Car Purchase Taxes in Vietnam: A Comprehensive Guide

“Buying a car is easy, paying taxes is hard” – a humorous saying that resonates with many car buyers in Vietnam. Are you unsure about the car buying process and how to calculate taxes on a new car in 2023? Don’t worry, this guide will answer all your questions about vehicle registration tax, VAT, and other fees in a clear and concise manner.

Detailed Breakdown of Car Purchase Taxes in 2023

To effectively plan your finances for your future vehicle, you need to understand the taxes and fees associated with purchasing a car. Below is a detailed breakdown of the latest car tax calculations for 2023.

1. Value Added Tax (VAT)

Value Added Tax (VAT) is an indirect tax levied on the value of goods and services when they are sold.

• Taxpayer: Individuals and organizations purchasing domestically manufactured or assembled cars.
• Tax Rate: 10% of the vehicle’s value.

Example: Mr. Minh buys a Thaco Towner 990 truck at Thaco Truong Loc dealership on Giai Phong Street, Hoang Mai District, Hanoi, with a listed price of 250 million VND. He will have to pay 25 million VND in VAT (250 million x 10%).

2. Special Consumption Tax (SCT)

Special Consumption Tax (SCT) is a tax imposed on specific goods and services, including cars.

• Taxpayer: Individuals and organizations purchasing cars.
• Tax Rate: Depends on engine displacement and vehicle type.

Example: A car with an engine displacement under 1,500 cm3 is subject to a 40% SCT.

Car with engine displacement under 1,500 cm3

3. Registration Fee

The registration fee is a mandatory fee payable when registering car ownership or right to use for the first time.

• Payer: Individuals and organizations purchasing cars.
• Fee: Varies depending on location and vehicle type.

Registration Fee for Passenger Cars:

Passenger car registration fee

Registration Fee for Trucks:

Example: Ms. Lan buys a Hyundai HD72 truck at Hyundai Dong Nam dealership on Nguyen Van Linh Street, Long Bien District, Hanoi. As it’s a truck, she is exempt from the registration fee.

4. Other Fees

In addition to the main taxes above, you will also need to pay other fees when buying a car, such as:

• License plate registration fee
• Compulsory civil liability insurance
• Comprehensive car insurance (optional)

Important Considerations When Calculating Car Taxes

• Tax rates are subject to change according to Vietnamese law.
• The tax calculation base is the selling price inclusive of VAT.
• Thoroughly research tax and fee information before purchasing a vehicle.