How to Calculate Duties and Taxes on Imports to Vietnam is a critical step for any international business. Import duties and taxes are mandatory fees levied by the government, and their calculation depends on the product's classification (HS Code), its customs value, and the country of origin. The official authority is the General Department of Vietnam Customs. A major change in 2025 is the elimination of the low-value shipment exemption, meaning the effective Duty De Minimis and Tax De Minimis thresholds for commercial imports are now VND 0, as the previous VND 1,000,000 exemption was removed effective February 18, 2025.
Import duties in Vietnam are categorised into three main types: Ordinary, Preferential, and Special Preferential. Ordinary rates apply to goods from countries without a trade agreement with Vietnam. Preferential rates apply to goods from countries with Most-Favoured-Nation (MFN) status. Special Preferential rates offer the lowest or zero duty and apply to goods imported from countries that have a Free Trade Agreement (FTA) with Vietnam, provided the goods meet the specific Rules of Origin and are accompanied by a valid Certificate of Origin. To accurately calculate import tax in Vietnam, the first step is classifying your product using the Vietnam-specific 8-digit Harmonized System (HS) code, which determines the applicable tariff rate.
The process of calculating customs duties in Vietnam is based on a multi-layered tax structure. The total tax liability for an imported shipment is the sum of Import Duty, Special Consumption Tax (SCT), Environmental Protection Tax (EPT), and Value-Added Tax (VAT), where applicable. The foundation for all these calculations is the Customs Valuation.
Customs Valuation Basis (Dutiable Value) Vietnam uses the Cost, Insurance, and Freight (CIF) value as the primary basis for calculating Import Duty. The CIF value represents the transaction value of the goods, plus the cost of freight and insurance incurred to bring the goods to the first port or place of entry in Vietnam. This dutiable value is the base for calculating the Import Duty. Vietnam follows the World Trade Organization (WTO) Customs Valuation Agreement, prioritising the Transaction Value (the price actually paid or payable) as the preferred method.
How Import Duty is Calculated in Vietnam Import Duty is calculated by applying the specific tariff rate (determined by the 8-digit import HS code and country of origin) to the CIF value. The resulting Import Duty amount is then added to the CIF value to form the new base for subsequent taxes.
Common Import Taxes In addition to Import Duty, the following taxes may apply:
De Minimis Threshold Change (2025) To accurately estimate landed cost, importers must note the significant 2025 regulatory change. The long-standing exemption from import duty and VAT for low-value imports (under VND 1,000,000) via express delivery was officially eliminated on February 18, 2025. This means that virtually all commercial shipments, regardless of value, are now subject to applicable duties and taxes, making the effective de minimis threshold VND 0 for commercial purposes. Importers must use an import tax calculator Vietnam tool or consult a customs broker to ensure compliance with the new rules.
Determine the Customs Value (Dutiable Value): Use the Cost, Insurance, and Freight (CIF) value of the imported goods. This is the transaction price plus all costs to bring the goods to the first port of entry in Vietnam.
Determine the Import Duty: Classify the goods using the 8-digit import HS code and apply the corresponding tariff rate (Ordinary, Preferential, or Special Preferential based on the Certificate of Origin) to the CIF Value. (Import Duty = CIF Value x Import Duty Rate).
Calculate Special Consumption Tax (SCT) and Environmental Protection Tax (EPT): If applicable, calculate SCT on the (CIF Value + Import Duty) and EPT based on the quantity of goods at the fixed rate per unit.
Calculate Value-Added Tax (VAT): Apply the VAT rate (typically 10%) to the total taxable base. (VAT Base = CIF Value + Import Duty + SCT + EPT). (VAT = VAT Base x VAT Rate).
Determine Total Tax Liability: The total amount due to the General Department of Vietnam Customs is the sum of Import Duty + SCT + EPT + VAT.
A commercial shipment of non-luxury goods with a CIF value of VND 500,000 (below the former VND 1,000,000 exemption) is now subject to Import Duty and VAT, as the low-value exemption was removed in February 2025.
A shipment of machinery from an FTA partner country with a valid Certificate of Origin will qualify for the Special Preferential Tariff rate, which is often 0%, significantly reducing the Import Duty component of the landed cost.
A shipment of alcoholic beverages will incur Import Duty (on CIF Value), Special Consumption Tax (on CIF Value + Import Duty), and Value-Added Tax (on CIF Value + Import Duty + SCT), requiring a complex calculation to determine the final customs duties in Vietnam.
Failing to use the Vietnam-specific 8-digit import HS code, which can lead to incorrect tariff rates and customs penalties.
Assuming the VND 1,000,000 de minimis exemption is still active for express shipments, resulting in an underestimation of the total import tax in Vietnam.
Neglecting to obtain a Certificate of Origin for goods from FTA countries, which forfeits the right to the lower Special Preferential Tariff rates.
Incorrectly calculating the VAT base by excluding the Import Duty, SCT, or EPT, which are all components of the final taxable value.
Vietnam operates several special regimes that affect import duties and taxes. Goods imported into Free Trade Zones (FTZs) or those used for export-oriented production or incentivised investment projects are typically exempt from Import Duty and Import VAT. The most significant recent change is the elimination of the low-value tax exemption for express delivery shipments under VND 1,000,000, effective February 18, 2025, which now subjects virtually all cross-border eCommerce goods to both duty and VAT. Furthermore, the customs declaration process is managed through the electronic VNACCS/VCIS system, which facilitates faster clearance and is essential for all formal import declarations.
The total import tax is the sum of Import Duty + Special Consumption Tax (SCT) + Environmental Protection Tax (EPT) + Value-Added Tax (VAT). The Import Duty is calculated on the CIF value, and the VAT is calculated on the CIF value plus all other duties and taxes.
The effective de minimis threshold for commercial imports is VND 0. The previous exemption for low-value express shipments under VND 1,000,000 was eliminated on February 18, 2025, meaning these shipments are now subject to duty and VAT.
Vietnam uses the Cost, Insurance, and Freight (CIF) value as the primary basis for calculating Import Duty. The CIF value is the transaction price plus the cost of international freight and insurance to the first port of entry.
The standard Value-Added Tax (VAT) rate on imported goods in Vietnam is 10%. Certain essential goods may be subject to a reduced rate of 5% or be exempt.