Methods of calculation and payment of road use fees in Vietnam 2023

Methods of calculation and payment of road use fees in Vietnam 2023 (Internet image)

Regarding this issue, LawNet responded as follows:

1. Methods of calculation and payment of road use fees in Vietnam 2023

The methods of calculating and paying the road use fee according to Article 6 of Circular 70/2021/TT-BTC is as follows:

- For the automobiles registered under organizations and individuals in Vietnam (except the vehicles of police and national defense forces as defined in Section 2 of Article 6 of Circular 70/2021/TT-BTC).

The road use fee shall be levied on an initially inspected vehicle from the date of issue of the certificate of registration.  The road use fee shall be levied on a vehicle converted or transferred from an organization to an individual (or vice versa) from the date of conversion or the date of change to ownership as shown in the vehicle’s new registration card.

The road use fee shall be levied per year, per month or at inspection intervals.   Registry agencies shall issue road use stamps that match the duration paid for. The process occurs in the following manner:

+ Calculation and payment of the fee at inspection intervals

++ For automobiles inspected at 1-year or shorter intervals: vehicle owners shall pay the road use fee for the duration of the entire inspection interval and receive a road use stamp that matches the duration paid for.

Example 1: Mr. A’s car is at a 6-month interval (from January 01, 2022 to June 30, 2022). On January 01, 2022, Mr. A has his car inspected and pays the road use fee to the registry agency.  The registry agency inspects the car, collects the road use fee and issues a 6-month road use stamp.

++ For automobiles inspected at intervals of more than 01 year (18, 24 and 30 months): vehicle owners shall pay the road use fee per year (12 months) or for the duration of the entire inspection interval (18, 24 and 30 months).

If the fee is paid for the duration of the inspection interval (18, 24 and 30 months), the registry agency shall issue a road use stamp commensurate with the inspection interval. At the end of the paid duration (inspection interval), the vehicle owner shall have his vehicle inspected and pay the fee for the following inspection interval.

If the fee is paid per year (12 months), registry agencies shall issue a road use stamp that match the paid duration of 12 months.  At the end of the paid duration (12 months), the vehicle owner shall pay the fee to the registry agency and receive a stamp (for the duration of another 12 months or the remaining length of the inspection interval).

Example 2: Mr. B’s car is inspected at a 30-month interval (from January 01, 2022 to June 30, 2024). On January 01, 2022, Mr. B has his car inspected. Mr. B is given the option to pay the fee for 01 year (12 months) or for the entire inspection interval (30 months).

If Mr. B pays the fee for the entire inspection interval, the validity of the road use stamp shall be 30 months.

If Mr. B pays the fee per year, the registry agency shall issue a road use stamp valid for 12 months.  At the end of 12 months on January 01, 2023, Mr. B has to pay the road use fee for another 12 months (or for the remaining 18 months of the inspection interval) and receives the road use stamp commensurate with the duration paid for (12 months or 18 months). 

If paying the fee for a duration of 12 months, Mr. B shall, on January 01, 2024, pay the fee for the remaining 06 months (from January 01, 2024 to June 30, 2024) and receive a 6-month road use stamp.  On July 01, 2024, Mr. B shall have his car inspected and pay the fee for the next interval.

++ If an owner has his vehicle inspected earlier or later than the deadline prescribed, the registry agency shall inspect the vehicle and determine the road use fee for a successive duration that spans from the end of the duration previously paid for to the end of the subsequent inspection interval (if the subsequent inspection interval exceeds 12 months, the vehicle owner may pay for the duration of up to 12 months or the entire inspection interval).

If the duration to be paid for does not constitute a full month, the fee amount payable shall be calculated by multiplying the result of the division of such deficient duration by 30 days with the fee rate for 01 month.

Example 3 on early inspection: Mr. C’s car with less than 10 seats is inspected at a 6-month interval from March 01, 2022 to August 31, 2022. Mr. C had his car inspected on March 01, 2016 and paid the fee for 06 months. The periodic deadline for Mr. C’s car inspection is August 31, 2022; however, Mr. C somehow has his car inspected on August 21, 2022 and pays the fee (10 days early).

The registry agency inspects the car and issues an inspection stamp for the subsequent 6-month interval from August 20, 2022 to February 19, 2023. As Mr. C paid the fee for a duration extending to August 31, 2022, the registry agency shall calculate and collect the road use fee for the duration from September 01, 2023 to February 20, 2023 (05 months 20 days) in the following manner:

The fee amount payable + 5 months x VND 130,000/month + (20/30) x VND 130,000/month + VND 736,670.

Example 4 on late inspection: the hypothetical situation resembles that of example 3 but Mr. C has his car inspected on September 15, 2022 (15 days late).

The registry agency inspects the car and issues an inspection stamp for the subsequent 6-month interval from September 15, 2022 to March 14, 2023. As Mr. C paid the fee for a duration extending to August 31, 2022, the registry agency shall calculate and collect the road use fee for the duration from September 01, 2022 to March 14, 2023 (06 months 15 days) in the following manner:

The fee amount payable + 6 months x VND 130,000/month + (15/30) x VND 130,000/month + VND 845,000.

++ If a vehicle owner owes the road use fee for previous inspection intervals prescribed, the vehicle owner shall not only pay the fee for the following interval but also incur the unpaid fee for previous intervals.

If the inspection interval commences before January 01, 2013, the fee shall be charged from the date of January 01, 2013. Registry agencies shall claim the fee amount due for previous intervals, which equal to the 1-month fee rate multiplied with the duration of deferred payment.

++ If a vehicle owner desires to pay the fee for a duration that exceeds the inspection interval, the registry agency shall collect the fee and issues a stamp commensurate with the duration paid for.

++ Regarding vehicles confiscated or seized by competent authorities; vehicles of administrative agencies, public sector entities; vehicles of national defense and public security forces to be liquidated; vehicles put up as collateral seized by a bank while the vehicles are seized and awaiting sale without inspection for operation on road.

After the vehicles are sold, the new owners are only required to pay the road use fees from the time when the vehicles are inspected for operation on road. Upon inspection for operation, the owner shall submit the following documents to the registry agency:

Decision on confiscation or seizure of the competent authority; decision on seizure of collateral; decision on approval for liquidation of assets of administrative agencies, public sector entities, national defense and public security forces; record or contract for completion of formalities for purchase of assets being liquidated or sold at auction.

In the event that the fee on the vehicle seized and sold has been paid after the re-inspection for operation, its owner shall pay the fee for a duration that succeeds the paid duration of the previous interval.

+ Fee payment per calendar year

Organizations and companies that desire to pay the fee per calendar year shall notify registry agencies in writing (for the first time or upon an increase or decrease in the quantity of vehicles) and pay the fee on their vehicles per calendar year.

Vehicle owners, on annual basis and before the 1st of January of the following year, shall pay the following year’s fee to registry agencies. Registry agencies, when collecting the fee, shall issue stamps for each vehicle for the duration paid for.

Example 7: Company A notifies the registry agency Y in writing of the former’s declaration and payment of the fee on its 10 vehicles for the calendar year of 2022; thus, Company A shall, before January 01, 2022, declare and pay the fee for the year of 2022 to the registry agency Y and receive the stamps for the 10 vehicles (each).

+ Fee payment on monthly basis

Companies that incur the fee of VND 30,000,000/ month or higher shall be allowed to pay the fee per month.  Companies and cooperatives shall thereof notify registry agencies in writing (for the first time or upon a change to the quantity of vehicles) and pay the fee on their vehicles per month.

Companies shall, on monthly basis and before the 01st of the successive month, pay the successive month's fee to the registry agencies (with which the monthly subscription is registered).  Registry agencies, when collecting the fee, shall issue stamps commensurate with the duration paid for.

Example 6: Company B has 50 cars and incurs a monthly fee of VND 30 million; thus, Company B is allowed to pay the fee on monthly basis. In order to pay the fee for September 2022, Company B shall, before September 01, 2022, notify the registry agency X in writing and pay the fee on its 50 vehicles.

Upon paying the fee, the owner of such vehicles shall receive the fee stamps for September 2022. Company B, on monthly basis and before the 01st of the following month, shall pay the fee on its vehicles.

- For the automobiles of national defense and police forces:

+ the fee shall be paid on annual basis at the rate defined in the fee schedule in Appendix I to Circular 70/2021/TT-BTC.

++ “National road fee” tickets are valid for the Ministry of National Defense’s vehicles carrying a red-painted number plate but invalid for those carrying other number plates (including the Ministry of National Defense’s vehicles not carrying a red-painted number plate). 

The content of a "national road fee” ticket valid for national defense vehicles specifies the place of issue (Directorate for Roads of Vietnam); vehicle type (military car and military truck) and plate number The length and width of a ticket is 12 cm x 8 cm. The background color of a ticket is red and the color of numerical and alphabetical characters is white.

++ The content of a "national road fee” ticket valid for the Ministry of Public Security’s vehicles specifies the place of issue (Directorate for Roads of Vietnam); either of two vehicle types (as defined in the fee schedule annexed to Circular 70/2021/TT-BTC) and plate number. The length and width of a ticket are 12 cm x 8 cm.

The background color of a ticket is yellow and the color of numerical and alphabetical characters is black. A vertical red line crosses over the ticket's left front at a position that is one-third of the distance from the left edge to the right.

++ Ministry of National Defense and Ministry of Public Security shall, on annual basis, make and send the estimate of the quantity and type of "national road fee” tickets in demand to Directorate for Roads of Vietnam.

++ The Ministry of National Defense, Ministry of Public Security shall request for issuance of “national road fee” tickets at the Directorate for Roads of Vietnam as follows:

When the time for ticket issuance comes, the applicant for ticket shall bring the letter of recommendation of the Ministry of National Defense or the Ministry of Public Security, which specifies:

Full name, position of the applicant for ticket; quantity and type of the ticket in need together with ID card/citizen identity card to the Directorate for Roads of Vietnam to enable the tickets to be issued.

Directorate for Roads of Vietnam shall issue the "national road fee” tickets with the quantity and type at request.  Based on the issued tickets, Directorate for Roads of Vietnam shall collect the road user fee as to automobiles of national defense and public security forces.

2. Road use fee receipt in Vietnam

Road use fee receipt in Vietnam according to Article 7 of Circular 70/2021/TT-BTC is as follows:

- Fee collectors shall issue fee receipts to payers when collecting the fee as per Circular No. 303/2016/TT-BTC dated November 15, 2016, guiding the printing, issuance, management and use of documents for the collection of charges and fees belonging to the state budget.

- The Directorate for Roads of Vietnam shall issue “national road fee” tickets to automobiles of national defense and public security forces upon issuance of the fee receipt as prescribed in clause 1 of Article 7 of Circular 70/2021/TT-BTC.

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