New Car Taxes in Vietnam: A Comprehensive Guide

Anh Tuan, a small grocery store owner on Hang Ma Street, had long dreamed of owning a small truck to facilitate his goods transportation. After years of saving, he finally had enough money to purchase a Hyundai H100 closed-box truck at a Hyundai dealership on Giai Phong Street. Overjoyed, he was taken aback by the numerous taxes and fees during the payment process.

If you’re also planning to buy a new car in Vietnam, let’s delve into the applicable taxes with xetaihanoi.edu.vn to avoid being caught off guard like Anh Tuan!

Taxes Applicable When Buying a New Car in Vietnam

Buying a new car is a significant decision, requiring thorough research into the applicable taxes and fees for optimal financial preparation. Here’s detailed information about the taxes you need to know:

1. Special Consumption Tax (SCT)

This tax applies to specific goods and services, including cars. The SCT rate is based on engine displacement:

• Cars with engines under 2,500cc: SCT rates range from 40% to 150%.
• Cars with engines over 2,500cc: SCT rates range from 60% to 150%.

Example: Anh Tuan bought a Hyundai H100 truck with a 2,500cc engine, subject to a 45% SCT. Assuming a listed price of 500 million VND, the SCT payable is: 500,000,000 x 45% = 225,000,000 VND.

2. Value Added Tax (VAT)

The current VAT rate for new cars is 10%, calculated on the selling price inclusive of SCT.

Example: Continuing with Anh Tuan’s case, the VAT payable is: (500,000,000 + 225,000,000) x 10% = 72,500,000 VND.

3. Registration Fee

This mandatory fee is payable when registering a new car. The current registration fee is 10% for passenger cars with up to 9 seats and 2% for trucks and other vehicles.

Example: As Anh Tuan bought a truck, the registration fee is 2%. The amount payable is: 500,000,000 x 2% = 10,000,000 VND.

Note: Tax and fee rates are subject to change based on government policies.

White Hyundai H100 truck

Frequently Asked Questions About Car Taxes

1. Do I need to pay the registration fee when buying a car on installment?

Answer: Yes. Whether you purchase a car outright or on installment, you must pay the full registration fee to the tax authorities before registering the vehicle.

2. Do I need to pay SCT when buying a used truck?

Answer: No. SCT only applies to brand new cars. When buying a used truck, you only need to pay VAT and the registration fee.

3. Where do I pay car taxes and fees?

Answer: You can pay directly at the Tax Department of your registered residence or online via the General Department of Taxation’s electronic portal.

Tips When Buying a New Car

• Carefully research car prices, promotions, and deals at reputable truck dealerships like Thai Phong Auto.
• Thoroughly understand the applicable taxes and fees for proper financial planning.
• Choose reputable dealerships with clear addresses, such as those on Le Van Luong and Nguyen Xien Streets, to protect your interests.