Determining tariffs, taxes and fees for goods imported into Vietnam

Import Tariff

After determining the classification of goods according to Vietnam's HS, the importer can estimate the import tariff rate applicable to such goods.

For German goods imported into Vietnam, there are 2 applicable tariff mechanisms, each corresponds to a certain tariff rate and conditions. The importer will base on the specific conditions of the goods to choose the most suitable and beneficial tariff for them. Specifically:

  1. MFN tariff: This is the tariff rate Vietnam applies to goods coming from WTO member countries. German goods imported into Vietnam are subject to MFN tariff without any attached conditions.

  2. EVFTA tariff: This is Vietnam's preferential tariff rate for goods coming from EU member countries (including Germany), the preferential tariff rate will be decided by Vietnam but must not be lower than the level committed in the EVFTA. However, to enjoy the EVFTA tariff, German goods exported to Vietnam must meet the rules of origin of the Agreement.

To determine the exact EVFTA tariff rate that Vietnam applies to German products, importers need to keep update on Vietnam's current regulations on the implementation of tariff commitments under this Agreement. The EVFTA tariff rates for the period of 2020-2022 is provided in the Decree 111/2020/NĐ-CP dated September 18, 2020 of the Government on the Special Preferential Import-Export Tariff to implement the EVFTA Agreement for the period of 2020 - 2022.

Value-Added Tax (VAT)

Most  goods imported into Vietnam are subject to value-added tax (except for some special goods). The value-added tax rate is usually 10%, but some are only subject to 5%.

However, if the imported product is used as an input for the production of another good, then the amount of value-added tax will later be deducted and refunded.

Excise Tax

Some imported goods are subject to excise tax, such as alcohol, tobacco, automobiles, etc. The excise tax rates vary depending on the type of goods.

Environmental Protection Tax

This is the tax applied to goods that, when being used, will have an adverse impact on the environment such as petroleum, coal, pesticides, etc.

Anti-dumping, Anti-subsidy and Safeguards duties

Some imported goods are investigated by Vietnam and imposed anti-dumping, anti-subsidy or safeguard duties, so they will be subject to these additional duties when imported into Vietnam. However, currently, no German products are subject to these duties by Vietnam.

Source: "Business Handbook: Exploiting the EVFTA  to import and export goods between Vietnam and Germany" - Center for WTO and International Trade