Are electric cars eligible for registration fee exemption in Vietnam until February 28, 2027?

Are electric cars eligible for registration fee exemption in Vietnam until February 28, 2027?

The Ministry of Finance has recently published a draft Decree amending and supplementing certain articles of Decree 10/2022/ND-CP dated January 15, 2022, of the Government of Vietnam on registration fees.

View detailed Draft Decree amending certain articles of Decree 10/2022/ND-CP dated January 15, 2022, of the Government of Vietnam on registration fees...Download

Specifically, in Article 1 of the Draft, it proposes to amend and supplement point c, clause 5, Article 8 of Decree 10/2022/ND-CP regarding registration fee rates for electric cars as follows:

Article 1. Amend and supplement point c, clause 5, Article 8 of Decree No. 10/2022/ND-CP dated January 15, 2022, of the Government of Vietnam on registration fees, as follows:

“c) Battery electric cars: From the effective date of this Decree until the end of February 28, 2027: the first-time registration fee is 0%."

Thus, the draft Decree proposes to continue the exemption from registration fees for electric cars until the end of February 28, 2027.

Are electric cars eligible for registration fee exemption in Vietnam until February 28, 2027? (Image from the Internet)

From March 1, 2025, how much is the registration fee for electric cars in Vietnam?

Based on point c, clause 5, Article 8 of Decree 10/2022/ND-CP, the specific registration fee rate for battery electric cars is as follows:

Registration Fee Rate by Percentage (%)

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5. Cars, trailers or semi-trailers towed by cars, vehicles similar to cars: The rate is 2%.

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c) Battery electric cars:

- For the first 3 years from the effective date of this Decree: the first-time registration fee is 0%.

- For the next 2 years: the first-time registration fee is 50% of the rate for gasoline, diesel cars with the same seating capacity.

d) Other cars specified in points a, b, and c of this clause: The second-time registration fee and subsequent fees are 2% applied uniformly nationwide.

Based on the type of vehicle recorded in the Certificate of Technical Safety and Environmental Protection issued by the Vietnam Registry, the tax authority determines the registration fee rate for cars, trailers, or semi-trailers pulled by cars, vehicles similar to cars under the provisions of this clause.

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According to these regulations, from March 1, 2025 (exactly three years since Decree 10/2022/ND-CP came into effect), the first-time registration fee for electric cars will be 50% of the fee for gasoline, diesel cars with the same seating capacity over the next 2 years.

Who is Subject to Registration Fees for Battery electric cars?

Based on Article 4 of Decree 10/2022/ND-CP, the subjects liable for registration fees of battery electric cars are organizations, individuals owning battery electric cars when registering ownership, rights of use with the competent state authority.

When to declare and pay registration fees for electric cars in Vietnam?

According to Article 11 of Decree 10/2022/ND-CP regarding the declaration of registration fees, the following provisions apply:

- Organizations, individuals declare and pay registration fees in accordance with the law on tax management when registering ownership, rights of use with the competent state authority.

- Electronic data on registration fee payment through the State Treasury, commercial banks, or intermediary payment service providers are digitally signed by the General Department of Taxation and provided on the National Public Service Portal, having the same value as paper documents for traffic police authorities, natural resources and environment agencies, and other competent state agencies that have connected to the National Public Service Portal for accessing and extracting data for administrative procedures related to registering ownership, usage rights of assets.