How are used cars imported to Vietnam subject to tax?

According to current regulations, old cars imported to Vietnam must pay 3 types of taxes including: absolute import tax + special consumption tax + VAT.

Calculation of These 3 types of taxes are taxes on top of taxes.

In which:

• Absolute import tax: According to regulations in Decree No. 26 /2023/ND-CP of the Government issued on May 31, 2023 for each type of vehicle.
  Note that this Decree takes effect from July 15.

For passenger cars, specifically passenger cars with 9 seats or less (including the driver), the absolute import tax calculation method is as follows:

In the above formula X is the tax calculated according to the tax rate of new cars of the same type.
Specifically X = taxable price of used cars x tax rate of the tax line on new cars of the same type specified in Decree No. 26.

• Special consumption tax = tax rate of vehicle type x (price vehicle + absolute import tax)

(tax rate determined according to Article 7 of the Law on Special Consumption Tax)

• VAT: 10% x (car price + absolute import tax + special consumption tax)

Total tax when importing used cars to Vietnam must be paid as:

Tax amount payable = Import tax + special consumption tax + value added tax

Fake Use an old Suzuki Celerio with a cylinder capacity of 998cc (less than 1 liter) with an import price of 200,000,000 VND. Other taxes payable are:

– Absolute import tax = 10,000 USD (approximately 235,000,000 VND)

– Special consumption tax = (200,000,000 + 235,000,000) x 45% = 195,750,000 VND

– VAT = (200,000,000 + 235,000,000 + 195,750,000) x 10% = 63,075,000 VND

– Total tax payable = 493,825,000 VND

So if not Calculate the total transportation fee for the above vehicle upon customs clearance: 200,000,000 VND (car fare) + 493,825,000 VND (total tax) = 693,825,000 VND.

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