low price LG Vina asks Hanoi to tax DOP imports Germany

  • low price LG Vina asks Hanoi to tax DOP imports Germany
  • low price LG Vina asks Hanoi to tax DOP imports Germany
  • low price LG Vina asks Hanoi to tax DOP imports Germany
  • How much tax does Vietnam impose on imported goods?
  • This means that the importer will have to pay $1,500 in customs duties for that specific commodity. In addition to customs duties, Vietnam imposes three other types of taxes on imported goods: Value Added Tax (VAT), Special Consumption Tax (SCT) and Environmental Protection Tax ( FTE).
  • What is VAT in Vietnam?
  • VAT is an indirect tax applied to goods and services, including imported goods. VAT rates in Vietnam can be 0%, 5% or 10%, depending on the nature of the goods. Certain essential products may be exempt from VAT. The amount of VAT is calculated based on the value added in the supply chain. Example of VAT Calculation:
  • What products are exempt from VAT in Vietnam?
  • Certain categories of goods and services are exempt from VAT in Vietnam. These exemptions are mostly intended to encourage the consumption of essential products, to promote certain industries or to support social initiatives. Among the products exempt from VAT in Vietnam, we can mention: Books and newspapers.
  • What will happen if Vietnam's 0% VAT proposal is accepted?
  • If the Vietnam Federation of Commerce and Industry’s proposed draft is accepted, some industries will lose the 0% tax incentive. For instance, industries tied to software and IT will no longer benefit from the 0% VAT incentive when entering into agreements with foreign companies.
  • Who is obligated to pay a top-up tax in Vietnam?
  • Entities subject to the IIR, which includes Vietnamese parent entities holding ownership in constituents with low tax rates abroad, are now obligated to declare and pay a portion of the top-up tax. This is unless the tax has already been prioritized for payment in another jurisdiction under the GloBE Rules.
  • How much VAT is imposed on imported goods?
  • Suppose the value of the imported goods is USD 10,000, and the applicable VAT rate is 10%. VAT = $10,000 * 10% = $1,000. The SCT is imposed on consumer goods considered as luxury items or having a negative impact on health. Products subject to SCT are also subject to VAT. The amount of the SCT varies according to the nature of the product.

Recommended hot-selling products