Tax rate imposed on sending mobile phones to VN

Illustration photo

Answer (Lawyer NHQuang’s Office, B23 Trung Hòa–Nhân Chính Villa Complex, Thanh Xuân District, Hà Nội):

Under the Ministry of Finance’s Circular No. 40/2008/TT-BTC dated on May 21, 2008 and the Government’s Decree 40/2007/NĐ-CP dated on March 16, 2007 guiding the customs valuation of imports and exports, the dutiable value of the aforesaid mobile phone depends on its price stated in invoices. 

Based on Việt Nam’s regulations on tax and tax management, the phone will be imposed with import duty and value-added tax.

If the mobile phone has a price of €200, its tax rate is calculated as followed:

Import duty

According to the Law on Export and Import Duties and the Preferential Import Tariff which is enclosed to Circular 31/2010/TT-BTC of the Ministry of Finance on November 12, 2009, the import tax applicable to each mobile phone is 3%.

Payable import tax = Dutiable value x import tax rate = €200 x 3% = €6 

Value added tax (VAT)

In accordance with Item 3, Article 8 of the Law on Value-Added Tax, the 10% VAT rate is applied to a mobile phone.

According to Point 1.2, Section I, Part B, Circular 129/2008/TT-BTC of the Ministry of Finance:

Payable VAT = (Dutiable value import tax) x VAT rate = (200 6) x 10% = €20.6 

Hence, the total amount of payable tax for sending a €200 mobile phone to Việt Nam is €20.6./.