Import tax

What is import tax and why do businesses need to pay special attention when participating in international trade activities? In the context of Vietnam's deep integration with dozens of free trade agreements (FTAs), import tax is not only a mandatory financial obligation but also a decisive factor in the cost of goods, product prices and competitiveness of businesses. From calculation, tax schedule, tax calculation price to accounting method - each step requires accuracy, updating and understanding of current legal regulations.

Overview of import taxes

What is import tax?

Import tax is an indirect tax applied to goods originating from foreign countries when imported into Vietnam. This is one of the important financial tools to regulate international trade activities, protect domestic production and generate revenue for the state budget.

Legal basis for adjusting import tax

Current import tax regulations are stated at:

• Law on export tax and import tax No. 107/2016/QH13

• Decree 134/2016/ND-CP (amended and supplemented by Decree 18/2021/ND-CP)

• Guiding Circulars of the Ministry of Finance, especially Circular 39/2015/TT-BTC on determining customs value

This is the legal basis for businesses to look up, apply tax schedules and determine their tax obligations when carrying out customs procedures.

Import tax rates and classification

Currently, import tax in Vietnam is applied according to three main tax rate groups, depending on the trade relationship between Vietnam and the country of origin of the goods. Each tax rate comes with different conditions of application, especially in the context of Vietnam having signed many free trade agreements. Below is a detailed classification table:

Tax rate type	Applicable objects	Tax rate (estimated)	Terms and Conditions
MFN (most favored nation) tax rate	Goods originating from countries that have normal trade relations with Vietnam	According to MFN tariff schedule (usually 0% – 70%)	No need for preferential C/O, just need to prove origin
Special preferential tax rates	Goods originating from countries/regions that have FTAs with Vietnam (EVFTA, CPTPP, ATIGA...)	Lower than MFN, many items reduced to 0%	A valid C/O is required according to the FTA's prescribed form.
Normal tax rate	Goods not falling into the above two cases	Higher than MFN 50%	Default applies if there is no basis for determining MFN/FTA

Applying the correct tax rate is a key factor in determining the correct tax costs, avoiding legal risks and making the most of incentives from FTAs. Enterprises need to proactively check HS codes, look up updated tax schedules and prepare the correct C/O if they want to enjoy special preferential tax rates. In case of lack of information or unclear origin, goods will be subject to the normal tax rate - the highest tax rate and least beneficial to importers.

What is the import tax price?

According to Article 86 of the Law on Tax Administration and Circular 39/2015/TT-BTC, the price for calculating import tax is the customs value of imported goods. Specifically, this is the CIF price - including:

• Purchase price of goods at the first import gate (actual price paid)

• Insurance and international shipping costs to Vietnam border gates

In other words, the import tax price fully reflects the total cost of bringing goods from the exporting country to the Vietnamese border gate, but does not include subsequent costs such as:

• Domestic shipping costs in the exporting country

• Foreign taxes (if any)

• Trade discounts, post-purchase discounts

• Cost of storage and unloading at Vietnamese ports after goods arrive at the port

Determining the correct taxable price is a mandatory step to calculate the amount of import tax payable and is one of the key factors when customs authorities conduct post-clearance inspections.

How to calculate import tax

Import tax is calculated based on the taxable value (CIF) and the import tax rate applied according to the HS code and corresponding tariff schedule. The basic calculation formula is as follows:

Import tax = Taxable price × Import tax rate

However, that is not all the tax obligations that businesses must fulfill. Besides import tax, some other types of taxes may also arise, the most common of which are value added tax (VAT) and special consumption tax (if any).

• Import VAT is calculated on the total value of goods plus import tax.

• Special consumption tax (SCT) is only applied to special items such as alcohol, beer, cigarettes, cars with less than 24 seats... according to the provisions of the SCT Law.

Example:

A company imports a batch of laptops, the CIF value is 20 million VND. The import tax is 5% and the VAT is 10%.

• Import tax = 20 million × 5% = 1 million VND

• VAT value = 20 million + 1 million = 21 million

• Import VAT = 21 million × 10% = 2.1 million VND

Total tax payable is: 1 million (import tax) + 2.1 million (VAT) = 3.1 million VND

From the above example, it can be seen that if the accompanying taxes are not carefully calculated, businesses can easily misestimate actual import costs, thereby affecting cost of goods sold and profit plans.

Import tariff schedule 2025

The 2025 import tariff continues to be classified into two basic levels: MFN (most-favored nation) tax rates and special preferential tax rates according to free trade agreements (FTAs). The specific tax rates depend on the HS code and origin of each item. The table below illustrates some common groups of goods:

Determining the correct Harmonized System Code (HS Code) is a prerequisite for applying the correct import tax rate. Any small deviation in the HS code can lead to tax rate differences, additional collection or administrative penalties.

Businesses can look up the latest updated tax schedule via:

• Portal of General Department of Customs

• VNACCS/VCIS declaration system

• Or consult support from professional units such as MAN Auditing Services

Import tax account – how to pay and manage?

According to regulations, enterprises must pay import tax through:

• State budget revenue account opened at the Treasury

• Or via the electronic customs payment portal (E-portal)

All duties and taxes incurred must be paid prior to or upon customs clearance. Late payment may result in late penalties and suspension of import operations.

Accounting for import tax in business accounting

Business	Debit Account	Account Yes	Note
Import tax recording	156 (or 611)	3333	Included in the cost of imported goods, not deductible.
Record import VAT	1331	33312	VAT is deductible if goods used for taxable production and business
Pay taxes to customs	3333, 33312	111 (or 112)	Documents submitted to the State budget must be kept in full for comparison.

Example:

An imported shipment has import tax of 50 million, import VAT of 55 million:

Tax recording:

• Debt 156: 50,000,000
• Debt 1331: 55,000,000
• There are 3333: 50,000,000
• There are 33312: 55,000,000

When paying taxes:

• Debit 3333, 33312 / Credit 111 (cash payment) or 112 (bank transfer)

Remember: Accurate accounting not only ensures transparency in books, but is also an important basis for future audits, tax settlements and tax refunds.

Important Note for Business

• Always check HS codes carefully, prioritize using consulting services if the code is unclear

• Check C/O before applying FTA incentives

• Periodically reconcile import tax data between accounting and customs

Conclusion and recommendations

Understanding the regulations, calculation and accounting of import tax helps businesses save costs, avoid errors and ensure compliance with customs laws. Especially in the context of constantly changing tax schedules according to FTAs, proactive tax operations are a key factor to maintain competitiveness in the international market.

If you are having difficulty determining tax rates, looking up HS codes or processing tax refund applications, please contact us. MAN Auditing Services for in-depth support and companionship throughout the entire import-export process.