Vietnam Truck Tax Calculation: A Comprehensive Guide

Anh Tuan, a construction material shop owner on Nguyen Trai Street, Ha Dong, had long dreamed of owning a truck. Finally, after years of hard work, he saved enough money to purchase his dream Hyundai HD120S truck. His joy overflowed when he received the vehicle with the license plate 30E-123.45. However, alongside the excitement, Anh Tuan was also concerned about the taxes and fees associated with buying a truck. Is there a “secret formula” to help him calculate accurately and optimize costs?

This article will provide you with a detailed guide on how to calculate truck taxes in Vietnam, helping you confidently understand the cost breakdown, just like Anh Tuan.

Taxes and Fees for Truck Purchases in Vietnam

When purchasing a truck, you are required to pay several mandatory taxes and fees, including:

1. Registration Fee:

• This fee must be paid before registering the vehicle.
• The fee is calculated as a percentage of the vehicle’s value.
• Currently, the rate is 10% for cars with fewer than 9 seats in Hanoi and 12% for other provinces.
• For trucks, the registration fee is calculated at 2% of the vehicle’s value.

2. Special Consumption Tax (SCT):

• This tax is levied on goods and services subject to special consumption tax, including automobiles.
• The SCT rate for trucks ranges from 0% to 15% depending on engine displacement.

3. Value Added Tax (VAT):

• The VAT rate for trucks is 10%.

Detailed Truck Tax Calculation

To calculate the on-the-road cost of your truck, let’s look at a specific example of how to calculate taxes for Anh Tuan’s Hyundai HD120S truck, assuming a listed price of 800,000,000 VND:

1. Registration Fee:

• Rate: 2%
• Amount payable: 800,000,000 VND x 2% = 16,000,000 VND

2. Special Consumption Tax:

• Assuming the engine displacement of the Hyundai HD120S truck is 3,907 cm3, the applicable SCT rate is 20%
• Amount payable: 800,000,000 VND x 20% = 160,000,000 VND

3. Value Added Tax (VAT):

• Rate: 10%
• Amount payable: (800,000,000 VND + 160,000,000 VND) x 10% = 96,000,000 VND

Total taxes and fees Anh Tuan needs to pay:

16,000,000 VND + 160,000,000 VND + 96,000,000 VND = 272,000,000 VND

Hyundai HD120S truck

Vietnamese Dong bills

Vehicle registration form

Note:

• The above calculation is for reference only and does not include other costs such as license plate registration fees, insurance fees, road fees, etc.
• For the exact amount of tax payable, you should contact your local tax authority or truck dealer.