Vietnam Car Tax Guide: What to Know Before Buying

“First the car, second the wife, third the gambling, fourth the wine” – This humorous saying highlights the importance of cars in Vietnamese culture. However, before buying a car in Vietnam, understanding the various car taxes is crucial. This guide will help you budget accurately and avoid unexpected expenses.

Types of Car Taxes in Vietnam

Vietnam’s car tax system is complex, encompassing several different taxes. Here’s a breakdown:

1. Special Consumption Tax (SCT)

This tax applies to specific goods and services, including cars. The SCT rate depends on engine displacement and the car’s origin. For instance, a locally assembled car with an engine under 1.5L will have a lower SCT than an imported car with an engine over 5.0L.

Note: SCT rates are subject to change based on government policies.

2. Value Added Tax (VAT)

VAT applies to most goods and services in Vietnam, including cars. The current VAT rate is 10%.

3. Registration Fee

This mandatory fee is paid when registering a new car. The registration fee is calculated based on the car’s value and the registration location. For example, the fee in Hanoi and Ho Chi Minh City is 12% of the car’s value, while it’s 10% in other provinces.

Example: Anh Minh, a XE TẢI HÀ NỘI customer, shared: “Initially, I was overwhelmed by the taxes and fees when buying a Dongfeng truck. Thankfully, the staff provided thorough explanations, clarifying each tax, which gave me peace of mind.”

4. Other Fees

Besides the main taxes, other fees apply when purchasing a car:

• License Plate Fee: Varies depending on the registration location.
• Compulsory Civil Liability Insurance: Mandatory for all vehicles.
• Road Maintenance Fee: An annual fee.

A Dongfeng truck parked on a street.

Car Tax Reference Table

Note: This table is for reference only; actual tax rates may vary.

A red Mercedes-Benz car in a garage.

Frequently Asked Questions About Car Taxes

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

Answer: Yes, the registration fee is still required when purchasing a truck through installments.

2. Does the Special Consumption Tax apply to used cars?

Answer: No, the SCT only applies to new cars.

3. How can I calculate the exact amount of tax due when buying a car?

Answer: You can use online car tax calculators or contact a car dealership for detailed advice.

Conclusion

Understanding car taxes before purchasing a vehicle in Vietnam is essential. We hope this article has provided valuable information. If you have any further questions, please leave a comment below or contact XE TẢI HÀ NỘI directly for detailed consultation.