Which types of automobiles are exempt trom excise tax in Vietnam?

Which types of automobiles are exempt trom excise tax in Vietnam?

According to Clause 1, Article 2 of the Law on excise tax 2008 (amended by Clause 1, Article 1 of the Amended Law on excise tax 2014), goods subject to excise tax include:

Taxable Goods

1. Goods:

a) Cigarettes, cigars, and other tobacco products for smoking, inhaling, chewing, sniffing, or sucking;

b) Alcohol;

c) Beer;

d) Automobiles under 24 seats, including dual-purpose vehicles for both passenger and cargo transport with at least two rows of seats, and designed with a fixed partition between the passenger compartment and the cargo compartment;

e) Motorbikes with over 125 cm3 engine capacity;

f) Aircraft, yachts;

g) All types of gasoline;

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

i) Playing cards;

k) Votive paper and similar items.

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According to the above regulations, automobiles fall under the category subject to excise tax. However, pursuant to Clause 4, Article 3 of the Law on excise tax 2008, goods not subject to excise tax include the following cases:

Non-taxable Goods

The goods prescribed in Clause 1, Article 2 of this Law are not subject to excise tax in the following cases:

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4. Ambulances; vehicles transporting prisoners; hearses; vehicles designed with both seating and standing positions for 24 or more persons; vehicles operating in recreation, entertainment, and sports areas not registered for regular road traffic;

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Thus, there are 05 types of automobiles exempt from excise tax, including:

(i) Ambulances;

(ii) Vehicles transporting prisoners; hearses;

(iii) Vehicles designed with both seating and standing positions for 24 or more persons;

(iv) Vehicles operating in recreation, entertainment, and sports areas not registered for regular road traffic.

Which types of automobiles are exempt from excise tax in Vietnam? (Image from the Internet)

What is the excise tax rate for automobiles under 24 seats in Vietnam?

The excise tax rate for automobiles under 24 seats is specified in Clause 4, Section I of the excise tax Tariff prescribed in Article 7 of the Law on excise tax 2008 (amended by Clause 4, Article 1 of the Amended Law on excise tax 2014, Clause 2, Article 2 of the Amended Law on Value-added Tax, excise tax, and Tax Administration 2016 and Article 8 of the Amended Law on Public Investment, Public-Private Partnership Investment, Investment, Housing, Bidding, Electricity, Enterprises, excise tax, and Civil Judgment Enforcement 2022), as follows:

How to determine tax base for imported automobiles under 24 seats in Vietnam?

The tax base for excise tax on imported automobiles under 24 seats is determined according to Clause 2, Article 6 of the Law on excise tax 2008 (amended by Clause 3, Article 1 of the Amended Law on excise tax 2014, Clause 1, Article 2 of the Amended Law on Value-added Tax, excise tax, and Tax Administration 2016 and the content provisions on exchange rates in determining the tax base as annulled by Point d, Clause 2, Article 6 of the Amended Law on excise tax 2014) as follows:

- The tax base for excise tax on imported automobiles at the import stage is the import duty-paid price plus import duty.

- In case imported goods are exempt from or reduced from import duty, the tax base does not include the exempted or reduced import duty amount.

- Imported goods subject to excise tax can deduct the excise tax amount paid at the import stage when determining the tax amount payable at the sale stage.