Customs proactively prevents pricing fraud for imported cars in the form of gifts and donations

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Customs officers of the North of Hanoi Custom Branch check imported cars. Photo: Huu Linh.

According to statistics from the General Department of Vietnam Customs, from January 1, 2016 to September 30, 2016, the number of imported cars in the form of gifts and donations was 1,072 vehicles with the declared tax of 1,576.9 billion vnd (including 492 billion vnd from import tax, 856.2 billion vnf from special consumption tax and 228.7 billion vnd from VAT).

During the handling of Customs procedures, Customs officers discovered abnormalities in low declared value of goods from some companies, so at the time of implementing clearance procedures of goods, Customs officers reviewed and increased taxable value for 871 imported cars. Specifically, the gap between the actual tax to collect and the tax which enterprises declared was 887.9 billion vnd (including import tax of 277.5 billion vnd, special consumption tax of 481.8 billion vnd, and VAT of 128.6 billion vnd). For 87 vehicles which were declared at a lower price than the price in the Customs database, Customs officers are continuing to collect an additional tax revenue of 16 billion vnd (including import tax of 5 billion vnd, special consumption tax of 8.7 billion vnd and VAT of 2.3 billion vnd). The remaining 201 vehicles were inspected and their declared value has been accepted by Customs officers.

Thus, the total tax arrears which enterprises must pay is 2,480.9 billion vnd (including import tax of 774.6 billion vnd, special consumption tax of 1,346.6 billion vnd and VAT of 359.7 billion vnd). Until now, enterprises have paid the total tax of 2,461.7 billion vnd (including import tax of 768.5 billion vnd, special consumption tax of 1,336.3 billion and VAT of 356.9 billion vnd). Accordingly, the remaining tax which enterprises must pay is 19.2 billion vnd (including import tax of 6.1 billion vnd, special consumption tax of 10.4 billion vnd, and VAT of 2.7 billion vnd).

The General Department of Vietnam Customs affirmed it was not true that not until the information related to the import of cars as gifts and donations was revealed, did Customs authorities strengthen the management of the declared value. In fact, earlier, in order to comply with the Taxation regulations, to avoid losses to the State budget and to ensure equality among import enterprises, the General Department of Vietnam Customs had implemented close and strict management of Customs value declarations.

Especially for imported cars in the form of gifts and donations, the General Department of Vietnam Customs has issued notice of the abnormal phenomenon in the declarations of Customs value for imported cars to 5 Customs Departments, including the Hanoi Department of Customs, the HCM City Department of Customs, the Hai Phong Department of Customs, the Da Nang Department of Customs and the Ba Ria-Vung Tau Department of Customs; and has required these 5 units to review, inspect and determine the value of goods carefully.

In order to ensure the full tax collection into the State budget for declarations with abnormally low value, the General Department of Vietnam Customs has issued many legal documents to direct local Customs departments to strengthen inspections, investigation and valuation at the stage of Customs clearance and post-clearance audits. Besides, the General Department of Vietnam Customs has assigned local Customs Departments to establish a Customs Control Team on Value to regularly check the database of Customs value and to propose amendments and supplements to the list of imported and exported goods for export, which provides a basis to check the declared value. At the same time, the General Department of Customs has directed Customs Departments of provinces and cities to continue to review and coordinate with local Taxation Departments to collect tax arrears for imported cars in the form of gifts and donations with inappropriate tax rates; and perform a full update of valuation results into the database of Customs authorities.

“Forceful” with enterprise that import car in the form of gifts, donations inappropriately VCN- In a dispatch sent to the Da Nang Tax Department, the General Department of Taxation has ...

The General Department of Vietnam Customs emphasized that under current regulations, the Customs value is the actual price which enterprises must pay at the first entry, which is determined by 6 sequential valuation methods. Customs declarants must declare and determine the Customs value according to the principles and methods of determining the Customs value under the Law, and Customs declarants are responsible for the accuracy and truthfulness of the declarations. Where there is a basis for Customs officers to suspect the Customs declared value, Customs officers shall examine and redefine the declared value of Customs declarants.