Importing a Car to Vietnam: A Guide to Import Taxes

A while back, at a cafe in Cau Giay, I overheard Mr. Ba, the owner of the biggest grocery store in Dong Xa market, discussing his plans to import an Isuzu truck for his business. He was meticulously considering everything from auspicious dates to feng shui to ensure the truck would bring him prosperity. But the import taxes were causing him a real headache. I offered him some insights on calculating these taxes, and he was so grateful he treated me to a giant iced tea!

Are you also curious about how to calculate import taxes for vehicles? Let Xe Tải Hà Nội guide you through the process in this detailed article.

I. A Detailed Breakdown of Car Import Taxes

1. What are Car Import Taxes?

Car import taxes are levied on vehicles imported into Vietnam from other countries. This is a crucial tax that helps regulate the domestic auto market and protect local manufacturers.

2. Types of Car Import Taxes

To bring your dream car to Vietnam, you’ll need to pay the following taxes:

• Import Duty: This is the primary tax, calculated based on the vehicle’s value and the import duty rate.
• Special Consumption Tax: Applied to vehicles with large engine displacements.
• Value Added Tax (VAT): Calculated on the total value of the car, including import duty and special consumption tax (if applicable).

Note: Specific tax rates can vary depending on current government policies and regulations.

A modern Isuzu truck driving on a highway.

II. Calculating Car Import Taxes in Detail

To calculate car import taxes, you need to determine the following factors:

1. Taxable Value of the Imported Car

This includes:

• The price of the car in the exporting country.
• Additional costs such as shipping and insurance to a Vietnamese port.

2. Formula for Calculating Car Import Taxes

Import Duty = Taxable Value x Import Duty Rate

Where:

• Import Duty Rate depends on the type of vehicle and engine displacement.
• Example: Passenger cars with fewer than 9 seats and an engine displacement under 2,500cc have an import duty rate of 70% (as of 2023).

Note:

• Special consumption tax and VAT are also calculated using similar formulas.
• You can refer to legal documents such as the Law on Export and Import Duties No. 107/2016/QH13 and its amendments for more detailed information.