Importing goods into Vietnam involves several layers of tax, and each one uses a different calculation base. Many foreign investors budget for import duty alone, then discover at customs that other than Value-Added Tax (VAT), Special Consumption Tax (SCT), and Environmental Protection Tax (EPT) also apply to their shipment as well.
In this article, we will explain how to calculate import duty in Vietnam step by step. We will cover the current duty rate structure, the taxes that apply on top of it, and the most recent regulatory changes affecting your tax calculations in Vietnam.
Understanding Import Tax and Duty in Vietnam
Vietnam Customs, operating under the Ministry of Finance, governs the collection of import tax and duty in Vietnam. Every imported product carries an eight-digit Harmonized System (HS) code, which determines the duty rate, the applicable VAT rate, and any licensing requirements attached to the goods.
Vietnam applies three tiers of import duty rates. Each tier you fall into depends on where your goods originate:
- Preferential rates (MFN rates): These apply to goods from countries with Most Favored Nation status, which covers all World Trade Organization (WTO) members. Goods from the United States fall under this tier because the US has no free trade agreement with Vietnam. Vietnam's average MFN duty sits at around 7.9%, though rates vary widely by product.
- Special preferential rates: These apply to goods originating from countries that share a free trade agreement (FTA) with Vietnam. Vietnam currently has 17 active FTAs, giving it preferential trade links with more than 50 markets worldwide. Rates under this tier are often reduced to 0%, provided you present a valid Certificate of Origin.
- Ordinary rates: These apply to goods from countries outside both categories. Ordinary rates are set at 150% of the corresponding MFN rate, which makes them the most expensive tier by a wide margin.
For example, a trading company imports furniture from South Korea and identical furniture from a non-WTO country. The Korean shipment qualifies for special preferential rates under the Vietnam-Korea Free Trade Agreement. The other shipment pays the ordinary rate at 150% of the MFN figure. The products are the same, yet the landed costs differ dramatically because of origin alone.
Major agreements include the ASEAN Trade in Goods Agreement (ATIGA), the CPTPP, the EVFTA with the European Union, the UKVFTA, RCEP, and bilateral deals with Japan, South Korea, Chile, and Israel. Emerhub's local agents can confirm whether your goods qualify under any of these agreements.
Key Changes to Vietnam’s Tax and Import Duties in 2026
Vietnam updated several import tax rules recently, and these changes directly affect how much you pay at the border.
- The low-value exemption no longer exists: For years, shipments under VND 1 million (~USD 38) sent via express delivery entered Vietnam free of import duty and VAT. The government abolished this exemption on February 18, 2025. Every commercial shipment now attracts applicable taxes regardless of value. If your business model relied on splitting orders into small parcels, that approach no longer works.
- VAT stays at 8% for many goods until the end of 2026: Vietnam extended its 2% VAT reduction under Resolution 204/2025/QH15. Goods that normally attract 10% VAT pay 8% until December 31, 2026. This applies at the import stage as well as at the point of sale. Certain categories remain at 10%, including goods subject to SCT, so you need to confirm where your product sits before you budget.
- MFN duty rates dropped for selected goods: Decree 73/2025/ND-CP lowered preferential import duty rates on automobiles, wood products, agricultural commodities such as corn and frozen chicken, ethanol, and liquefied petroleum gas. If you import within these categories, your duty bill may be lower than published figures from before March 2025.
- SCT rates increased from January 1, 2026: The amended Special Consumption Tax Law raised rates on tobacco, alcohol, and beer, and extended the tax to new products such as sugary beverages. Importers of these goods should recalculate their landed costs using the new schedule.
Bear in mind that more adjustments are likely as Vietnam refines its tax framework. Emerhub's consultants in Vietnam track every update and can confirm exactly which rates apply to your products before you commit to a shipment.
How to Calculate CIF Value
To calculate your import duty, you need your CIF value. CIF stands for Cost, Insurance, and Freight, and Vietnam Customs uses it as the taxable base for import duty. It consists of three components:
- Cost: The transaction price of the goods, usually the invoice value.
- Insurance: The cost of insuring the goods during transit to Vietnam.
- Freight: The cost of transporting the goods to the Vietnamese port of entry.
Suppose you import machinery priced at USD 20,000, pay USD 400 for insurance, and USD 600 for sea freight to Hai Phong. Your CIF value is USD 21,000. Customs applies the duty rate to this figure, not to the invoice price alone.
Make sure you declare your CIF value accurately and keep supporting documents for every component. Customs officers can reject a declared value they find unrealistic and substitute the transaction value of identical or similar goods instead. Under-declaration triggers a 0.03% daily interest charge on unpaid amounts, while serious cases carry fines of up to VND 4.5 billion or criminal liability.
Taxes That Apply on Top of Import Duty
Besides the import duty, there are also other taxes that you should be aware of, with each cost using a progressively larger base.
1. Value-Added Tax (VAT)
VAT applies to nearly all imported goods. The rate depends on which category your product falls into:
- 0% applies to exported goods and a narrow set of specific cases.
- 5% applies to essentials such as clean water, certain medical equipment, and selected agricultural inputs.
- 10% is the standard rate, temporarily reduced to 8% for eligible goods until December 31, 2026.
For imports, VAT is calculated on the CIF value plus import duty plus any SCT and EPT. This creates a tax-on-tax effect. Your effective VAT cost always exceeds the headline rate applied to your invoice value.
The good news for registered businesses is that import VAT is generally creditable. If your Vietnamese entity declares VAT under the deduction method, the VAT you pay at the border offsets your output VAT. Import duty offers no such credit, so it represents a true cost.
2. Special Consumption Tax (SCT)
SCT is Vietnam's excise tax on goods considered luxury items or harmful to health. It is calculated on the CIF value plus import duty. The amended SCT Law took effect on January 1, 2026 and introduced scheduled increases for several categories, so the rate you pay this year will not necessarily hold next year.
Here are the main product groups and their 2026 rates:
| Product Group | SCT Rate in 2026 |
|---|---|
| Spirits and liquor (20% ABV or higher) | 65%, rising in stages to 90% by 2031 |
| Alcoholic beverages under 20% ABV | 35%, rising in stages to 60% by 2031 |
| Beer | 65%, rising in stages to 90% by 2031 |
| Tobacco products | 75%, plus a fixed per-pack tax from 2027 |
| Automobiles under 24 seats | Varies by engine size and fuel type |
| Motorcycles above 125cc | 20% |
| Aircraft and yachts | 30% |
| Petroleum | 7% to 10% |
| Air conditioners (over 24,000 BTU up to 90,000 BTU) | 10% |
| Sugary drinks (over 5g sugar per 100ml) | Taxable from 2027 at 8%, then 10% from 2028 |
Note that:
- Air conditioners of 24,000 BTU or below now fall outside SCT entirely, which is a change from the previous law.
- Sugary beverages face no SCT in 2026, but importers should build the 2027 rate into any pricing that extends beyond this year.
3. Environmental Protection Tax (EPT)
EPT applies to goods that harm the environment. The main targets are petroleum products, coal, plastic bags, and certain chemicals such as pesticides.
Unlike the other taxes, EPT is a fixed amount per unit rather than a percentage of value. This distinction changes how you should think about it. A percentage tax scales with your invoice, while EPT scales with volume.
If you import 1,000 kilograms of plastic bags taxed at VND 50,000 (~USD 2) per kilogram, your EPT is VND 50 million (~USD 1,900) regardless of what you paid for the goods. Cheap, high-volume goods can therefore carry a surprisingly heavy EPT burden relative to their value.
How to Calculate Import Duty in Vietnam: Step-by-Step Process
The calculation follows a strict order because each tax feeds into the base of the next. Here are the formulas:
- Import Duty = CIF Value x Duty Rate
- SCT (if applicable) = (CIF Value + Import Duty) x SCT Rate
- EPT (if applicable) = Quantity x Fixed Rate per Unit
- VAT = (CIF Value + Import Duty + SCT + EPT) x VAT Rate
Let’s assume you import alcoholic beverages with a CIF value of USD 10,000 from a country with no preferential agreement. For illustration, assume a 20% import duty rate, a 35% SCT rate, and the 10% VAT rate that applies to SCT goods.
| Values Needed | Formula | Calculation |
|---|---|---|
| Import Duty | CIF x 20% | USD 10,000 x 0.20 = USD 2,000 |
| SCT Base | CIF + Import Duty | USD 10,000 + USD 2,000 = USD 12,000 |
| SCT | SCT Base x 35% | USD 12,000 x 0.35 = USD 4,200 |
| VAT Base | CIF + Import Duty + SCT | USD 10,000 + USD 2,000 + USD 4,200 = USD 16,200 |
| VAT | VAT Base x 10% | USD 16,200 x 0.10 = USD 1,620 |
| Total Taxes | Import Duty + SCT + VAT | USD 2,000 + USD 4,200 + USD 1,620 = USD 7,820 |
Your USD 10,000 shipment carries USD 7,820 in taxes, a 78% effective rate. Now compare that with a shipment of standard machinery from an FTA partner. With a 0% special preferential duty rate, no SCT, and 8% VAT, the same CIF value would attract only USD 800 in creditable VAT. The gap between these two scenarios explains why HS classification and origin documentation deserve serious attention before you ship.
Actual rates depend entirely on your HS code, so confirm your classification against Vietnam's current tariff schedule before committing to any pricing. Emerhub's tax consultants in Vietnam can verify your HS codes and calculate your exact landed cost before your goods leave the origin port.
Import Duty Exemptions in Vietnam
Vietnam grants customs duty exemptions in several situations. Used correctly, they can significantly optimize your cost structure:
- Goods imported for export production: Raw materials and components imported to manufacture goods for export enter free of import duty and import VAT. A garment factory importing fabric to produce clothing for the European market pays nothing at the border, as long as the finished goods actually leave Vietnam.
- Incentivized investment projects: Machinery and equipment forming fixed assets of projects in encouraged sectors or locations can enter duty free. This exemption typically applies once, at the point where you build or expand your facility.
- Non-tariff zones: Goods imported into free trade zones and used within them fall outside the scope of import duty. Duty only becomes payable if the goods later move into the domestic market.
- FTA claims with a valid Certificate of Origin: This is technically a rate reduction rather than an exemption, but a correct CO under agreements such as ATIGA, the CPTPP, the EVFTA, or RCEP often brings your duty to 0%.
Each exemption carries strict documentation requirements, and customs treats the conditions as ongoing obligations rather than a one-time check. For instance, a manufacturer that imports fabric duty-free for export production, then diverts part of it to the domestic market.
That manufacturer must declare the change and pay the taxes originally exempted, plus late payment interest counted from the original import date. Customs audits look for exactly this pattern. This makes it crucial to keep records that trace your exempted materials all the way to the exported product.
Emerhub supports you through the entire process. Before your goods depart, our consultants in Vietnam classify your products, verify the rates, and prepare your customs documentation. Upon clearance, we handle the tax filings and any follow-up from customs. Our experts on the ground also monitor regulatory changes on an ongoing basis, ensuring your operations stay compliant long after the first shipment lands.
Talk to our consultants about calculating and minimizing your import tax and duty in Vietnam. Fill out the form below to book a free consultation.
Frequently asked questions
Do I need a local business entity in Vietnam to import goods?
Under standard regulations, only companies legally registered in Vietnam with a valid import license can clear commercial shipments through customs. If you do not have a local office, you can partner with a local trade service provider like Emerhub to act as your Importer of Record. This allows you to import and distribute your goods legally without the overhead of establishing a permanent company.
What happens if I use the wrong HS code on my customs declaration?
Using an incorrect HS code can lead to several severe consequences. If the error is caught at the border, customs authorities will hold your shipment, reclassify the goods, and assess the correct duties. You may also face administrative fines for incorrect declaration. If the error is discovered during a retroactive customs audit, you could be liable for years of back taxes, interest charges, and systemic penalties.
How does Vietnam verify the customs value of my shipment?
Vietnam Customs prioritizes the transaction value method, which is based on the actual price paid as shown on your commercial invoice. However, if they suspect the invoice value is inaccurate, they will refer to their internal national price database for similar commodities. If your declared price falls significantly below their database threshold, you must provide written explanations and evidence of your transaction to defend your valuation.
Are promotional samples or marketing materials exempt from import duties?
Following the repeal of the low-value tax exemption in February 2025, commercial samples and promotional items are subject to standard import duties and VAT. If the items have no commercial value, you must still declare them and assign a realistic nominal value for customs assessment purposes.
Can I recover the VAT I pay at the time of importation?
If your Vietnamese business entity is registered under the standard VAT deduction method, you can offset the input VAT paid at the border against the output VAT you collect from your domestic customers. If you are a dedicated exporter and accumulate excess input VAT that cannot be fully offset. However, you can apply for a formal VAT refund from the tax authority, provided you meet all electronic invoicing and non-cash payment conditions.
What document is required to claim a special preferential tariff under an FTA?
To claim a special preferential tariff, you must submit a valid Certificate of Origin (C/O) matching the specific template of the relevant trade agreement. For example, imports under the ASEAN Trade in Goods Agreement require a Form D, while imports under the CPTPP may utilize a specific self-certification format. The certificate must be free of typographical errors and issued before or at the time of export.