Instructing to handling import-export tax on spot

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General Department instructed Tay Ninh Customs Department to handle difficulties about on-spot import-export tax.

Guidelines on tax settlement for export processing enterprises outside the export processing zone, the General Department of Vietnam Customs said that according to the regulations related to Law on Import and Export Tax, Decree No.134/2016/ND- CP and Decree No. 82/2018 / ND-CP:

The case where export processing enterprises are not located in export processing zones (was granted investment registration certificates) but they satisfied the provisions of Clause 1, Article 4 of the Law on Import and Export Tax, they would enjoy preferential tax policies similar to non-tariff zones (except for special preferences for non-tariff areas in border-gate economic zones).

In cases where domestic enterprises sold goods to export processing enterprises which are not in the export processing zones but they satisfied the provisions of Clause 1, Article 4 of the Law on Import and Export Tax, they would be applied tax policies as non-tariff areas.

The cases where enterprises have paid import tax for goods imported for production and sale but it has been put into production for export and the goods have been exported to export processing enterprises (satisfying the provisions of Clause 1, Article 4 of Law on Import and Export Tax) as following to on-spot export procedures, they would be refunded the amount of import tax that was paid.

In cases where enterprises importing goods for export production and in fact, they already exported to export processing enterprises (satisfying the provisions in Clause 1, Article 4 of Law on Import and Export Tax) following the on-spot export procedures, they would be exempt from import tax.

Export processing enterprises (which meet the requirements of Clause 1, Article 4 of the Law on Import and Export Tax) were not included in the export processing zones would be subjected to tax when trading goods.

Accordingly, the customs authorities should base on the contents of the investment registration certificate or document of the competent authority investment registration body in cases that do not need procedures carried out for the granting of investment registration certificate for determining whether the export processing enterprises is the basis for determining the beneficiaries of tax policy of the non-tariff area or not.

Enterprises should declare and lodge by themselves the documents related to the determination of tax obligations, the application of tax policies for non-tariff areas and take responsibility under the law for the contents already declared to the customs authorities. The customs authorities should conduct the inspection in accordance with the principle of risk management. In cases where the customs authorities detect that enterprises made wrong declarations, they would handle them in accordance with the provisions of law.

Particularly for the case of importing goods in the form of export production, then exporting products according to the on-spot export and import forms, the General Department of Vietnam Customs instructed that, from 1/9/2016, in cases where enterprises import raw materials and materials for export production, then sold products made from imported raw materials and supplied to foreign traders, but designated by foreign traders for delivery to other enterprises in Vietnam (export of products by type of export on-the-spot), they would not be entitled to tax exemption as prescribed.

In cases where enterprises have been exempted from import tax for raw materials and supplies in the form of export production but then export products on the spot, the customs offices shall make a tax assessment, charge for late payment and handle fines for administrative violations in accordance with regulations. Tax calculation bases, time of tax calculation and tariff are implemented in accordance with Chapter II of the Law on Import and Export Taxes.