I am an Indian citizen and currently working for a company in Vietnam and have a residence card. I wish to import my motorcycle, which I have used for one year in India, into Vietnam for personal movement during the time I work here, and I will bring it back to India when my work in Vietnam finishes.
Am I taxed or entitled to tax exemption or reduction when importing my motorcycle? If I am taxed, then what kinds of tax and duty must I pay and what customs procedures am I required to carry out for the motorcycle import?
According to Vietnamese law, imported motorcycles must be brand-new ones. If you wish to import used motorcycles into Vietnam for personal movement purpose, you are required to carry out the customs procedures under the regulations on personal effects of foreign individuals working in Vietnam.
Regarding taxes and duties,
you will be exempted from import duty if your motorcycle is brought into Vietnam as a personal effect of a foreigner permitted to reside and work in Vietnam at the invitation of a competent state agency, or moved to a foreign country when your duration of residing and working in Vietnam expires. As your motorcycle is not regarded as a commodity, it will not be subjected to value-added tax.
However, when imported, foreigners’ motorcycles are liable to excise tax, which will be calculated based on the taxed price and tax rate. In your case, an excise tax rate of 20 percent will be imposed on your two-wheeled motorcycle.
Accordingly, payable excise tax = (taxed price of imported motorcycle + import duty (which you are exempted from)) x 20 percent.
For used motorcycles that are owned by foreign individuals and satisfy technical conditions and standards to be imported into Vietnam as prescribed by law, each individual will be exempted from import duty for only one motorcycle, but will have to pay excise tax and value-added tax in accordance with law.
Regarding the customs procedures,
personal effects of individuals, households or organizations must go through the customs procedures and be subject to customs inspection and supervision. Exporters or importers of goods being personal effects must produce papers proving their residence and operation in Vietnam or overseas.
According to Clauses 1 and 2, Article 45 of Government Decree No. 08/2015/ND-CP dated January 21, 2015, when wishing to bring his personal effects into Vietnam, a foreigner must clear the customs procedures by submitting:
- A customs declaration: two originals (payable fee: VND 20,000 per declaration);
- A written accreditation for his work in Vietnam, issued by the organization or agency where he is working, or a work permit issued by a Vietnamese competent agency: one copy; and,
- A transportation document, if such personal effect is transported by sea, air or railway: one copy.
Time limit for settlement:
- Customs offices will receive, register and examine customs dossiers right after customs declarants submit or produce their dossiers as prescribed by the customs law.
- The time limit for customs officers to complete the examination of dossiers and physical inspection of goods and means of transport is as follows:
+ To complete the examination of customs dossiers within two working hours after receiving complete customs dossiers;
+ To complete the physical inspection of goods within eight working hours after customs declarants fully produce goods to customs offices.- (VLLF)