What types of taxes are applicable to foreign goods imported into Vietnam? What are the tax rates for foreign goods imported into Vietnam?

What taxes must foreign goods imported into Vietnam be subject to?

Pursuant to the provisions of Article 2 of the Law on Export and Import Duties 2016, the following is stipulated:

Taxable Subjects

1. Goods exported and imported through Vietnamese border gates and borders.

2. Goods exported from the domestic market into non-tariff zones and goods imported from non-tariff zones into the domestic market.

3. On-the-spot exports and imports and the exports and imports of enterprises conducting export, import, and distribution rights.

4. The subjects of export and import duties do not apply to the following cases:

a) Goods in transit, transshipment, and temporary import for re-export;

b) Humanitarian and non-refundable aid goods;

c) Goods exported from non-tariff zones to foreign countries; goods imported from foreign countries into non-tariff zones and used only within non-tariff zones; goods transferred from one non-tariff zone to another non-tariff zone;

d) Crude oil used to pay resource tax to the State when exported.

5. The Government of Vietnam provides detailed regulations on this Article.

And pursuant to the provisions of Article 3 of the Law on Value Added Tax 2008, the following is stipulated:

Taxable Subjects

Goods and services used for production, business, and consumption in Vietnam are subject to value added tax, except for subjects specified in Article 5 of this Law.

In addition, pursuant to Article 2 of the Law on Special Consumption Tax 2008, the following is stipulated:

Taxable Subjects

1. Goods:

a) Cigarettes, cigars, and other preparations made from cigar plants for smoking, inhaling, chewing, sniffing, and sucking;

b) Alcohol;

c) Beer;

d) Automobiles with fewer than 24 seats, including ones designed to carry both people and cargo with a fixed partition between the passenger compartment and the cargo compartment;

đ) Motorbikes with a cylinder capacity of over 125cm3;

e) Aircraft, yachts;

g) Gasoline of all kinds, naphtha, reformade components, and other preparations used for mixing gasoline;

h) Air conditioners with a capacity of 90,000 BTU or less;

i) Playing cards;

k) Votive paper, votive items.

2. Services:

a) Ballroom business;

b) Massage and karaoke services;

c) Casino business; prize-winning electronic games including games played with jackpot machines, slot machines and similar machines;

d) Betting business;

đ) Golf business including selling membership cards and golf playing tickets;

e) Lottery business.

Thus, under the regulations, foreign goods imported into Vietnam are subject to the following taxes: import duty, value added tax, special consumption tax,...

What taxes must foreign goods imported into Vietnam be subject to? How are tax rates for foreign goods imported into Vietnam regulated? (Image from Internet)

How are tax rates for foreign goods imported into Vietnam regulated?

Pursuant to Article 5 of the Law on Export and Import Duties 2016, it is stipulated as follows:

Tax rates for imported goods include preferential tax rates, special preferential tax rates, and ordinary tax rates, and are applied as follows:

- Preferential tax rates apply to imported goods originating from countries, groups of countries, or territories that grant most-favored-nation treatment in trade relations with Vietnam; goods from non-tariff zones imported into the domestic market meeting the origin conditions from countries, groups of countries, or territories that grant most-favored-nation treatment in trade relations with Vietnam.

- Special preferential tax rates apply to imported goods originating from countries, groups of countries, or territories that have special preferential agreements on import duty in trade relations with Vietnam; goods from non-tariff zones imported into the domestic market meeting the origin conditions from countries, groups of countries, or territories that have special preferential agreements on import duty in trade relations with Vietnam.

- Ordinary tax rates apply to imported goods not belonging to the cases stipulated at points a and b of this section. The ordinary tax rate is set at 150% of the preferential tax rate for each corresponding item. In cases where the preferential tax rate is 0%, the Prime Minister of the Government of Vietnam, based on the provisions of Article 10 of this Law, decides the application of the ordinary tax rate.

What are the principles of promulgating tax rates, export, and import tariffs?

Pursuant to Article 10 of the Law on Export and Import Duties 2016, it is stipulated as follows:

- Encourage the importation of raw materials, prioritize types that domestic production does not meet demand; focus on developing high-tech industries, source technology, energy saving, and environmental protection.

- Comply with the socio-economic development orientations of the State and the commitments on export and import duties in international treaties to which the Socialist Republic of Vietnam is a member.

- Contribute to stabilizing the market and the State budget revenue.

- Be simple, transparent, facilitate taxpayers, and implement tax administrative procedure reforms.

- Apply a unified tax rate to goods with similar nature, composition, use, or function; import duty rates decrease from finished products to raw materials; export duty rates increase from finished products to raw materials.