Currently, the Vietnamese government is tightening the import of small-scale goods and promoting the import of official quota goods. Therefore, importing official quota goods will become increasingly simple and easy. And when importing official quota goods, what types of taxes will be incurred? How do we calculate to both limit tax costs and comply with state regulations? Let's find out together.
Import tax is a type of tax imposed by a country or territory on goods originating from abroad during the import process.
Import tax will be reduced or not incurred if the importing company has the correct CO according to state regulations.
How to calculate import tax: There are 3 ways to calculate import tax, but I will only provide the most commonly used and easiest-to-understand method:
If importing under CIF conditions
Import tax = Taxable value x Import tax rate (%)
Where: Taxable value = Quantity of imports x CIF price = Total value of the shipment under CIF conditions
If importing under FOB conditions
Taxable value = Quantity of imports x (FOB price + International transportation fee per unit of goods + International insurance fee per unit of goods)
- Import tax will be reduced or not incurred if the importing company has the correct CO according to state regulations. Please contact 090 262 0898 - Mr. Long for guidance.
A special consumption tax is an excise tax imposed on certain types of goods and services with luxurious characteristics to regulate social production, import, and consumption.
How to calculate special consumption tax:
Special consumption tax = (Taxable value + Import tax + Additional import tax) x Special consumption tax rate (%)
Where: Additional import tax can be anti-dumping tax, countervailing duty, or safeguard duty.
Is an additional import tax applied in cases where goods imported into Vietnam are dumped or threaten to cause significant damage to domestic production or prevent the formation of domestic production?
How to calculate anti-dumping tax:
Anti-dumping tax = Actual quantity of each imported item stated in the customs declaration x Taxable price x Anti-dumping tax rate (%)
Is an additional import tax applied in cases where subsidized goods are imported into Vietnam causing or threatening to cause significant damage to domestic production or prevent the formation of domestic production.
How to calculate countervailing duty:
Anti-subsidy tax = Quantity of each actual imported item stated in the customs declaration subject to anti-subsidy tax x Taxable price x Anti-subsidy tax rate (%)
It is an additional import tax applied in cases of excessive imports into Vietnam causing serious damage or threatening to cause serious damage to domestic production sectors or hindering the formation of domestic production sectors.
Calculation of safeguard tax:
Safeguard tax = Quantity of each actual imported item stated in the customs declaration subject to safeguard tax x Taxable price x Safeguard tax rate (%)
Environmental protection tax is an excise tax levied on products, and goods when their use hurts the environment.
Calculation of environmental protection tax:
Environmental protection tax = Taxable quantity of goods x Absolute tax rate per unit of goods
Value-added tax is a tax calculated on the added value of goods, and services generated in the process from production, circulation to consumption.
Calculation of value-added tax:
Value added tax = (Taxable value + Import tax + Special consumption tax + Environmental protection tax + Additional import tax) x Value added tax rate (%)
Not all types of taxes are always applicable, depending on the type of product there will be corresponding taxes.
And each type of tax may be further reduced or not incurred if you research carefully.
For example: importing agricultural and aquatic products, then:
- Value added tax (VAT) is 0%
- Import tax depending on the appropriate CO will be reduced, or to 0%
- Other taxes will not be incurred (environmental protection tax, special consumption tax, ...)
Customs clearance services of Sea Dragon will support customers with import official quota procedures: consulting to reduce taxes, customs declaration, C/O declaration, register import license application, ... to ensure quick and accurate importation of goods. Avoid incurring additional costs. Learn more at the link
Or contact Mr Long 0902 620 898 or jack@seadragonlogistics.com for further advice!
Source: Sea Dragon International Logistics CO.,LTD
