Importing a Car to Vietnam: Understanding Import Taxes

“Building a house, getting married, buying a buffalo” – three major milestones in Vietnamese culture. Today, buying a car, especially an imported one, is also considered a significant achievement. However, beyond choosing the make, model, and a reputable dealer like XE TẢI HÀ NỘI on Lac Long Quan Street, Tay Ho District, understanding import taxes is crucial for a smooth and cost-effective purchase.

Navigating the Maze of Import Car Taxes: What You Need to Know

Importing a car to Vietnam involves various inspections, assessments, and taxes. This is why imported cars often cost more than domestically assembled vehicles. XE TẢI HÀ NỘI provides a breakdown of the applicable taxes:

1. Import Duty: The First Hurdle

Import duty applies to all goods imported into Vietnam, including cars. The rate depends on the car’s origin and engine displacement.

For example, cars originating from ASEAN countries currently enjoy a 0% import duty. However, for vehicles from non-ASEAN countries, the rate can reach up to 70% of the car’s value.

Car being imported to Vietnam from an ASEAN country

2. Special Consumption Tax: The Burden on Luxury Cars

The special consumption tax (SCT) targets specific goods and services, including automobiles. The SCT rate for imported cars depends on engine displacement. Larger engines incur higher taxes.

For instance, cars with engines smaller than 1,500cc have a 40% SCT, while those exceeding 6,000cc face rates up to 150%.

Luxury car on a highway subject to Special Consumption Tax

3. Value Added Tax (VAT): The Essential Levy

Value Added Tax (VAT) is a consumption tax levied on the value added to goods and services during production and distribution. The current VAT rate is 10%, applied to both imported and domestically assembled cars.

Note: Besides these three main taxes, importing a car also involves other costs like shipping, insurance, and registration fees.