Handling of tax on goods that cannot be produced domestically

According to the General Department of Vietnam Customs, Point h, Clause 5, Article 17 of Decree 126/2020/ND-CP dated October 19, 2020 of the Government stipulating articles of the Law on Tax Administration. Accordingly: "In case the decision on tax assessment is incomplete and inaccurate, Customs authority shall issue a decision on tax assessment to amend and supplement base on the form No. 01/QDDAĐT/TXNK in Appendix 3 issued together with this Decree. In the case that the issued tax assessment decision is not appropriate with the provisions of law, customs authority that issued the tax assessment decision shall issue a decision to cancel the tax assessment decision in accordance with Form No. 02/QDHADT/TXNK in Appendix 3 attached to this Decree.”

Customs officials of Hoa Lu Customs Branch - Binh Phuoc check vehicle transporting goods.

Article 10 of Circular 06/2021/TT-BTC dated January 22, 2021 guiding Clause 5, Article 60 and Clause 3, Article 61 of the Law on Tax Administration stipulating the competence and procedures for handling tax, late payment and overpayment penalty.

Specifically: “1. Taxes, late payment and fines for import and export goods are determined to be overpaid according to the provisions of Article 60 of the Law on Tax Administration.

“2. Competence to handle overpaid tax, late payment and fines: a) Director General of Vietnam Customs, Director of Customs Department of province, city, Director of Post-Clearance Audit Department, Director of Anti-smuggling and Investigate Department for the case of issuing decisions on tax assessment and sanctioning decisions. b) Manager of Customs Branch, Manager of the Sub-Department of Post-Clearance Audit where the amount of tax, late payment, fine and other revenues paid by the taxpayer is greater than the payable amount. c) The head of the customs authority where the payable tax, late payment interest or fine amount arises is larger than the tax, late payment interest or fine amount that is determined according to the complaint settlement decision of the competent authority, judgments and decisions of the Court.

“3. Procedures for handling overpaid tax, late payment interest and fines shall comply with Clauses 2, 3, and 4, Article 131 of Clause 64, Article 1 of Circular 39/2018/TT-BTC.”

The General Department of Vietnam Customs assigned Binh Phuoc Customs Department to check all import dossiers of firms and compare them with Circular 14/2015/TT-BKHDT dated November 17, 2015 of the Ministry of Planning and Investment and certification of the Ministry of Planning and Investment. If there are enough grounds to determine imported goods are goods that cannot be produced domestically by the Ministry of Planning and Investment, the unit should amend, supplement or cancel the decision on tax assessment per point h, clause 5, Article 17 of Decree 126/2020/ND-CP.

Procedures for handling tax and late payment interest paid by businesses following the decision on tax assessment, the customs authority shall handle the refund of overpaid amount in accordance with Clauses 2, 3 and 4, Article 131 and Clause 64 Article 1 of Circular 39/2018/TT-BTC.