Vietnam: Guidelines for applying prices to calculate registration fees for automobiles and motorbikes

According to these documents, recently, many tax departments have sent documents stating some problems when implementing this circular, thus, in order to resolve arising problems, the General Department of Taxation guides the entire Tax sector to understand and agree on how to handle them.

The document citing Article 6 of Circular No. 304/2016/TT-BTC of the Ministry of Finance of Vietnam: The prices for automobiles and motorbikes  on which registration fees are imposed are specified on the Price list enclosed with this Circular. If the market price for an automobile or motorbike is lower than that on the Price list, then the latter shall apply.

When the declaration of registration fee has been fully submitted, if the market price of an automobile/motorbike increases by 20% in comparison with the applicable Price list or such vehicle is not specified on the Price list, then the Tax authority shall, depending on the prices for automobiles and motorbikes on which registration fees are imposed on the Price list, determine the prices on which registration fees are imposed as regulated.

If the involving automobile/motorbike is not included on the Price list issued by the Ministry of Finance, Provincial Departments of Taxation shall notify the prices on which registration fees are imposed to Sub-departments of Taxation for consistent application in its provinces.

Based on the above guidelines, the prices for automobiles and motorbikes  on which registration fees are imposed are specified in the price list attached to Circular No. 304/2016/TT-BTC. In case the actual transfer price of automobiles and motorbikes on the market increases, but is less than 20% compared to the registration fee price issued by the Ministry of Finance, the registration fee calculation price is the price according to the price list issued by the Ministry of Finance.

In case the market price increases by 20% or more, the tax department will apply the registration fee calculation price of the types of cars and motorbikes already on the price list to determine the registration fee calculation price.

Source: Online Vietnam Financial Times

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