Car Purchase Taxes in Vietnam: Hidden Costs You Need to Know

Mr. Minh, owner of a grocery store in Hanoi’s Old Quarter, had long dreamed of owning a small truck to facilitate his goods transportation. Recently, after saving enough money to purchase a vehicle, he was shocked to discover the substantial taxes and fees added to the vehicle’s price. So, what taxes are involved in buying a car in Vietnam, and how are they calculated? Let’s delve into the details with Xetaihanoi.edu.vn.

Taxes Levied on Car Purchases in Vietnam

Understanding the taxes associated with buying a car will help you better manage your finances and avoid unexpected expenses like Mr. Minh’s. Here’s a breakdown of the taxes you need to pay:

1. Special Consumption Tax (SCT)

This tax is imposed on specific goods and services, including automobiles. The SCT rate depends on the vehicle’s engine displacement.

2. Value Added Tax (VAT)

VAT is calculated on the total vehicle value, including the pre-tax price and the Special Consumption Tax. The current VAT rate is 10%.

3. Registration Fee

This is a mandatory fee payable when registering a new vehicle. The registration fee varies depending on the locality. In Hanoi, the registration fee for cars with fewer than 9 seats is 12%.

Example: Mr. Minh purchased a Thaco Towner 990kg truck at the Thaco Truong Loc dealership on Nguyen Van Linh Street, Long Bien District, Hanoi. The listed price is 250 million VND. The total amount Mr. Minh has to pay is:

• Special Consumption Tax: (According to current regulations)
• VAT: (250 million + SCT) * 10%
• Registration Fee: 250 million * 12% = 30 million VND

Total: 250 million + SCT + VAT + 30 million

A Thaco Towner delivery truck on the road

Car Tax and Registration Fee Table (Reference)

Note: This table is for reference only. Tax and fee rates are subject to change according to legal regulations.

Important Considerations When Calculating Car Taxes

• Special Consumption Tax and registration fees can vary depending on the time of purchase and local regulations.
• It’s recommended to thoroughly research tax and fee information from dealerships or relevant authorities to avoid misunderstandings.

Frequently Asked Questions about Car Purchase Taxes

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

Answer: Yes. When buying a car on installment, you still have to pay all taxes and fees as you would with a cash purchase.

2. What is the registration fee payment procedure?

Answer: You can pay the registration fee at the Tax Department where the vehicle is registered.

3. Do used cars require a registration fee?

Answer: Yes. However, the registration fee for used cars is lower than for new cars.

A dealership with many trucks in the parking lot

Buy Trucks with Confidence at Xe Tai Ha Noi

If you are looking to purchase a truck, visit Xe Tai Ha Noi – the leading provider of quality and reliable trucks in Hanoi. We offer a wide range of trucks from renowned brands like Thaco, Hyundai, Isuzu, and more, at the most competitive prices in the market.

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Related Products

In addition to trucks, Xe Tai Ha Noi also offers dump trucks, specialized vehicles, and more to meet diverse customer needs.

Conclusion

We hope this article has provided you with valuable information about car purchase taxes in Vietnam. Understanding these taxes and fees will help you make informed financial decisions and choose the best option for your needs. If you have any further questions, please leave a comment below or contact Xe Tai Ha Noi directly for detailed advice.