2023 New Car Tax Calculation in Vietnam: A Comprehensive Guide

Anh Tuan, a grocery store owner in Hanoi’s Ba Dinh District, finally fulfilled his dream of owning a brand new Hyundai Porter H150 truck. He purchased it from Truong Hai Auto dealership on Le Van Luong Street to facilitate his goods transportation. Overjoyed with his new purchase, Anh Tuan was taken aback when the salesperson reminded him about the registration tax. “Wait, there’s a tax for buying a new car?” he wondered.

If you’re planning to buy a new car in Vietnam, avoid being caught off guard like Anh Tuan. Let XE TẢI HÀ NỘI guide you through the 2023 new car tax calculation process in this comprehensive article!

What Taxes Are Included When Buying a New Car?

Before diving into the calculation, let’s clarify the taxes involved in a new car purchase. Currently, new car owners in Vietnam are required to pay two main taxes:

1. Registration Fee: This is a local tax regulated by the People’s Committee of each province or city, applied to cars registered for the first time in that locality. The common rate is 10% of the vehicle’s value. However, in Hanoi, it’s 12% for cars with fewer than 9 seats.

2. Value Added Tax (VAT): Applied to all goods and services, including new cars. The current VAT rate is 10%.

2023 New Car Tax Calculation in Detail

1. Calculating the Registration Fee for a New Car

Formula for Registration Fee Calculation:

Registration Fee = Taxable Value x Registration Fee Rate

Where:

• Taxable Value: The selling price of the car stated on the invoice or legal documents provided by the car dealer.
• Registration Fee Rate: Determined by each locality.

Example: Anh Tuan bought a Hyundai Porter H150 truck in Hanoi for a listed price of 400 million VND. The registration fee rate for trucks in Hanoi is 2%. Therefore, the registration fee he has to pay is: 400,000,000 x 2% = 8,000,000 VND.

2. Calculating VAT When Buying a New Car

Formula for VAT Calculation:

VAT = Pre-VAT Price x VAT Rate (10%)

Example: Continuing with Anh Tuan’s case, the VAT he has to pay for his Hyundai Porter H150 is: 400,000,000 / 1.1 x 10% = 36,363,636 VND.

Calculating truck tax

Frequently Asked Questions about New Car Tax Calculation

1. Does buying a truck through installments reduce the registration fee?

No. Whether you buy a car through installments or outright payment does not affect the registration fee.

2. Do I have to pay a registration fee when buying a used car?

Yes. However, the registration fee for a used car is lower than for a new car, specifically 50% of the registration fee for a new car of the same type.

3. Where do I pay the registration fee?

You can pay the registration fee at the tax department of the district/county where you are registered as a permanent resident or at mobile tax collection points.

Important Notes on New Car Tax Calculation

• Thoroughly research the registration fee rate in the locality where you intend to register the car.
• Request the seller to provide complete invoices and documents to facilitate tax payment.
• Complete the tax payment and car registration procedures within the stipulated timeframe to avoid penalties.

Buying a truck with installments

Conclusion

Hopefully, this article from XE TẢI HÀ NỘI has provided a clearer understanding of the 2023 new car tax calculation in Vietnam. We wish you the best in bringing your dream car home! Don’t forget to visit our website at https://xetaihanoi.edu.vn/ for more useful information about trucks!