On November 11, 2024, the General Department of Customs (GDC) has issued Official Letter No. 5556/TCHQ-TXNK providing guidance on the refund of import taxes for on-spot import declarations.
Tax policies:
GDC affirms that in case the on-spot importer has paid import tax for production and business purposes and later utilizes the on-spot imported goods for the production of export goods, the paid import tax shall be refunded.
(Pursuant to Clause 1, Article 36 of Decree No. 134/2016/ND-CP)
On-spot imported goods under the processing category will be exempted from taxes if the following conditions are met:
- Taxpayers must have a processing contract and declare contract information and appendices on the customs declaration.
- Taxpayers or reprocessing organizations must own or use processing facilities and machinery in Vietnam, and at the same time notify relevant information to customs offices as prescribed.
On-spot imported good registered for customs declaration in other forms must be declared and paid at the tax rate and dutiable value at the time of registration of the declaration.
(Pursuant to Clause 6, Article 1 of Decree 18/2021/ND-CP)
Tax refund dossier:
- Official letter for tax refund: 01 original copy.
- Payment proof (if paid): 01 photocopy.
- Import and export contracts, invoices and entrustment contracts (if any): 01 photocopy.
- Report on tax calculation of imported raw materials, supplies and components.
- Processing contract with foreign customers (if any): 01 photocopy.
- Documents proving the production establishment, ownership or use of machinery and equipment: 01 photocopy.
(Pursuant to Clause 5, Article 36 of Decree No. 134/2016/ND-CP)
(According to Official Letter No. 5556/TCHQ-TXNK dated November 11, 2024)
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