Registration fee for battery-powered electric cars in Vietnam increased from March 2025?

Registration fee for battery-powered electric cars in Vietnam increased from March 2025?

Pursuant to Point c Clause 5 Article 8 of Decree 10/2022/ND-CP, which stipulates the registration fee for battery-powered electric cars, as follows:

registration fee Rate (%):

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

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c) Battery-powered electric cars:

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

- For the next 2 years: the initial registration fee is 50% of the rate applied to gasoline and diesel-powered cars with the same seating capacity.

d) The cars specified at points a, b, and c of this clause: the registration fee for the second and subsequent payments is 2% and is uniformly applied nationwide.

Based on the type of vehicle certified in the Vehicle Safety Quality and Environmental Protection Certificate issued by the Vietnamese registry authority, the tax authority determines the registration fee for cars, trailers, or semi-trailers towed by cars, and vehicles similar to cars as stipulated in this clause.

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Referring to the above-mentioned regulation and according to Clause 1 Article 14 of Decree 10/2022/ND-CP, which provides for the effective date of Decree 10/2022/ND-CP, as follows:

Implementation Clause

1. This Decree is effective from March 1, 2022.

2. From the effective date of this Decree:

a) The registration fee rate for passenger cars with up to 9 seats and the base price for houses, cars, and motorcycles continue to be implemented according to the current regulations of the provincial People's Councils, People's Committees, and the Ministry of Finance until new rates are issued.

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From these regulations, from March 2025 (specifically March 1, 2025), it marks the full 3 years since Decree 10/2022/ND-CP came into effect. Therefore, the initial registration fee for battery-powered electric cars will increase to 50% of the rate for gasoline and diesel-powered cars with the same seating capacity for the following 2 years.

Currently, the registration fee rate for passenger cars with up to 9 seats for first-time registration in Vietnam is commonly at 10%. This means that buyers of battery-powered electric cars with up to 9 seats from March 1 will have to pay a registration fee of approximately 5%.

Example: If a person buys a battery-powered electric car with up to 9 seats valued at 500 million VND, the initial registration fee they must pay is: 500 million × 5% = 25 million VND.

Registration fee for battery-powered electric cars in Vietnam increased from March 2025? (Image from the Internet)

Who are the payers of the registration fee for battery-powered electric cars in Vietnam?

According to Article 4 of Decree 10/2022/ND-CP, the payers of the registration fee for battery-powered electric cars are organizations and individuals owning such cars when registering ownership and usage rights with the competent state authority.

How to calculate the base price for battery-powered electric cars in Vietnam?

Pursuant to Clause 3 Article 7 of Decree 10/2022/ND-CP, the base price for battery-powered electric cars is the value stated in the Decision on the Taxable Price Table issued by the Ministry of Finance...Download

- The base price in the Table is determined based on principles ensuring compatibility with the asset transfer price in the market at the time of constructing the Table.

The asset transfer price on the market for each type of car or motorcycle (for cars and motorcycles, based on model; for trucks, based on country of manufacture, brand, and allowable transport load; for passenger vehicles, based on country of manufacture, brand, and seating capacity including the driver) is based on the databases according to Clause 2 Article 7 of **** Decree 10/2022/ND-CP.

- In case a new car type arises that is not yet listed in the Table at the time of submitting the registration fee declaration, the tax authority refers to the database under Clause 2 Article 7 **** Decree 10/2022/ND-CP to decide the base price for each new car or motorcycle (for cars and motorcycles, based on model; for trucks, based on country of manufacture, brand, and allowable transport load; for passenger vehicles, based on country of manufacture, brand, and seating capacity including the driver).

- In the event of a new car type not listed in the Table, or for cars and motorcycles listed in the Table but whose market transfer price has increased or decreased by 5% or more compared to the listed price, the Tax Department summarizes and reports to the Ministry of Finance by the 5th day of the last month of the quarter.