{"id":3074,"date":"2024-08-15T16:33:43","date_gmt":"2024-08-15T09:33:43","guid":{"rendered":"https:\/\/apluslaw.vn\/en\/?p=3074"},"modified":"2025-02-13T15:50:55","modified_gmt":"2025-02-13T08:50:55","slug":"import-tax-in-vietnam","status":"publish","type":"post","link":"https:\/\/apluslaw.vn\/en\/research\/import-tax-in-vietnam.html","title":{"rendered":"Import Tax and Duty in Vietnam – Overview"},"content":{"rendered":"

Imports to Vietnam are growing steadily every year. In this article, Apluslaw<\/a><\/span><\/strong> will provide you with some insights on how to calculate import tax in Vietnam.<\/strong><\/span><\/p>\n

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Lawyer consulting on foreign investment for enterprise.<\/figcaption><\/figure>\n

What\u2019s Import Tax in Vietnam?<\/b><\/h2>\n

Import tax<\/strong>, 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.<\/span><\/p>\n

\"import
Goods imported into Vietnam are subject to an amount called import tax.<\/figcaption><\/figure>\n

How to calculate import tax<\/b><\/h2>\n

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).<\/span><\/p>\n

Calculation Formula for the Total Tax<\/b><\/h4>\n

The general formula to calculate the total import tax is:<\/span><\/p>\n

Total Tax = Import Tax + VAT + SCT + EPT<\/b><\/p>\n

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  1. Import Tax<\/b>: This is calculated based on the value of the imported goods. The rate varies by product and country of origin.<\/span><\/li>\n
  2. VAT<\/b>: 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.<\/span><\/li>\n
  3. SCT<\/b>: This is a special tax applied to certain goods such as alcohol, tobacco, and luxury items. The rate depends on the type of product.<\/span><\/li>\n
  4. EPT<\/b>: This tax is applied to products that have an environmental impact, such as petroleum and certain chemicals.<\/span><\/li>\n<\/ol>\n

    Example Calculation<\/b><\/h4>\n

    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.<\/span><\/p>\n

      \n
    1. Import Tax: $1,000 * 10% = $100<\/span><\/li>\n
    2. VAT: ($1,000 + $100) * 10% = $110<\/span><\/li>\n<\/ol>\n

      Total Tax: $100 (Import Tax) + $110 (VAT) = $210<\/span><\/p>\n

      \"import
      Calculate import tax in Vietnam.<\/figcaption><\/figure>\n

      Value-added tax (VAT)<\/b><\/h2>\n

      According to <\/span>T<\/span>he 2008 Value-Added Tax Law<\/span><\/a> and current regulations, VAT in Vietnam can be calculated using two methods:<\/span><\/p>\n

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      1. Credit Method<\/b>: This method allows businesses to deduct the input VAT from the output VAT on their goods and services.<\/span><\/li>\n
      2. Direct Method on Added Value<\/b>: This method calculates VAT based on the added value of the goods and services.<\/span><\/li>\n<\/ol>\n

        The general formula for calculating VAT is as follows:<\/span><\/p>\n

        VAT = Taxable Value x VAT Rate<\/b><\/p>\n

        For specific details on VAT rates, please refer to Articles 9, 10, and 11 of <\/span>Circular 219\/2013\/TT-BTC<\/span><\/a>.<\/span><\/p>\n

        Special consumption tax (SCT)<\/b><\/h2>\n

        According to Article 7 of <\/span>excise taxes law<\/span><\/a>, 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.<\/span><\/p>\n

        For example, the SCT rate for alcoholic beverages can range from 35% to 65%, depending on the type and alcohol content.<\/span><\/p>\n

        The general formula for calculating VAT is as follows:<\/span><\/p>\n

        Value of special consumption x SCT rate = SCT<\/b><\/p>\n

        \"import
        Special consumption tax is applied to alcohol, tobacco, automobiles and some types of fuel.<\/figcaption><\/figure>\n

        Environmental protection tax (EPT)<\/b><\/h2>\n

        EPT is levied on goods that can cause environmental pollution.<\/strong> 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.<\/span><\/p>\n

        For specific details on VAT rates, please refer to Articles 8 of <\/span>Environmental Protection Tax Law<\/span><\/a> as guided by <\/span>Resolution 579\/2018\/UBTVQH14<\/span><\/a>.<\/span><\/p>\n

        Exemption from import tax<\/b><\/h2>\n

        Article 16 of <\/span>Law No. 107\/2016\/QH13 on export and import duty regulates tax<\/span><\/a> exemptions for many other products as well, including:<\/strong><\/p>\n