Vietnam Duties and Taxes
Customs payments are assessed ad valorem where possible. If ad valorem calculation is not applicable, as when the buyer and seller are related, specific or combined rates are used.
The following charges are levied in addition to duties and taxes:
- Fees for customs clearance
- Fees for customs escort
- Fees for storage of goods
An antidumping duty on imports is imposed when the relevant investigations reveal that:
- Imports took place at dumping prices
- Vietnamese manufacturers of similar goods incur loss or are at risk of incurring such loss, or that the development of the relevant sector in Vietnam can be considerably delayed by the import
- Imposition of the duty is found to be in national interest
Value-Added Tax (VAT)
Value-Added Tax (VAT) applies to most imported goods as of the time they are declared to customs. Selected items are charged at a reduced rate, half the standard rate. Goods exempted from Value-Added Tax (VAT) duty vary according to the needs of the Vietnamese economy. As of 2022, the standard VAT in Vietnam is 10 percent.
Excise duties are levied on the producer, importer, and seller of excise goods; entities providing manufacturing services for the excised goods; as well as other entities specified by law.
Excise tax is calculated in one of three ways, depending on the type of goods:
- As a percentage of the value of goods by volume
- As a percentage of the maximum retail price
- On a fixed rate per unit percentage of the maximum retail price
An additional fee is charged on some commodities to cover the expense of conducting examinations and/or testing that is mandatory for the goods’ entry into Vietnam. Commodities affected include cosmetics, drugs, medicines, and artwork.
Countervailing duties are levied to counter the effects of subsidies provided by a foreign government for merchandise exported to Vietnam. These foreign duties result in artificially low prices that can be detrimental to Vietnamese goods.
Note: The above information is subject to change. Importers are advised to obtain the most current information from a customs broker, freight forwarder, or the local customs authorities.
Article written for World Trade Press by Taylor Holloran, Jennifer Goheen, and Nina Bellucci.
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