Export and Import tax

11/25/2021

Export and Import tax is an indirect tax levied on goods that are allowed to be exported or imported across Vietnamese border including the case of exporting from the domestic market into the non – tariff area and importing from the non-tariff area into the domestic market. Accordingly, objects of taxation are exported or imported goods through Vietnamese border gate and border. Taxpayers and declarers are owners of exports and imports, entrusted exporters and importers (see more details in Articles 2 and 3, Law 107/2016/QH13).

The regulations related to import and export tax present the following contents:

  1. Basic for tax calculation (including tax rate), time for tax calculation, tax payment deadline
  2. Anti-dumping duties, countervailing duties, safeguard duties
  3. Tax exemption, reduction, and refund
  4. Tax declaration
  5. Frequent asked questions

To make it easier for readers to learn and understand the above contents, we have analyzed a few cases and systematized the above contents as below.

To view all relevant documents please click here (tax related regulations).

1. Basic for tax calculation (including tax rate), time of tax calculation, tax payment deadline

Basic for tax calculation

There are three methods to determine the tax bases for import and export goods: proportional duties method, fixed duties method and mixed duties method.

Proportional duties method

The amount of export or import tax

=

Taxable value

x

Tax rate (%)

In which:

The taxable value is the customs value prescribed by the Law on Customs.

  • Tax rate (%) of each item will be subject to change at each time of tax calculation (refer here).

Fixed duties method

The amount of export or import tax

=

Actual quantity of exports or imports

x

Amount of fixed tax

In which: Amount of fixed duty will be subject to change at each time of tax calculation (refer here)

Mixed duties method is determined as the total amount of proportional tax and fixed tax.

Time of tax calculation

is the time of registration of the customs declaration. (See more details in Article 8, Law 107/2016/QH13).

Tax payment deadline:

before customs clearance or release as prescribed by the Law on Customs (See more details in Article 9, Law 107/2016/QH13).

2. Anti-dumping duties, countervailing duties, safeguard duties

  • Anti-dumping duties is an additional import tax applied in cases where dumped goods imported into Vietnam causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.
  • Countervailing duties is an additional import tax applied in cases where the import of subsidized goods into Vietnam causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.
  • Safeguard duties is an additional import tax applied in case where excessive import of goods into Vietnam causes or threatens to cause considerable damage to domestic manufacturing or prevents the formation of domestic manufacturing.

(See more details in Article 12,13,14,15, Law 107/2016/QH13).

3. Tax exemption, reduction, and refund

Tax exemption

is applied in some of the following cases:

  • Mobile belongings, gifts;
  • Goods imported/exported for processing, processed products for export/import;
  • Goods imported for manufacture of exports;
  • Goods temporarily imported for re-export or goods temporarily exported for re-import within a certain period of time;
  • Imported fixed assets of entities eligible for investment incentives;
  • Goods manufactured, processed, recycled, assembled in a free trade zone;
  • Imported raw materials and components for manufacture or assembly of medical equipment;
  • Imported raw materials, supplies, components for manufacture of information technology products, digital contents, software;
  • Non-commercial imported goods;

(See more details from Article 5 to 29, Decree 134/2016/NĐ-CP).

Tax reduction:

exported and imported goods under customs supervision specified in the Law on Customs and its instructional documents shall be reduced if the goods are damaged or lost because of inevitable causes as prescribed in Clause 1 Article 18 of the Law on Export and import duties. (See more details in Article 32, Decree 134/2016/NĐ-CP).

Tax refund

is applied in some of the following cases:
  • Re-imported exports;
  • Re-exported imports;
  • Machinery, equipment, tools, vehicles temporarily imported and re-exported;
  • Goods initially imported for business operation but eventually used for manufacture of domestic exports;
  • Taxpayers have paid import or export tax but have no imported or exported goods or imported or exported less than the taxed imported or exported goods, No tax refund for the case with the minimum tax amount.

(See more details from Article 33 to 37, Decree 134/2016/NĐ-CP).

4. Tax declaration

When import and export operations arise, enterprises will declare at the time of customs clearance preparation or release according to the guidance of the customs law and the VNACCS system.

5. Frequent asked question

Regarding import and export tax regulations, businesses often ask questions related to customs procedures when exporting and importing for the type of goods they are doing/wanting to do business with. Therefore, readers can refer to the Questionnaire List at some of the following main websites: