Used Truck Transfer Tax in Hanoi: What to Know Before You Buy

Last week, my buddy called me excitedly: “Hey, I’m thinking of buying a used truck in My Dinh, wanna come check it out with me?”. He boasted about a 2018 Isuzu truck, reasonably priced, with the owner guaranteeing its pristine condition. But reality hit hard. At the dealership, after inspecting the truck, we were dumbfounded by the vague paperwork and the surprisingly complicated transfer procedures. Before even buying the truck, we were grappling with a mountain of documents, and the used vehicle transfer tax made my friend’s face fall.

This article will help you understand the transfer tax when buying a used truck in Hanoi, avoiding a similar predicament.

What is Used Vehicle Transfer Tax?

The used vehicle transfer tax is a mandatory fee that the buyer must pay to the government when transferring ownership of a vehicle. It’s an indirect tax levied on assets when ownership changes hands.

Why Pay Transfer Tax?

Paying the transfer tax when buying a used truck serves several purposes:

• Increases government revenue.
• Controls the buying, selling, and transfer of vehicles.
• Limits the number of vehicles with unclear origins.

How is the Used Truck Transfer Tax Calculated?

The used truck transfer tax is calculated based on the vehicle’s value at the time of transfer. Specifically:

• Trucks: Tax Amount = 2% x Vehicle Value at Time of Transfer.
• Note: The vehicle’s value at the time of transfer is determined by the local tax authority where the buyer is registered, based on the minimum price list issued by the Ministry of Finance.

Example: Mr. Nam buys a used truck in Cau Giay, Hanoi for 300 million VND. The tax authority assesses the vehicle’s value at 250 million VND. Therefore, Mr. Nam must pay a transfer tax of: 2% x 250,000,000 = 5,000,000 VND.

For a clearer understanding of the tax calculation process, refer to the following illustration:

Used truck transfer tax calculation process

Exemptions and Reductions for Used Truck Transfer Tax

• Vehicles used for national defense and security purposes.
• Vehicles used for search and rescue operations.
• Garbage trucks and street watering trucks.
• Vehicles belonging to agencies and organizations eligible for tax exemptions or reductions under the law.

Important Notes on Paying Used Vehicle Transfer Tax

• Prepare all necessary documents as required.
• Pay the tax on time to avoid penalties.
• Choose a reputable vehicle dealership for advice and support.
• Carefully check the vehicle’s paperwork before making a purchase.

Besides understanding the regulations, you should also be aware of common pitfalls when buying a used truck. See the illustration below:

Common mistakes to avoid when buying a used truck

Frequently Asked Questions about Used Truck Transfer Tax

1. Where to Pay Used Truck Transfer Tax?

You can pay the transfer tax at:

• The district/county tax branch where the buyer is registered.
• Mobile tax collection points.
• Online tax payment portals.

2. What are the Procedures for Transferring Ownership of a Used Truck?

• Vehicle registration certificate.
• Vehicle inspection certificate.
• Identity card/Citizen identity card of the seller and buyer.
• Vehicle purchase agreement.
• Transfer tax payment certificate.

Safe and Reliable Used Truck Purchase at Xe Tai Ha Noi

Thoroughly understanding the transfer tax when buying a used truck is crucial to avoid risks and protect your interests. For a smooth and hassle-free used truck purchase, choose a reputable dealer like Xe Tai Ha Noi. With years of experience in the truck trading industry, Xe Tai Ha Noi is committed to providing quality vehicles at reasonable prices, along with professional and dedicated consulting services.

Contact Xe Tai Ha Noi for assistance:

• Address: No. … street …, ward …, district …, Hanoi
• Hotline: …

Xe Tai Ha Noi also offers other services such as:

• New truck sales from brands like Hino, Hyundai, Isuzu,…
• Truck rental services.
• Freight transportation services.

For a visual overview of Xe Tai Ha Noi’s services, see the following illustration: