Export tax

What is export tax, how is it applied and how does it affect international trade activities? In the context of Vietnam's strong growth in export turnover, understanding tax policies, calculation methods and looking up export tax schedules not only helps businesses save costs but also avoid legal risks during post-clearance inspections.

Overview of export tax

What is export tax?

Export tax is a mandatory financial obligation that the State collects on goods taken out of Vietnam for consumption abroad. According to the provisions of the Law on Export Tax and Import Tax No. 107/2016/QH13, this is a form of indirect tax, calculated on the value of goods and paid by the exporter on behalf of the foreign consumer.

Not all exported goods are subject to tax. Current tax policies only apply to certain groups of special goods that affect national resources or economic security policies, typically: mineral resources, metal ores, unprocessed wood products, rice, etc.

The application of export tax is not only to generate revenue for the state budget, but also a tool to regulate trade activities, protect domestic resources and control the sale of raw resources to international markets.

Legal basis for export tax

Current export tax policy is regulated by the following main legal documents:

• Law No. 107/2016/QH13 – Law on Import and Export Tax (current)

• Decree 134/2016/ND-CP, amended by Decree 18/2021/ND-CP – Guidance on law implementation

• Circular 39/2018/TT-BTC – Regulations on customs value for calculating export tax

• International agreements and FTAs have specific provisions on tax exemptions or incentives.

Businesses need to monitor and update documents periodically because tax schedules and scope of application may change each year according to adjustments from the Government.

Current export taxes

Based on the method of determining the tax rate, export tax is divided into two forms:

• Percentage tax rate (%): Most common, applied to most exported goods. For example: rice, cashew nuts, rubber…

• Absolute tax: Taxed at a specific rate per unit (kg, ton, liter, etc.). Applied to some special items such as raw gold and gasoline.

In some cases, exported goods are also subject to additional taxes such as special consumption tax (SCT) or output VAT 0%, depending on the type and purpose of export.

Export tax rates and classification

The tax rates applicable to exported goods are specified in detail in the current Export Tariff, issued with the Government's Decrees. The tax rates are not fixed but depend on each type of goods, determined through the HS code (International Commodity Coding System).

Basically, export tax rates are divided into two main groups:

In practice, most of Vietnam's export goods, especially industrial goods, textiles, and processed agricultural products, currently enjoy a tax rate of 0%. However, for groups of natural resources, minerals, and unprocessed wood, the tax rate can be up to 30 - 45%, in order to limit raw exports and protect domestic resources.

Determining the correct tax rate depends directly on the HS code and origin of the goods. Therefore, businesses need to pay close attention when declaring and submitting customs documents to avoid the risk of being charged the wrong tax rate or being charged additional tax after customs clearance.

How to calculate export tax

The method of calculating export tax is clearly stipulated in Article 6 of the Law on Export Tax and Import Tax No. 107/2016/QH13. Accordingly, the amount of tax payable is determined based on the FOB taxable price and the applicable tax rate, according to the formula:

Export tax payable = Taxable price (FOB) × Export tax rate

Explain the constituent elements:

• FOB (Free on Board) price is the value of goods at the export port, excluding insurance and international transportation costs. This is the common price used in international trade contracts.

• Export tax rates are determined according to the current tax schedule, based on the HS code of each specific type of goods.

Note: For special cases such as goods subject to absolute tax rates (applying specific tax rates per unit of volume), the calculation method will follow a separate method, specified in the corresponding tax schedule appendices. If you are not sure how to determine the tax rate for each shipment, you can ask for help. MAN's in-depth audit services for the most accurate and cost-effective advice.

Example of export tax

To clarify how export tax is calculated in practice, the following two specific situations can be considered:

Case 1: Enterprise exporting white rice to the Philippines

• FOB price: 25,000,000 VND/ton

• Export tax rate: 5%

Calculation:

Export tax payable = 25,000,000 × 5% = 1,250,000 VND/ton

Case 2: Iron ore exporting enterprise

• FOB price: 30,000,000 VND/ton

• Export tax rate: 40%

Calculation:

Export tax payable = 30,000,000 × 40% = 12,000,000 VND/ton

The above examples show that tax rates can account for a significant proportion of total export value, especially for natural resources, minerals or items subject to strict export management. This requires businesses to proactively calculate, review tax schedules and balance costs right from the export planning stage.

Determining the correct tax rate, HS code and accompanying documents not only helps businesses optimize tax obligations, but also limits the risk of being charged or fined when customs authorities conduct post-clearance inspections.

Latest export tax schedule 2025

According to the update from the current tax policy, the 2025 export tax schedule continues to maintain the tax rate classification for each group of goods, based on the specific HS code. Some typical items are listed as follows:

The export tariff is issued with the appendix of the Government Decrees and may change from time to time to suit the trade management policy, resources and international obligations.

Businesses can look up the official tax schedule on the website of General Department of Customs or use the VNACCS/VCIS declaration system to quickly check by HS code. Determining the correct tax schedule and applying the appropriate tax rate is a prerequisite to ensure complete and valid customs documents and avoid legal risks during customs clearance.

Instructions for checking export tax properly

To look up the exact export tax schedule, businesses need to perform 3 steps:

1. Determine the exact HS code of the goods

2. Compare with export tax schedule according to current Decree

3. Check special conditions if there is FTA (tax incentives)

Popular search tools:

• Website of General Department of Customs

• VNACCS/VCIS declaration system

• Advice from professional units such as MAN Auditing Services If the business is unsure about the HS code or applicable policy

Note for export businesses

Enterprises need to be especially careful in declaring HS codes; if they are wrongly identified, it will lead to incorrect tax imposition, and the risk of being charged and fined is very high. In case of failure to provide valid certificates of origin (C/O), enterprises will not enjoy preferential tax rates under free trade agreements. In addition, keeping full invoices, bills of lading, export contracts and payment documents is a mandatory condition to meet the requirements of post-clearance inspection and examination by customs authorities.

Conclude

Export tax is a mandatory financial obligation collected by the State for goods leaving Vietnam. Understanding the nature, calculation method and regulations related to export tax is a prerequisite for businesses to ensure legal operations, good cost control and prevention of legal risks.

From determining HS codes, looking up tax schedules, calculating tax obligations to preparing documents, every step requires accuracy and strict compliance. If your business still has problems with tax rates, classifying goods or preparing declarations, please contact us. MAN Auditing Services for expert advice and comprehensive support throughout the export process.