The Ultimate Guide to Understanding and Navigating the Complex World of Import-Export Tax Refunds

Tax refunds are a government initiative to return a portion of taxes to individuals and organizations who have fulfilled their tax obligations. If you have any queries about procedures for import and export tax refunds, read on to explore the following article.

1What are the conditions for import tax refund eligibility?

According to Decree No. 134/2016/ND-CP, Article 36 states: “Taxpayers who have paid import taxes on goods for production and business but have used them for the production of exported goods and have exported the products abroad or into a duty-free zone are eligible for a refund of the import taxes paid.”

The types of imported goods eligible for tax refunds include:

• Raw materials, supplies (including packaging materials or packaging for exported products), components, and semi-finished products that are directly incorporated into exported products or directly involved in the production process of exported goods without being directly transformed into those goods;
• Complete products imported for assembly or packaging with exported products; and components and spare parts imported for warranty purposes of exported products.

What are the conditions for import tax refund eligibility?

Basis for determining goods eligible for tax refunds

• Organizations and individuals producing exported goods must have a production facility for those goods on Vietnamese territory.
• Have ownership or usage rights to machinery and equipment at the production facility that align with the imported raw materials, supplies, and components used in the production of exported goods.
• The value or quantity of imported raw materials, supplies, and components eligible for tax refunds should correspond to the actual amount used in the production of exported goods.
• Exported products must undergo customs procedures according to the export production type.
• Organizations and individuals must be directly involved or authorized to import goods and export products.

2What are the documents required for import and export tax refunds?

Tax refunds for exported goods that need to be re-imported

Tax refunds for exported goods that need to be re-imported

• Official request letter for import tax refund using Form No. 09 as per Appendix VII issued together with Decree No. 134/2016/ND-CP dated 01/09/2016 by the Government: 01 original;
• Payment documents for exported and imported goods in case of completed payment: 01 copy with the seal of the agency certifying it as a true copy of the original;
• Export and import contracts and invoices according to the contracts for cases of goods purchase and sale; or contracts for export and import authorization if the goods are exported or imported under authorization (if any): 01 copy with the seal of the agency certifying it as a true copy of the original;
• For goods that need to be re-imported due to refusal or non-receipt by the foreign customer, as notified by the carrier, additional documents are required: notification from the foreign customer or agreement with the foreign customer regarding the acceptance of returned goods, or a notification from the carrier about non-receipt of goods, clearly stating the reasons, quantity, and type of returned goods: 01 copy with the seal of the agency certifying it as a true copy of the original.

Tax refunds for imported goods that need to be re-exported

Tax refunds for imported goods that need to be re-exported

• Official request letter for import tax refund using Form No. 09 as per Appendix VII issued together with Decree No. 134/2016/ND-CP dated 01/09/2016 by the Government: 01 original;
• Value-added tax invoices or sales invoices as per regulations on invoices for cases mentioned in points a and c, Clause 1, Article 34 of Decree No. 134/2016/ND-CP: 01 copy with the seal of the agency certifying it as a true copy of the original;
• Payment documents for exported and imported goods in case of completed payment: 01 copy with the seal of the agency certifying it as a true copy of the original;
• Export and import contracts and invoices according to the contracts for cases of goods purchase and sale; or contracts for export and import authorization if the goods are exported or imported under authorization (if any): 01 copy with the seal of the agency certifying it as a true copy of the original;
• Agreement to return goods to the foreign party in case of returning goods to the original foreign owner for imported goods as per point a, Clause 1, Article 34 of Decree No. 134/2016/ND-CP: 01 copy with the seal of the agency certifying it as a true copy of the original;
• Notification from international courier or express delivery enterprises about the inability to deliver goods to the recipient for imported goods as per point b, Clause 1, Article 34 of Decree No. 134/2016/ND-CP: 01 copy with the seal of the agency certifying it as a true copy of the original.
• Confirmation from maritime transport enterprises about the quantity and value of goods purchased from the domestic import-export enterprise that were actually supplied to foreign maritime vessels, along with a list of payment documents from foreign maritime vessel companies for imported goods as per point c, Clause 1, Article 34 of Decree No. 134/2016/ND-CP: 01 original.

Tax refunds for machinery, equipment, tools, and means of transport of organizations and individuals permitted for temporary import and re-export

Tax refunds for machinery, equipment, tools, and means of transport of organizations and individuals permitted for temporary import and re-export

• Official request letter for import tax refund using Form No. 09 as per Appendix VII issued together with Decree No. 134/2016/ND-CP dated 01/09/2016 by the Government: 01 original;
• Payment documents for exported and imported goods in case of completed payment: 01 copy with the seal of the agency certifying it as a true copy of the original;
• Export and import contracts and invoices according to the contracts for cases of goods purchase and sale; or contracts for export and import authorization: 01 copy with the seal of the agency certifying it as a true copy of the original.

Tax refunds for imported goods used for production and business but with exported products

Tax refunds for imported goods used for production and business but with exported products

• Official request letter for import tax refund using Form No. 09 as per Appendix VII issued together with Decree No. 134/2016/ND-CP dated 01/09/2016 by the Government: 01 original;
• Payment documents for exported and imported goods in case of completed payment: 01 copy with the seal of the agency certifying it as a true copy of the original;
• Export and import contracts and invoices according to the contracts for cases of goods purchase and sale; or contracts for export and import authorization: 01 copy with the seal of the agency certifying it as a true copy of the original;
• Taxpayers must declare on the export customs declaration form information about the contract number, date, and name of the purchasing partner.
• Report on the calculation of taxes for imported raw materials, supplies, and components (using Form No. 10 as per Appendix VII issued together with Decree No. 134/2016/ND-CP).
• The amount of import tax to be refunded for raw materials, supplies, and components must correspond to the quantity and type of imported raw materials, supplies, and components actually used in the production of exported goods;
• Processing contracts signed with foreign customers (for cases of importing raw materials, supplies, and components for the production of products, and then using those products for processing exported goods under a processing contract with a foreign party): Submit 01 copy with the seal of the agency certifying it as a true copy of the original;
• Documents proving the existence of a production facility on Vietnamese territory: Ownership or usage rights to machinery and equipment at the production facility that align with the imported raw materials, supplies, and components used in production: 01 copy with the seal of the agency certifying it as a true copy of the original.

3What is the procedure for import and export tax refunds?

What is the procedure for import and export tax refunds?

Step 1: The taxpayer submits the tax refund application dossier to the customs authority where the customs procedures are carried out. If the goods are eligible for tax refunds but have not been taxed or are exempt from taxation as per Article 19 of the Law on Export and Import Taxes, the procedures for non-tax collection and tax refunds shall be followed.

Step 2: The customs authority is responsible for receiving and inspecting the dossier and notifying the applicant of the results.

Step 3: Issue a decision on tax refunds/non-tax collection.

We hope that this detailed guide on import and export tax refund procedures has provided you with valuable insights.