Import and export tax is an important financial tool, both generating revenue for the state budget and regulating international trade activities. Understanding how to calculate import and export tax not only helps businesses comply with legal regulations but also optimizes costs and minimizes risks in tax declaration and payment.
The article below will provide detailed instructions on the calculation formula, how to determine customs value, as well as taxes related to import and export such as VAT, special consumption tax and environmental protection.
Concept and legal basis for calculating import and export tax
What is import tax? This is an indirect tax regulated by the State, levied on goods when exported out of or imported into Vietnam.
Regulating legal documents include:
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Law on Export Tax and Import Tax No. 107/2016/QH13
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Circular 39/2015/TT-BTC on customs tax value
The import tax price is the CIF price – including the price of goods, insurance and transportation costs to the first import port in Vietnam.
The export tax calculation price is the FOB price – the price of goods at the export gate, excluding international shipping and insurance fees.
In addition to export and import taxes, other taxes may also arise such as value added tax (VAT), special consumption tax (SCT) and environmental protection tax (EPT) depending on the item.
Formula for calculating import tax and accompanying taxes
Formula for calculating import tax (CIF)
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Import tax = Taxable price (CIF) × Import tax rate |
How to calculate VAT on imported goods
| VAT = (CIF + Import tax + Special consumption tax) × VAT rate |
VAT is only applicable when imported goods are taxable under the VAT Law. In practice, most imported goods are subject to VAT.
Special Consumption Tax and Environmental Protection Tax (if any)
Some goods such as alcohol, tobacco, cars, gasoline, etc. are also subject to special consumption tax and environmental protection tax. These taxes are also added to the VAT value, so they need to be calculated accurately to avoid under-declaration.
Example:
A business imports a laptop with a CIF price of 20 million VND, import tax of 5%, VAT of 10%.
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Import tax = 20,000,000 × 5% = 1,000,000
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VAT = (20,000,000 + 1,000,000) × 10% = 2,100,000
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Total tax payable: 3,100,000 VND
Formula for calculating export tax based on FOB price
| Export tax calculation formula = FOB price × Export tax rate |
If the item is subject to absolute tax, the formula will be: Tax = Quantity of goods × Absolute tax rate/unit
Export tax rates are specified in the current Export Tax Schedule, classified by HS code and specific item.
For example: Enterprise exporting white rice, FOB price 25 million VND/ton, tax rate 5%
Export tax = 25,000,000 × 5% = 1,250,000 VND/ton
Real life example of how to calculate import tax
| Case | Input information | Detailed calculation | Total tax payable |
|---|---|---|---|
| 1. Importing cars with less than 9 seats | CIF price: 500 million Import tax: 70% Special consumption tax: 50%VAT: 10% | – Import tax = 500 × 70% = 350 million- Special tax = (500 + 350) × 50% = 425 million- VAT = (500 + 350 + 425) × 10% = 127.5 million | 902.5 million VND |
| 2. Iron ore export | FOB price: 30 million VND/tonTax rate: 40% | – Export tax = 30,000,000 × 40% = 12,000,000 VND/ton | 12 million VND/ton |
Notes when calculating taxes and processing declaration documents
During the process of declaring import and export taxes, businesses need to pay special attention to accurately determining the HS code for each item. Applying the wrong code not only leads to incorrect tax rates but can also result in tax arrears, late payment penalties, or even administrative sanctions according to customs law.
Another important issue is to present a valid C/O (certificate of origin). Without this document, goods will not enjoy preferential tax rates under the free trade agreements that Vietnam participates in, such as EVFTA, CPTPP or ATIGA. This can significantly increase tax costs for businesses.
In addition, all documents related to import-export transactions – including commercial invoices, bills of lading, foreign trade contracts and payment documents – must be fully and properly stored. This is a mandatory basis to prove the legality of the transaction in case of post-clearance inspection by customs authorities.
Conclusion: Proactive tax calculation – Minimize risks, optimize costs
Understanding how to calculate import and export taxes, including taxable prices (FOB/CIF), tax formulas, tax rates and types of taxes incurred, is a prerequisite for businesses to operate legally and effectively.
Instead of struggling to process data and declaration documents, businesses should coordinate with specialized units to review tax schedules, standardize documents and provide policy advice. You can contact Master Accountant Network (MAN) to be accompanied in all auditing and import-export activities.
