CUSTOMS PROCEDURES: Goods that change the purpose of use must pay full tax before tax deduction

Vietnam Customs Advisory

CUSTOMS PROCEDURES: Goods that change the purpose of use must pay full tax before tax deduction

Date: 11:11:53 26-09-2016 | 256 viewed

Faced with the enterprise's problem about getting a refund of the tax paid when it does not liquidate the assets but leaves it to the parent company's branch, the General Department of Customs said that in case the enterprise's goods have changed their purpose of use, the enterprise must pay full import tax and VAT and will be able to declare and deduct the VAT paid at the import stage with the domestic tax agency.

The enterprise carried out procedures to import the N2007 mixer to serve the production of animal feed products, but in 2013 the enterprise invested in a new line and the old machinery and equipment system was no longer suitable, so it requested liquidation and completed the payment of import tax and VAT for this shipment (because this is an imported product with preferential import tax and VAT). However, in 2015, the Parent Company had a new investment project that needed to use the branch's old mixer. This project was also eligible for tax-free investment incentives for imported goods for production.

Therefore, businesses are confused because, can they request a refund of the tax paid when they do not liquidate assets but leave them to transfer to branches with investment incentives and within the company (branches and accounting are dependent on the parent company)?

Answering this issue, according to the General Department of Customs, based on the provisions of Clause 5, Article 25 of Decree No. 08/2015/ND-CP of the Government: For import and export goods that are not subject to export tax, import tax, excise tax, VAT, environmental protection tax or tax exemption, consider exemption from export tax, import tax or apply tax rates according to tariff quotas and have been released or cleared but have subsequently changed. about non-taxable objects or purposes of tax exemption and tax exemption consideration; Apply tax rates according to tariff quotas; Goods that are raw materials and supplies imported for processing and production of exported goods and temporarily imported and re-exported goods that have been released or cleared from customs but then changed the purpose of use to domestic consumption must declare a new customs declaration. Policy on management of exported and imported goods; Tax policies for import and export goods are implemented at the time of registration of new customs declarations, unless the export goods management policy has been fully implemented at the time of registration of the original declaration.

Also according to the General Department of Customs, based on the provisions of Circular No. 219/2013/TT-BTC of the Ministry of Finance, goods that are not subject to VAT at the import stage according to the provisions of this Article, if the purpose of use is changed, must declare and pay VAT at the import stage according to regulations with the Customs agency where the customs declaration is registered.

The General Department of Customs emphasized that in case an enterprise's goods have changed their purpose of use (liquidation of goods), the enterprise must pay full import tax and VAT and will be able to declare and deduct the import VAT already paid to the domestic tax agency.

According to baohaiquan.vn

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