Import Duty on Goods

Import duty is one of the most important costs that businesses must factor in when importing goods into Vietnam. A clear understanding of the types of taxes, how they are calculated, and available tax incentives can help businesses achieve significant cost savings and avoid legal risks.

According to data from the General Department of Customs, in 2025 Vietnam imported more than 380 billion USD worth of goods, with total import duty and VAT on imported goods reaching hundreds of trillions of dong. Businesses with solid knowledge of import-export taxes will have a significant competitive advantage in optimizing logistics costs. See also the article customs clearance process for imported goods to understand the process after paying taxes.

Import duty on goods — how to calculate import-export tax — Types of taxes on importing goods into Vietnam include import duty, VAT and excise tax

1. What is import duty?

Import Duty (Import Duty) is a tax levied on imported goods when they pass through Vietnam's customs territory. It is one of the important revenue sources for the state budget, and also a tool for the State to regulate international trade and protect domestic production.

Legal basis: Law on Export and Import Duties No. 107/2016/QH13 and its guiding decrees. Accordingly, imported goods entering Vietnam through border gates are subject to import duty, except in cases eligible for tax exemption as prescribed.

2. Types of taxes on goods imported into Vietnam

When importing goods into Vietnam, businesses must pay the following taxes and fees:

Type of tax/fee	Common tax rate	Calculation basis
Import Duty (MFN preferential)	0% – 35% depending on HS code	CIF value
VAT imported goods	8% (current) or 10%, 5%	CIF value + Import Duty (+ Excise Tax)
Special Consumption Tax	10% – 150% depending on the item	CIF value + Import Duty
Safeguard / Anti-Dumping Duty	Depending on the specific item	As decided by the Ministry of Industry and Trade
Environmental Protection Tax	Fixed per unit of goods	Based on weight/quantity

Note: Under Resolution 204/2025/QH15, eligible goods and services receive a VAT reduction from 10% to 8% from 1 July 2025 through 31 December 2026. The reduction does not cover every import. Check the goods and excluded categories under Decree 174/2025/ND-CP.

3. How to Calculate Import Duty

The import duty calculation formula is prescribed as follows:

Import Duty = Taxable value × Import duty rate

Where:

Taxable value is the CIF (Cost, Insurance, Freight) value of the goods at the import border gate
Import duty rate depends on the HS code and origin of the goods

Then, calculate VAT on imported goods:

VAT on imported goods = (Taxable value + Import duty + Special consumption tax, if any) × VAT rate

Example of import duty calculation

Illustrative assumptions: the stated 15% duty and 10% VAT rates are examples, not a determination for electronic goods. This example assumes goods that do not qualify for the 8% VAT reduction. Verify the actual HS code, origin, taxable value and VAT treatment before using the calculation.

A business imports 1 container of electronic goods from China with the following information:

CIF value: 50,000 USD
Import duty rate (MFN): 15%
VAT rate: 10%
Tax calculation exchange rate: 25,500 VND/USD

Item	Calculation	Amount
CIF Value (VND)	50,000 × 25,500	1,275,000,000 VND
Import Duty	1,275,000,000 × 15%	191,250,000 VND
VAT	(1,275,000,000 + 191,250,000) × 10%	146,625,000 VND
Total Tax Payable	191.250.000 + 146.625.000	337,875,000 VND

4. Basic Import Duty Rates

Import duty rates are divided into 3 main groups based on the origin of the goods:

Tariff Rate Type	Conditions for Application	Duty Rate
Preferential Tariff Rate (MFN)	Goods from countries with MFN agreements with Vietnam	Basic, 0-35%
Special Preferential Tariff Rate (FTA)	Goods from FTA countries + preferential C/O	Lower than MFN, potentially 0%
Standard tariff rate	Not eligible for preferential treatment	150% of the MFN tariff

Under FTA commitments, many items enjoy special preferential tariff rates that gradually decrease to 0%. This is a major opportunity for importers to save costs. See details in the article on EVFTA Agreement and C/O Certificate of Origin.

5. Cases of Import Tax Exemption and Reduction

Under the 2016 Import-Export Tax Law and guiding documents, several cases are exempt from import tax:

Goods temporarily imported for re-export, goods in transit without processing
Export and import goods of foreign organizations and individuals entitled to preferential treatment under international treaties
Imported raw materials and supplies for processing for foreign traders
Imported machinery and equipment for investment incentive projects
Gifts and presents within the tax exemption limit
Imported goods of small value below the prescribed threshold (minimum tax exemption)

6. Import Tax Payment Procedures

The current import tax payment process has been fully digitalised through the National Single Window Portal:

Submit an electronic customs declaration — declare cargo information, HS Code, value and origin
Channel System — green channel (inspection exemption), yellow channel (document check), red channel (physical inspection)
Determine Tax Payable — the system automatically calculates based on declared information
Tax Payment — via online banking or at the State Treasury
Customs Clearance — after full tax payment and completion of inspection

Businesses should carefully verify the HS code of the goods before declaration to avoid errors leading to penalties for incorrect declaration of codes and tax rates.

7. Import VAT

Import VAT is an indirect tax levied on the value added of goods at the import stage. Common tax rates:

10%: Standard rate before any applicable reduction; check whether the goods qualify for 8%
5%: Goods specifically subject to the 5% rate under the applicable VAT law
0%: Exported goods and special cases

Formula: VAT = (CIF value + Import Tax + Special Consumption Tax, if any) × VAT rate

8. Special Consumption Tax

Special Consumption Tax (SCT) applies to certain categories of imported goods to regulate consumption:

Item	SCT Rate
Alcohol of 20 degrees or higher	65%
Beer	65%
Cigarettes	75%
Cars with fewer than 9 seats (engine capacity under 2.0L)	35-50%
Air conditioners with a capacity of ≤ 90,000 BTU	10%
Gasoline of all types	10%

Important notes: Special Consumption Tax (SCT) is calculated on the price inclusive of import duty: SCT = (CIF value + Import Duty) × SCT Rate. Businesses need to factor in all these costs when planning imports.

9. Important Notes on Import Tax

Accurate HS Code classification: Incorrect HS codes lead to incorrect tax rates and may result in penalties of 20-40% of the underpaid tax and delayed customs clearance.
Correct origin declaration: To benefit from preferential tax rates, a valid C/O is required and the origin must be correctly declared on the customs declaration.
Check FTA preferences: Many goods from the EU (EVFTA), Japan (CPTPP), and South Korea (VKFTA) enjoy a 0% tax rate; take advantage of these.
Keep tariff schedules updated: Import tariff schedules change annually, so businesses should check the latest version.
Consider customs brokerage services: For new businesses, using customs brokerage services helps avoid errors and optimize costs.

Learn more about logistics services that support importing businesses in the article end-to-end logistics services for import-export cargo.

10. Frequently Asked Questions About Import Tax

Can import duty be offset against output VAT?

Import duty is a cost included in the cost of goods sold and cannot be offset against VAT. However, VAT on imported goods can be credited or refunded if the business pays tax under the credit method. Businesses need valid tax payment documents (State Budget payment receipts) as a basis for the credit.

What is the deadline for paying import duty?

Under current regulations, the deadline for paying import duty is 30 days from the date of customs declaration registration for commercial goods (green and yellow channels). For the red channel, businesses must pay tax before customs clearance. Goods that are overdue for tax payment will be subject to a late payment interest rate of 0,03% per day.

Does a C/O reduce import duty?

Yes, a C/O (Certificate of Origin) is a prerequisite for enjoying special preferential duty rates under FTAs. For example, imports from the EU with a C/O form EUR.1 enjoy a 0% duty rate under the EVFTA instead of the MFN rate. Without a C/O, businesses must pay duty at the higher MFN or ordinary rate.

What are the penalties for incorrectly declaring import duty?

Penalties for an incorrect HS code or tax rate must be assessed under Decree 169/2026/ND-CP, effective from 1 July 2026. The outcome depends on the conduct, tax consequences, party involved and case records. There is no single percentage of cargo value that applies to every error.

Are logistics costs included in the dutiable value?

Under the customs valuation method (GATT), the dutiable value is the CIF price, comprising: goods value + international freight + insurance. Costs incurred after the destination port (such as domestic transport, warehousing, container lifting) are not included in the dutiable value. Businesses need to allocate these costs accurately in customs documents.