Are cars gifted from abroad eligible for import tax exemption in Vietnam?

Are cars gifted from abroad eligible for import tax exemption in Vietnam?

According to Clause 2, Article 16 of the Law on Import Tax and Export Tax 2016 stipulating personal belongings, gifts from foreign entities to Vietnamese entities and vice versa within the tax-free allowance:

If the quantity or value of personal belongings or gifts exceeds the tax-free allowance, the excess amount or value shall be taxed, unless the recipient is an entity funded by state budget and permitted by a competent authority to receive them or they are meant to serve humanitarian or charitable purposes.

In Article 5 of Decision 31/2015/QD-TTg stipulating tax-exempt allowance of gifts and donations as follows:

1. Gifts and donations that qualify for tax exemption as stipulated in this Article are those that fall outside of the list of goods subject to import and export ban and temporary suspension as well as the list of excisabe goods (exclusive of those serving the purpose of security and national defence) in accordance with laws.

2. Gifts and donations given by foreign organizations or individuals to Vietnamese individuals, and those given by Vietnamese organizations or individuals to foreign individuals that have the value of less than VND 2,000,000 (two million Vietnam dong), or more than VND 2,000,000 (two million Vietnam dong), but on which total amount of tax liability is less than VND 200,000 (two hundred thousand Vietnam dong), shall be exempted from export and import duty as well as value-added tax.

3. Gifts and donations given by foreign organizations or individuals to Vietnamese organizations, and those given by Vietnamese organizations or individuals to foreign organizations with the value of less than VND 30,000,000 (thirty million Vietnam dong) shall be entitled to export, import exemption consideration and exempted from value-added tax. As for gifts or donations exceeding the permitted amount of VND 30,000,000 (thirty million Vietnam dong), they shall be exempt from import duty, excise tax and VAT levied on all of their shipment under the following circumstances:

a) Consignee is permitted to receive such gifts and donations being public administrative agencies, socio-political organizations, political – social – professional organizations for use by competent authorities;

b) Goods are gifts or donations serving the charity and humanitarian purposes.

4. If gifts and donations stipulated in Clause 2, 3 of this Article fall within the list of excisable goods for the security and national defence purposes, they shall qualify for export, import duty and shall be exempt from excise value-added tax.

5. If gifts and donations are emergency medications, medical equipment given to persons with serious illnesses or those who suffer from disasters or accidents, and have the value of less than VND 10,000,000 (ten million Vietnam dong), they are exempt from all types of tax.

6. Tax exemption in accordance with Clause 3, 4 and 5 of this Article shall not apply if organizations or individuals frequently receive one or certain good(s).

According to this Article, your case is subject to tax exemption within the norm, but the value exceeding the tax-free limit will have to be taxed. For less than VND 2,000,000 (two million Vietnam dong), or more than VND 2,000,000 (two million Vietnam dong) but on which total amount of tax liability is less than VND 200,000 (two hundred thousand Vietnam dong), you still have to pay tax.

At which import border gate can used cars be received in Vietnam?

Pursuant to Clause 1, Article 3 of Circular 21/2021/TT-BCT stipulating provisions for import border gates as follows:

1. Passenger vehicles with less than 16 seats shall only be imported into Vietnam through seaports, including: Quang Ninh (Cai Lan), Hai Phong, Thanh Hoa (Nghi Son), Da Nang, Ho Chi Minh city, Ba Ria – Vung Tau.

Thus, you can receive cars that your relatives send at the border gate near you, according to your situation in Vinh, you can receive them at Nghi Son border gate (Thanh Hoa, Vietnam).

Best Regards!