New regulations on import tax on used cars

Accordingly, Decree No. 26/2023/ND-CP is issued with the following 4 appendices:

1. Appendix I - Export tax schedule according to the List of taxable items.

2. Appendix II - Preferential import tariff schedule according to the List of taxable items.

3. Appendix III - List of goods and absolute tax rates, mixed tax rates for used passenger cars with 15 seats or less.

4. Appendix IV - List of goods and import tax rates outside tariff quotas for goods subject to tariff quotas.

New regulations on import tax for used cars, picture 1 — Used passenger cars with 9 seats or less and a cylinder capacity of no more than 1,000cc in group 87.03 are subject to an absolute tax rate. Illustrative photo

Import tax on used cars

Notably, the Decree stipulates that used passenger cars with 9 seats or less and a cylinder capacity of no more than 1,000cc in group 87.03 are subject to the absolute tax rate specified in Appendix III issued with this Decree.

Used passenger cars with 9 seats or less and a cylinder capacity of over 1,000cc in group 87.03 and with 10 to 15 seats in group 87.02 are subject to the mixed tax rate specified in Appendix III issued with this Decree.

Used passenger cars with 16 seats or more in group 87.02 and used motor vehicles used to transport goods with a total designed weight of no more than 05 tons, in group 87.04 (except refrigerated cars, waste collection cars with waste compression devices, tank trucks, armored cars for transporting valuable goods; tank-type cement trucks and mud trucks with removable liftable tanks) are subject to a preferential import tax rate of 150%.

Other types of used cars in groups 87.02, 87.03, 87.04 are subject to a tax rate of 1.5 times the preferential import tax rate of unused cars of the same type in the same group specified in Section I, Appendix II issued with this Decree.

Preferential import tax rates for mechanical processing machinery products

Also according to the Decree, mechanical processing machine items belonging to groups 84.54 to 84.63 apply preferential import tax rates as follows:

Firstly, mechanical processing machines that are not yet produced domestically are subject to a preferential import tax rate of 0%. Mechanical processing machines mentioned in this clause are not included in the List of domestically produced machinery and equipment prescribed by the Ministry of Planning and Investment.

Second, mechanical processing machine items not falling under the cases specified in Clause 1 of this Article shall apply the preferential import tax rates of groups from 84.54 to 84.63 specified in Section I of Appendix II on the Preferential Import Tariff according to the List of taxable items issued with this Decree.

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