Understanding and complying with the Ministry of Finance’s Circular 06 on tax administration for import and export goods

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Customs officers of Na Meo Customs Branch (Thanh Hoa Customs Department) inspect import and exprt goods. Photo: N.L

The GDVC requires municipal and provincial customs departments to research the legal document system on the tax administration (the Law on Tax administration in 2019, the Government Decree 126/2020/ND-CP dated October 19, 2020, the Ministry of Finance’s Circular 06 dated January 22, 2021) and other relevant documents, as well astrain all tax officials on these documents, especially Circular 06, before March 8.

At the same time, it also asks municipal and provincial customs departments to publicise and instruct the business community to comply with provisions in Circular 06.

During the implementation of Circular 06, the GDVC asks customs departments to perform regulations on handling tax late payments. Accordingly, the customs departments shall work basedon provisions in Point b.1, Clause 2, Article 9 of Circular 06. If after 30 days from the expiry date of tax payment, the taxpayer does not pay taxes, tax late payment interest or fines, or pays insufficient taxes late payment interest or fines, Customs willnotify the taxpayer about the tax and fine debts and the number of late payment days via the customs system under the form No.1 of Appendix II or a paper copy under form No.01/ TXNK of Appendix I issued together with Circular 06.

Regarding procedures for tax refund, departments willcomply with Point c.2, Clause 3, Article 12 of Circular 06, if goods that are imported for production and business but have been produced for export and exported abroad or exported to non-tariff zones, willbe subject to the import tax refund as prescribed in Article 36 of Decree 134/2016/ ND-CP dated September 1, 2016 of the Government (Decree 134); the taxpayer who paid import tax according to the tax assessment decision issued by the Customs authority (the Customs authority conducting tax assessment and the Customs authority where the import declaration is registered, are the two different authorities),willbe subject to the import tax refund.

Procedures shall be carried out as follows:

The customs branch where the import declaration is registered shall receive the application for tax refund, classify tax refund application; conduct inspection at the headquarters of tax payer’s premises (if the application is subject to inspection before tax refund); conduct the conclusion on tax amount eligible for tax refund under the customs declaration and the tax assessment decision at the end of the inspection; issue tax assessment decision for the tax amount of the tax payer who submitted the import declaration andmake the report and send it to the Customs that issued the tax assessment decision to conduct the tax refund.

The Customs that issued the tax assessment decision shall check the tax refund application against the tax assessment dossier and relevant documents; if the application is eligible, Customs shall issue tax refund decision. In addition to the legal basis as per regulations, the “tax refund under proposal of the customs branch in dispatch number… date… month… year” willbe added. After issuing the tax refund decision, Customs shall conduct tax refund in accordance with provisions. One copy of the tax refund decision willbe sent to the customs branch where the import declaration is registered for archiving the tax refund dossier.

Regarding procedures for non-tax collection for taxpayers not subject to import and export tax payment, the GDVC requires provincial and municipal customs departments to comply with the provisions in Point c, Clause 2, Article 13 of Circular 06. For the first re-imported or re-exported shipment requested for a tax refund, and the re-imported or re-exported goods that has aborder gate not the same with the border gate of the goods imported and exported for the first time, the Customs branch where the declaration of the re-imported or re-exported goods is registered shall issue a decision on non-tax collection for the re-imported or re-exported shipment after Customs where arising tax amount, determined the eligibility for tax refund for the goods imported and exported for the first time. The overpaid tax amount on re-imported or re-exported goods willbe handled according to the provisions of Article 10 of Circular 06.

If the first re-imported or re-exported shipment requested for tax refund and the re-imported or re-exported goods isthe same border gate with the border gate of the goods imported and exported for the first time,the Customs where the goods is re-imported or re-exported will receive and not collect taxes for these goods after the tax refund procedures for the goods imported and exported for the first time are completed.

Regarding import and export tax exemption dossiers, in Clause 4, Article 80 of the Law on Tax Administration 2019, the Minister of Finance is assigned to specify tax exemption dossiers. Therefore, tax exemption dossiers for import and export goods comply with Article 14 of Circular 06.

However, the tax exemption dossier in Decree 134 is not applicable to the following cases: Import and export goods are exempt from import and export tax under an international treaty acceded by the Socialist Republic of Vietnam per Clause 1 Article 29 of Decree 134.

Export goods produced from recycling and treatment of wastes are exempt from tax according to provisions of Point b, Clause 19, Article 16 of the Law on Import and Export Duty, Clause 3, Article 25 of Decree 134, Clause 23, Article 1 of Decree 40/2019/ND-CP dated May 13, 2019 of the Government amending and supplementing articles of decrees detailing and guiding the implementation of the Law on Environmental Protection; goods as imported raw materials and supplies are exempt from tax under provisions of Point a, Clause 11, Point b, Clause 15, and Point a, Clause 16, Article 16 of the Law on Import and Export Duty; goods traded by border residents exempt from tax according to provisions of Clause 1, Article 9 of Decree 134; Duty-free imported goods for national defence and security.

Regarding tax exemption procedures, while waiting for the issuance of a circular amending Circular 38/2015/TT-BTC and Circular No. 39/2018/ TT-BTC of the Ministry of Finance, the GDVC requires customs departments to implement tax exemption procedures in Decree 134, Circular 38/2015/TT-BTC, Circular 39/2018/TT-BTC of the Ministry of Finance, Decision No. 1919/ QD-TCHQ dated June 28, 2018 of the GDVC.

Regarding tax reduction dossiers, Clause 4, Article 80 of the Law on Tax Administration 2019, the Minister of Finance is assigned to detail tax reduction dossiers. Therefore, the tax reduction dossiers for import and export goods mustcomply with Article 15 of Circular 06 (the tax reduction dossiers shall not be implemented under Clause 2, Article 32 of Decree 134).

Regarding tax reduction procedures, while awaiting the promulgation of the circular amending Circular 38/2015/ TT-BTC and Circular 39/2018/TT-BTC, the customs departments will comply with provisions in Decree 134, Circular 38/2015/TT-BTC, Circular 39/2018/TT-BTC, Decision No. 1919/QD-TCHQ.

According to provisions in Clause 2, Article 20 of Circular 06, some regulations and forms will be invalid from March 8, so municipal and provincial customs department should comply with provisions.