violations

Many shortcomings in process and manual book on handling administrative violations

VCN - Legal policies on handling administrative violations have effectively supported the technical work of the Customs sector. However, some legal bases and regulations have been amended, replaced, and supplemented, which have limited the efficiency of h
Mobile Version