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Import Tax and Duty in Vietnam – Overview

Imports to Vietnam are growing steadily every year. In this article, Apluslaw will provide you with some insights on how to calculate import tax in Vietnam.

What’s Import Tax in Vietnam?

Import tax, also known as import duty, is a type of tax collected on goods imported into Vietnam. This tax is part of a broader category of taxes known as customs duties. Import tax is designed to protect domestic industries, regulate trade, and generate revenue for the government. The rate of import tax can vary depending on the type of goods being imported, their value, and the country of origin.

How to calculate import tax

Calculating import tax in Vietnam involves several steps and considerations. The total tax amount includes not only the import tax itself but also other related taxes such as Value-Added Tax (VAT), Special Consumption Tax (SCT), and Environmental Protection Tax (EPT).

Calculation Formula for the Total Tax

The general formula to calculate the total import tax is:

Total Tax = Import Tax + VAT + SCT + EPT

1. Import Tax: This is calculated based on the value of the imported goods. The rate varies by product and country of origin.
2. VAT: In Vietnam, the standard VAT rate is 10%. VAT is applied to the total value of the goods plus import tax and SCT, if applicable.
3. SCT: This is a special tax applied to certain goods such as alcohol, tobacco, and luxury items. The rate depends on the type of product.
4. EPT: This tax is applied to products that have an environmental impact, such as petroleum and certain chemicals.

Example Calculation

Suppose you are importing a product with a customs value of $1,000. The import tax rate is 10%, the VAT rate is 10%, and there is no SCT or EPT applied.

1. Import Tax: $1,000 * 10% = $100
2. VAT: ($1,000 + $100) * 10% = $110

Total Tax: $100 (Import Tax) + $110 (VAT) = $210

Value-added tax (VAT)

According to The 2008 Value-Added Tax Law and current regulations, VAT in Vietnam can be calculated using two methods:

1. Credit Method: This method allows businesses to deduct the input VAT from the output VAT on their goods and services.
2. Direct Method on Added Value: This method calculates VAT based on the added value of the goods and services.

The general formula for calculating VAT is as follows:

VAT = Taxable Value x VAT Rate

For specific details on VAT rates, please refer to Articles 9, 10, and 11 of Circular 219/2013/TT-BTC.

Special consumption tax (SCT)

According to Article 7 of excise taxes law, SCT is applied to certain goods that are considered luxury items or that have potential negative effects on health or the environment. These goods include alcohol, tobacco, automobiles, and certain types of fuel. The SCT rates vary depending on the product.

For example, the SCT rate for alcoholic beverages can range from 35% to 65%, depending on the type and alcohol content.

The general formula for calculating VAT is as follows:

Value of special consumption x SCT rate = SCT

Environmental protection tax (EPT)

EPT is levied on goods that can cause environmental pollution. These include petroleum products, coal, and certain chemicals. The rates vary depending on the specific environmental impact of the goods. The purpose of EPT is to mitigate the environmental damage caused by these products and to promote the use of environmentally friendly alternatives.

For specific details on VAT rates, please refer to Articles 8 of Environmental Protection Tax Law as guided by Resolution 579/2018/UBTVQH14.

Exemption from import tax

Article 16 of Law No. 107/2016/QH13 on export and import duty regulates tax exemptions for many other products as well, including:

• Goods imported for processing and subsequently re-exported
• Machinery and equipment imported to form fixed assets of investment projects
• Raw materials, supplies, and components for processing and manufacturing export products
• Goods imported for use in scientific research and technological development

To qualify for an exemption, importers must comply with specific requirements and provide the necessary documentation.

Import Tax consulting lawyer service

Navigating the complexities of import tax and duty regulations in Vietnam can be challenging. Therefore, consulting with an import tax lawyer at Aplus Law can be very beneficial. We can provide services such as:

• Assessing and advising on tax liabilities
• Ensuring compliance with relevant laws and regulations
• Assisting with documentation and filing
• Representing clients in disputes with customs authorities
• Advising on potential tax exemptions and incentives
• Etc.

Consulting with a lawyer can help businesses avoid costly mistakes and ensure they take full advantage of any available tax benefits.

A+ lawyers provide tax legal advice

With a team of experienced, talented, enthusiastic and dedicated lawyers, A+ Law is proud to be the leading unit in consulting and resolving tax issues for foreign investors including the following services:

• Consulting on determining tax obligations: tax amount payable, tax exemption, tax reduction, tax deduction, tax calculation price, tax rate.
• Consulting on procedures: registration, declaration, tax payment, tax settlement, inspection and handling of violations, tax complaints.
• Consulting on accounting regimes: accounting standards, invoices, documents.
• Consulting on cooperation and business plans: forecasting arising tax obligations
• Authorized representative to carry out tax procedures.

Reasons for choosing Law A+:

Good expertise, lots of experience

A+ Law’s team of lawyers are all excellent lawyers, familiar with legal regulations, and understand how litigation agencies and Party supervision agencies operate. In addition, A+ lawyers have fought and are experienced in criminal cases.

Understanding

A+ Lawyers understands the fear and confusion of clients when faced with a situation where they may have to go to jail, may be unjustly wronged, and wishes to receive full support 24/7 from expertise to safety. psychological mind. Therefore, we will do our best to bring peace of mind and fairness to our customers and clients.

Committed to the end

The journey to achieving justice for customers may not be smooth and straightforward. That journey may take many years and many levels of trial. A+ Lawyer commits to accompany and protect clients until justice and fairness are achieved.

Import tax in Vietnam includes duties on goods brought into the country to protect domestic industries and generate revenue. It consists of the import tax, Value-Added Tax (VAT), Special Consumption Tax (SCT), and Environmental Protection Tax (EPT). The standard VAT rate is 10%, with SCT applied to luxury items and EPT on environmentally impactful goods. Exemptions are available for specific sectors like investment projects and scientific research. If you still have any questions related to this issue, please contact lawyer A+ via email: contact@apluslaw.vn or via phone number: 0899511010 for support and advice.