VCN- Customs News received a question from a reader on the Customs procedures and the Import Duty policy for automobiles as gifts, or donations: “I am a manager of a start up business, I have a child who is living in Canada, now my child wants to give me his used car. So, what are the procedures I must do when importing that car to Vietnam? Do I pay the tax or not ? If yes, how much is it ?”.
|Imported automobiles Photo: H.P|
Answering the questions of the reader, the Customs Control and Supervision Department consulted as follow:
For the Customs procedure: Pursuant to provisions in Article 2 of Circular No. 143/2015/TT-BTC dated September 11, 2014 of the Ministry of Finance regulating Customs procedures and management of automobiles and motorbikes of entities who are permitted to import or temporarily import for non-commercial purposes; so the questioner is one who is allowed to import a car as gifts or donations. The Customs procedure is implemented under the provision in Article 4 and Article 5 of Circular 143/2015/TT-BTC.
However, the reader should pay attention to the conditions for importing used car as gifts, or donations: the import of used cars (including the case of gifts or donations) is adjusted by provisions under Circular 20/2011/TT-BTC dated May 12, 2011 of the Ministry of Industry and Trade (excluding receiver of gifts or donations is an organization which is not adjusted by Circular 20/2011/TT-BCT).
The used car imported must meet the conditions stipulated by Joint Circular No.03/2006/TT-BTM-BGTVT-BTC-BCA of the Ministry of Trade (current the Ministry of Industry and Trade), the Ministry of Transport, the Ministry of Finance and the Ministry of Public Security guiding the import of used cars of less than 16 seats under the Government’s Decree 12/2006/ND-CP.
|Consultations for imported automobiles should be immediately implemented|
For the tax policy: The question of the reader provides insufficient information so the Customs Legal Consultant Team does not have basis to answer specifically. However, the used car as gifts or donations must fully pay the tax as per the current tax policies when importing including: the Import duty, the Valued added tax and the Special consumption tax.
Any other questions, please to contact the Customs Branch implementing the Customs procedures for further guidance.
By the Legal Consultant Team/ Ngoc Loan