HCMC – Vietnam is considering refunds of excise tax paid on imported materials used to produce export goods, according to a draft government decree.
The second draft decree provides guidance for implementing the Law on Excise Tax. It states that refunds would be based on the volume of imported materials actually used for export production.
Taxpayers producing goods subject to excise tax could also deduct excise tax already paid on input materials. This includes tax paid at import, even if determined by customs, unless related to tax evasion, as well as tax paid when buying materials from domestic producers. Deductions would apply to the portion of materials used in excise-taxed products sold in the market. Non-deductible amounts could be recorded as business expenses for corporate income tax.
For biofuel, deductible excise tax would be calculated on the amount of mineral fuel purchased in the previous tax period and used for biofuel production.
Producers and blenders of biofuel could also offset unused excise tax credits from mineral fuels against excise tax liabilities on other goods and services. Any remaining balance may be carried forward or refunded in line with Ministry of Finance rules.
