Tax Refund Procedures for Businesses when EVFTA Is Enacted

10:17:49 AM | 7/13/2020

EVFTA and CPTTP are the first two trade agreements in which Vietnam pledged to cut export taxes. To enjoy export tax preferences according to the EVFTA, enterprises must meet certain procedures.

Specifically, at the time of exporting, they still have to declare tariff rates like universal export tariff as per Decree 125/2017/ND-CP of the Government (Decree 57/2020/ND-CP from July 10).

When goods are imported into the EU market, they can submit documents of proof of export to the EU within one year.

“At that time, the customs office will solve the overpaid tax for businesses, or in other words, refunding the tax,” said an official from the Export and Import Tax Bureau under the General Department of Customs.

Enterprises must send a written request for settlement of overpaid tax as per Circular 39/2018/TT-BTC. In addition, they must add documents proving that its transport destination is one of the EU member states and show import declarations into the EU member state.

After they submit all documents, the customs office will guide them to add declaration information. If the export tariff according to EVFTA is lower than the universal export tax, enterprises will get a refund of overpaid tax.

Specifically, according to Vietnam’s export tariff commitments under the EVFTA, Vietnam pledges to abolish export duties on goods exported to the EU with a 15-year roadmap, except for some important commodities like crude oil and coal (except for coking coal and coke).

Vietnam’s export tariff commitments in the EVFTA are essentially similar to those in the CPTPP.

Source: Vietnam Business Forum