The car import tax system in VietNam

HANOI FOREIGN TRADE UNIVERSITY

3 main points

1. How to calculate the after-tax car price.

2. The reasons why the GOV sets the tax high.

3. Forcast the car impost in few years after.

1. Calculate the after-tax car price

Tax total

VAT

Excisetax

Impost

Taxable price + = The after-tax price

1. Calculate the after-tax car price

• 1.1 Impost

Impost = (Taxable price) x (Impost rate)

Impost rate : based on the cylinder capacity

•83%Less than 2500 cc

•80%2500 cc or more

Need fosusing!

1. Calculate the after-tax car price

• 1.2 Excise tax ( the special consumption tax )

Excise tax = (Taxable price + Impost) x Excise tax rate

Excise tax rate : based on the cylinder capacity too.

•45%Less than 2000 cc

•50%From 2000 to 3000 cc

•60%More than 3000 cc

Need fosusing!

1. Calculate the after-tax car price

• 1.3 VAT

VAT = (Taxable price + Impost + Excise tax) x 10%

Need fosusing!

VAT rate is fixed at 10% for every kinds of goods.

Example

Example

Toyota Camry 3.5 LE 2009

Price in America: $20.000

Toyota Camry 3.5 LE 2009

3500 cc of cylinder capacity

Impost rate

Excise tax rate VAT

1. Calculate the after-tax car priceTA

X TO

TAL

Impost = $20.000 x 80% = $16.000

Excise tax = ($20.000 + $16.000) x 60% = $21.600

VAT = ($20.000 + $16.000 + $21.600) x 10% = $5.760

EXAMPLE

+

+

$ 43.360

1. Calculate the after-tax car price

EXAMPLE

$ 43.360

The after-tax price:

$ 20.000 + = $ 63.360:-ss

$63.360 / $20.000 =

3.168

2. The reasons why the GOV sets the tax high

2. The reasons why the GOV sets the tax high

Protect the domestic automobile production

Transport infrastructure

Increase the government’s revenues

2. The reasons why the GOV sets the tax high

Protect the domestic automobile production

Transport infrastructure

Increase the government revenues

2. The reasons why the GOV sets the tax high

Protect the domestic automobile production

Transport infrastructure

Increase the government revenues

2. The reasons why the GOV sets the tax high

Protect the domestic automobile production

Transport infrastructure

Increase the government’s revenues

3. Forcast the impost rate a few years after

- In 2018, the impost rate will be 0% But just inside ASEAN:D

2012 2014 20170

102030405060708090

Impost rate

Impost rate

1. Calculate the after-tax car price

Tax total

VAT

Excisetax

Impost

Taxable price + = The after-tax price

2. The reasons why the GOV sets the tax high

Protect the domestic automobile production

Transport infrastructure

Increase the government revenues

3. Forcast the impost rate a few years after

- In 2018, the impost rate will be 0% But just inside ASEAN

2012 2014 20170

102030405060708090

Impost rate

Impost rate