2023 Car Tax Calculation in Vietnam: A Comprehensive Guide

Anh Tuan, a construction material shop owner in Hanoi, is considering buying a new truck to meet the increasing demand for goods transportation. However, he’s unsure about the tax calculations involved in purchasing a new vehicle. This article addresses common questions about calculating car taxes in Vietnam.

How to Calculate Car Taxes in 2023

Taxes and Fees When Buying a New Car

When purchasing a new car in Vietnam, you must pay the following taxes and fees:

• Registration Fee: This fee is paid when registering car ownership for the first time. The current rate is 10% for cars with fewer than 9 seats, trucks, and some specialized vehicles. In Hanoi, the registration fee is 12% for cars with fewer than 9 seats.
• License Plate Fee: This fee varies depending on the locality.
• Road Maintenance Fee: This fee applies to all road motor vehicles.
• Compulsory Civil Liability Insurance: This insurance is mandatory for all vehicles on the road.
• Other Fees: These may include registration service fees, inspection fees, and road tolls (if applicable).

Car Tax Calculation Formula

To illustrate, let’s calculate the taxes for a Hyundai H150 closed-box truck in Hanoi:

Listed Price: 500,000,000 VND

Registration Fee (10%): 500,000,000 x 10% = 50,000,000 VND

License Plate Fee (Hanoi): 20,000,000 VND

Road Maintenance Fee (12 months): 1,560,000 VND

Civil Liability Insurance: 873,400 VND

Total Payment: 500,000,000 + 50,000,000 + 20,000,000 + 1,560,000 + 873,400 = 572,433,400 VND

Note:

• License plate fees may vary by location.
• This calculation is for illustrative purposes and doesn’t include dealer discounts or promotions.

Hyundai H150 closed-box truck

Important Considerations When Calculating Car Taxes

• Thoroughly research the taxes and fees associated with buying a new car.
• Consult with dealership staff or experts for detailed and accurate advice.
• Prepare financially to avoid unexpected expenses.

Cargo transportation

Frequently Asked Questions

How is the Registration Fee Calculated for Used Cars?

The registration fee for used cars is 2% of the vehicle’s value at the time of ownership transfer.

Should I Buy a Truck Through Installment Payments?

Buying a truck through installments can reduce the initial financial burden, but carefully consider your financial capabilities and loan interest rates.