Piaggio vehicles converted to domestic consumption must pay VAT and special consumption tax

For the raw materials and supplies used to produce re-imported export goods for domestic consumption of Piaggio Vietnam Company Limited, if the re-imported goods are determined to be previously exported goods, import tax, VAT (in case VAT deduction has been declared with the tax authority) and special consumption tax must be paid.

Photo: Illustration. Source Internet.

That is the guidance of the General Department of Customs in response to the difficulties of the Hanoi Customs Department in calculating tax on imported goods produced for export and transferred to domestic consumption by Piaggio Vietnam Company Limited.

The General Department of Customs said that in case the goods are imported materials and raw materials for the production of exported goods, when consumed domestically, they must declare and pay VAT, re-determine the taxable value, and re-determine the deadline for payment of import tax, VAT, and special consumption tax (if any) according to the provisions of Clause 9, Article 10 of Circular 194/2010/TT-BTC. Customs dossiers for re-imported goods must show that the re-imported goods are previously exported goods, with confirmation from the Customs authority according to the provisions of Clause 4, Article 51 of Circular 194.

In case the exported goods are goods produced from imported raw materials and supplies that must be re-imported to Vietnam but not recycled or re-exported, the enterprise will not be considered for a tax refund (or will not be considered for tax exemption if tax has not been paid) for the imported raw materials used to produce the exported goods that must be re-imported.

In case the Customs authority has refunded or issued a decision not to collect tax, the taxpayer must pay back the amount of tax refunded or not collected according to the provisions in Point c, Article 113 of Circular 194. If the goods are not subject to VAT at the import stage, if the purpose of use changes, the VAT at the import stage must be declared and paid according to the regulations with the Customs authority where the declaration is registered as prescribed in Article 5 of Circular 06/2012/TT-BTC.

According to the provisions of Article 2 of Circular 05/2012/TT-BTC, two-wheeled motorbikes with a cylinder capacity of over 125 cm3 are subject to special consumption tax.

According to baohaiquan.vn - LT