Import tax on used cars in Vietnam

Import tax on used cars in Vietnam

According to Decree 26/2023/NĐ-CP, the import tax regulations for used cars in Vietnam are as follows:

- Used passenger cars of 09 seats or less with a cylinder capacity of not more than 1,000cc in commodity group 87.03, the absolute tax rate specified in Appendix III shall apply promulgated together with Decree 26/2023/NĐ-CP.

- Used passenger cars with 09 seats or less with a cylinder capacity of more than 1,000cc of commodity group 87.03 and from 10 to 15 seats in commodity group 87.02 apply the mixed tax rate specified in Appendix III issued together with Decree 26/2023/NĐ-CP.

- Used passenger cars with 16 seats or more in commodity group 87.02 and used motor vehicles used to carry goods with a total designed mass not exceeding 05 tons, of heading 87.04 (except for refrigerated cars, waste-collecting cars with waste compactors, tank trucks, and armored cars for transporting valuable goods; tank-type cement trucks and mud trucks with removable tanks) are subject to a preferential import tax rate of 150%.

- Other types of used cars in commodity groups 87.02, 87.03, and 87.04 are subject to the tax rate, which is equal to 1.5 times the preferential import tax rate of unused cars of the same category in the same commodity group specified in Section I, Appendix II issued together with Decree 26/2023/NĐ-CP.

Preferential import tax rates for mechanical processing machines in Vietnam

Mechanical processing machines in groups from 84.54 to 84.63 are subject to preferential import tax rates as follows:

- Products of mechanical processing machines that have not yet been produced in the country are eligible for the preferential import tax rate of 0%. The mechanical processing machines mentioned in this Clause are not on the list of domestically manufactured machinery and equipment prescribed by the Ministry of Planning and Investment.

- Goods of mechanical processing machines that do not fall into the cases specified in Clause 1 of this Article shall be subject to the preferential import tax rates of groups from 84.54 to 84.63 specified in Section I, Appendix II on the Preferential Import Tariff according to the List of Taxable goods promulgated together with Decree 26/2023/NĐ-CP.

Decree 26/2023/NĐ-CP takes effect from July 15, 2023.

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