Hanoi Car Registration Tax: What You Need to Know

“Buying a car is like getting married,” says Mr. Ba, a seasoned truck driver in Hanoi. “You have to consider everything carefully, especially the taxes.” Indeed, car registration tax is a significant expense that anyone buying a car in Hanoi must consider. So how can you stay informed about this tax? This article will answer all your questions about car registration tax in Hanoi.

What is Car Registration Tax?

Car registration tax is an indirect tax levied on the value of the vehicle you purchase. This tax is paid to the government when you register a new vehicle. Simply put, it’s like a “fee” for the right to use a car in Vietnam.

Paying car registration tax in Hanoi

Car Registration Tax Rates in Hanoi

In Hanoi, the current car registration tax rate is 10% for domestically manufactured or assembled cars and 12% for fully imported cars. This rate applies to both passenger cars and trucks.

You can learn more about 2019 car registration tax to understand how this tax has changed over the years.

How to Calculate Car Registration Tax

To calculate the amount of car registration tax you need to pay, you can use the following simple formula:

Registration Tax = Vehicle Value x Tax Rate

Where:

• Vehicle Value: is the selling price of the car you are buying, including VAT.
• Tax Rate: is 10% or 12% depending on the origin of the car.

For example: If you buy a domestically produced truck for 500 million VND, the registration tax you have to pay is: 500,000,000 x 10% = 50,000,000 VND.

Calculating car registration tax

Car Registration Tax Payment Procedures in Hanoi

To pay car registration tax, you need to prepare a complete dossier including:

• Vehicle registration certificate (original).
• ID card/Citizen ID/Passport of the vehicle owner (photocopy).
• Other documents as required by the tax authority.

You can pay tax directly at the Tax Department of the district/ward where you have permanent or temporary residence registration. You can also pay taxes online through the General Department of Taxation’s electronic portal.

Notes on Paying Car Registration Tax

• Carefully research the registration tax rate applicable to the type of vehicle you intend to purchase to avoid overpaying.
• Prepare a complete dossier as required to avoid multiple trips.
• Pay taxes on time to avoid penalties.
• Keep all documents related to tax payment for future reference.

Frequently Asked Questions about Car Registration Tax in Hanoi

Is the registration tax for used cars different from new cars?

Yes, the registration tax for used cars is calculated based on the vehicle’s value at the time of ownership transfer and is usually lower than for new cars.

How do I pay registration tax if I buy a car on installment?

You are still required to pay 100% of the registration tax for the vehicle when registering it. The bank or lending institution will not be responsible for paying the tax on your behalf.

Are there any car registration tax exemptions?

Currently, there are some cases where car registration tax is reduced, such as for people with disabilities and public passenger transport companies.

Car registration tax reduction

In addition to learning about registration tax, if you are looking to buy a truck, you can refer to information on Hanoi self-drive car rental prices or car rental quotes for more options that suit your needs.

Conclusion

Hopefully, this article has provided you with useful information about car registration tax in Hanoi. Understanding tax regulations will help you avoid unnecessary troubles and feel more secure when bringing your “beloved car” home.

If you need further assistance with trucks or have any questions, please contact us by phone: 0968239999, Email: [email protected] or visit us at: TT36 – CN9 Road, Tu Liem Industrial Zone, Phuong Canh Ward, Nam Tu Liem District, Hanoi. We have a 24/7 customer service team.