Import and export taxes are not only an important source of revenue for the state budget, but also play a role in regulating international trade activities and protecting domestic production. In the context of Vietnam participating in more and more free trade agreements (FTAs), understanding what import and export taxes are, their purpose, how to calculate them, as well as updating import and export tax schedules and current legal regulations is a mandatory requirement for all import and export enterprises. The following article will provide comprehensive legal and practical knowledge about import and export taxes in 2025.
Overview of import and export taxes
What is import tax?
According to the provisions of the Law on Export and Import Taxes No. 107/2016/QH13, export and import tax is an indirect tax collected by the State on goods permitted to be exported or imported across Vietnam's borders. This is a revenue with a dual purpose: serving both fiscal interests (increasing budget revenue) and being an effective tool for international trade management.
Export tax applies to goods leaving Vietnam; conversely, import tax applies when goods from abroad enter Vietnam for consumption or use.
Purpose of import tax
Import and export tax is not simply a budget payment. In essence, it has many policy implications:
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Regulating international trade: Through adjusting tax rates, the State controls the amount of goods entering and leaving the country.
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Protect domestic production: Apply high import taxes on directly competitive products to create advantages for domestic enterprises.
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Implementing foreign policy: Linked with tariff commitments in FTAs, such as ATIGA, CPTPP, EVFTA...
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Creating sustainable revenue for the budget: In 2024, import-export taxes will account for nearly 141.3 billion VND of total state budget revenue according to data from the General Department of Customs.
Legal basis of import and export tax
The mechanism for collecting and managing import and export taxes is regulated by a strict system of legal documents, including:
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Law on Export Tax and Import Tax No. 107/2016/QH13, effective from September 1, 2016, is the main legal basis.
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Decree 134/2016/ND-CP, detailed instructions for implementing the law; has been amended and supplemented by Decrees 18/2021/ND-CP and 26/2023/ND-CP.
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The consolidated import-export tax law issued by the Ministry of Justice consolidates the above documents, facilitating reference and application.
Businesses can look up and update these legal policies regularly at specialized units such as MAN Auditing Services, which supports the review of the correctness and completeness of documents and tax policies.
How to calculate import tax
Pursuant to Article 5 of the Law on Export Tax and Import Tax No. 107/2016/QH13, the basis for calculating tax includes tax rate and taxable value. Depending on each case, tax can be applied as a percentage or absolute tax rate.
In case of applying ad valorem tax rate, the calculation formula is as follows:
| Tax payable = Taxable value × Tax rate |
For imported goods, the taxable value is the CIF price, which includes the purchase price of the goods, plus the cost of transportation and insurance to the Vietnamese border gate. Conversely, when exporting goods, the taxable value is determined according to the FOB price, which is the price of the goods delivered at the border gate of export, excluding the cost of transportation abroad.
Certain specific goods are subject to absolute tax rates, meaning that instead of being calculated as a percentage, the tax rate is fixed for each unit of goods. In this case, the tax payable is calculated according to the formula:
| Tax payable = Quantity of goods × Absolute tax rate/unit |
In addition to basic import and export taxes, some goods are also subject to value-added tax (VAT) and special consumption tax (SCT). VAT is calculated on the total value of imported goods plus import tax, while SCT only applies to certain groups of goods such as alcohol, beer, cigarettes, cars with less than 24 seats, civil aircraft, etc.
Example of import tax
To better visualize how import tax is calculated in practice, let's consider two specific situations: one case of importing laptops from Korea and one case of exporting rice to the Philippine market.
Case 1: Importing laptops from Korea
A business in Vietnam imports a shipment of laptops from Korea, with a CIF value of VND20 million. According to the current tax schedule, this item is subject to import tax of 5% and value-added tax (VAT) of 10%.
First, import tax is calculated as 5% of 20 million, or 1 million VND. The value used to calculate VAT in this case is the value of the goods plus import tax, or 20 million + 1 million = 21 million VND. Therefore, VAT is 10% of 21 million, equivalent to 2.1 million VND.
The total tax that the business must pay when clearing this shipment is: 1 million (import tax) + 2.1 million (VAT) = 3.1 million VND.
Case 2: Exporting rice to the Philippines
Another unit in the Western region of Vietnam exports white rice to the Philippines, with an FOB price of VND25 million per ton. Rice is subject to export tax group 5% according to the current tax schedule.
Apply simple calculation: 25 million × 5% = 1.25 million VND
This is the export tax that businesses must pay on each ton of rice exported abroad.
The above two examples show that correctly determining the taxable value (CIF or FOB) and applicable tax rate is a key factor for businesses to proactively plan their finances and ensure compliance with import and export tax regulations.
Import and export tax schedule updated in 2025
In 2025, Vietnam's import-export tax schedule will continue to be maintained according to specific commodity groups, in which each HS code is associated with separate import and export tax rates. Below are some typical examples, helping businesses easily visualize how to look up and apply:
| Commodity group | HS Code | Import tax (%) | Export tax (%) |
|---|---|---|---|
| White rice | 1006.30 | 40% | 5% |
| Cars under 9 seats | 8703.21 | 70% (MFN tax) | – |
| Cold rolled steel coil | 7209.17 | 10% | 0% |
| Pharmaceuticals | 3004.90 | 0% (according to FTA) | – |
In addition to the most-favored-nation (MFN) tariff schedule, Vietnam is currently applying more than 17 special preferential tariff schedules under bilateral and multilateral free trade agreements (FTAs). Among them, the agreements that have a large impact on import-export activities include:
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EVFTA – Vietnam – EU Free Trade Agreement
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UKVFTA – Agreement with the United Kingdom
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ATIGA – ASEAN Free Trade Area
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CPTPP – Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Accurately understanding the applicable tax schedule not only helps businesses optimize import costs and increase profits, but also avoid legal risks during customs clearance. In particular, for businesses operating in industries sensitive to trade policies, correctly applying preferential tax rates from FTAs also brings sustainable competitive advantages in the international market.
Import and export taxes and their role in international trade
In the context of Vietnam's economy increasingly integrating deeply with the region and the world, import and export taxes are no longer just a simple fiscal tool, but have become a strategic lever in managing national trade policies.
First of all, import and export taxes help establish a fair competitive level between domestic goods and imported goods. Through appropriate tax rates, the State can protect young or struggling domestic industries, while encouraging sectors with competitive advantages to expand into international markets.
In addition, import and export taxes are legal tools to implement commitments in free trade agreements (FTAs). Compliance with preferential tariffs and origin of goods not only helps businesses take advantage of cost incentives, but also avoids risks of complaints, trade defense investigations or sanctions from international partners.
Another important role of import-export tax is to attract foreign investment capital, especially in the field of manufacturing - processing - export. Through import tax exemption policies for imported machinery, equipment, and raw materials for export production, Vietnam has become an attractive destination for many multinational corporations.
However, to fully take advantage of the benefits of the import-export tax system, businesses need to proactively review HS codes, determine the correct tax rates applicable to each market, and prove the origin of goods according to the regulations of each FTA. These factors not only directly affect import and export costs, but also determine the competitiveness of products in the global market.
Conclude
In international trade, import and export taxes are not only a financial obligation, but also a strategic factor that determines the costs, competitiveness and market expansion of enterprises. Understanding the concepts, purposes, tax schedules and how to calculate import and export taxes accurately will help enterprises proactively control risks and optimize financial efficiency in each shipment.
However, the import-export tax system is always associated with changes in laws, FTA commitments and operating policies. Therefore, businesses need to regularly review information, look up the correct HS code and prepare complete documents to avoid errors leading to tax arrears or delayed customs clearance.
If you need assistance in determining tax rates, filing customs declarations, processing tax refunds or checking the validity of import and export documents, consider using MAN Auditing ServicesWith a team of experienced professionals in the field of auditing and import-export tax consulting, MAN will help your business comply with the law and optimize costs in a systematic and effective manner.
