How to calculate import tax on goods into Vietnam

If based on the method of taxing import in Vietnam, import tax can be divided into:

• Absolute tax: is a tax charged at a certain amount for each unit of imported and exported goods, regardless of the import and export value.
• Tax by percentage: this tax is calculated as a percentage (%) on the actual import and export value of each unit of imported and exported goods.
• Mixed tax: is the case of applying a mixture of absolute tax and percentage tax

Subjects subject to import tax

1. Goods imported or exported across Vietnam’s border.
2. Goods exported from the domestic market into the non-tariff zone, goods imported from the non-tariff zone into the domestic market.
3. On-spot export and import goods and export and import goods of enterprises that exercise the right to export, to import, or to distribute.

Differentiate import tax rates

Import tax rates use tax rates of percentages, absolute and differentiated for each item to guide import activities. In addition, it is also differentiated by market area, in order to implement the trade policy of the State of Vietnam.

Consists of:

Preferential tax rate:

• Applies to imported goods originating from countries, groups of countries or territories that apply most-favored-nation treatment in trade relations with Vietnam.
• Taxpayers declare and take responsibility before the law for the export of goods as a basis for determining preferential import tax rates.

Normal tax rate:

Normal tax rates apply to imported goods originating from countries, groups of countries or territories that do not provide most-favored nation treatment and do not grant special import tax incentives to Vietnam.
The normal tax rate is set no more than 70% higher than the preferential tax rate of each respective item set by the Government.

Normal tax rate = Preferential tax rate x 150%

Additional tax

Goods imported in the following cases, in addition to being subject to tax as prescribed, are also subject to additional tax:

• The selling price of goods imported into Vietnam is too low compared to the normal price due to being dumped or subsidized by the exporting country, causing difficulties for the development of Vietnam’s production of similar goods.
• Goods imported into Vietnam originate from a country where that country discriminates on import tax or has other discriminatory measures against Vietnamese goods.

Import tax calculation methods include

• Percentage method of tax calculation with preferential tax rate, special preferential tax rate or ordinary tax rate.
• Absolute tax calculation method
• Mixed tax calculation method
• Taxes on imported goods subject to tariff quotas

How to calculate import tax on goods?

For goods subject to import tax as a percentage

Import tax payable = Import tax calculation value x Import tax rate

In there:

• Import tax calculation value = Cost of goods + international freight according to delivery conditions + additional amounts/costs incurred until the port of entry.
• Import tax rate: depending on the HS code to find out the tax rate, or goods with preferential C/O will apply the tax rate of goods with C/O.

For Goods, import tax is applied at the absolute tax rate

Import tax = Actual quantity of goods imported x Absolute tax rate per unit of goods

Calculating excise tax

Special consumption tax = Taxable value of excise tax x Tax rate

In which: Value for calculation of special consumption tax = (Import tax + Value for calculation of import tax) x tax rate

Calculate anti-dumping tax

Anti-dumping tax = Taxable value of anti-dumping tax x Anti-dumping tax rate

In which: Taxable value of anti-dumping tax = dutiable value + import tax + special consumption tax.

Calculating environmental protection tax

Environmental protection tax = Taxable value x Environmental protection tax = Quantity of goods x Absolute tax rate

How to calculate VAT on imported goods?

VAT on imported goods = (Validable value of import tax + import tax (if any) + special consumption tax (if any) + environmental protection tax (if any) ) x VAT rate get a raise

In there:

Import tax calculation value = Cost of goods + international freight according to delivery conditions + amounts to be added.

Value-added tax (VAT) rate: depending on the HS code to find out the tax rate specified for the item according to the tax schedule prescribed by the state.

Note:

• It is mandatory to calculate tax according to the above order to get the correct amount of tax payable for imported goods.
• For each item, there will be different taxes depending on the nature. To check what taxes the items you intend to import are subject to, you can look up the tax table here or contact (+84) 98.487.0199 for assistance.

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