Dealings with import duty and VAT for the excessive materials of EPE

On July 24, 2015, the General Department of Customs issued Official Letter No. 6790/TCHQ-TXNK on dealings with tax for the excessive materials of EPE, accordingly:

  • Import duty: in case excessive materials of EPE are still in warehouse, and shall not deliver for domestic consumption, and the enterprises shall not violate the regulation at Article 29 of the Law on Tax Administration, then such excessive materials shall not be subjected to taxable one under the regulation of Decree 87/2010/ND-CP. Therefore, the customs authorities shall not implement import tax assessment in respect of such raw material.
  • VAT: when EPE does not violate the regulation at Article 39 of the Law on Tax Administration, then such excessive materials shall not subject to VAT under the regulation of Article 5 of the Law on VAT No. 13/2008/QH12, the Customs authorities shall not implement import tax assessment in respect of such raw material.
  • When the enterprises are detected that they arbitrarily implement domestic consumption or have fraud behavior, tax evasion, then they shall be implemented the import tax assessment and VAT as prescribed.