The new Price list of Registration fees for automobiles and motorcycles by 2017

The new Price list of the Registration fees for mortocycles which enclose the draft Circular

Electronic declaration and payment

Accordingly, the Ministry of Finance will issue the Price list of Registration fees which will be applied nationwide by January 1,2017.

The building of the Draft Circular aims to implement provisions under the Law on Fees and Charges No.97/2015/QH13 and Government Decree No.140/ND/CP on Registration fees.

According to the Ministry of Finance, the target of promulgating the Price list of Registration fees is aimed at applying electronic declaration and payment; restructure of the price list in order, simplify and facilitate for tax payers and the people who can search the information on the web site, and integrate the data of the relevant ministries and agencies and the source of the internal database of the Ministry of Finance.

The method of building the Price list is implemented on the basis of: the database of the vehicle type provided by the Registry Department; consult the opinions of Tax Departments; investigate the reality in some localities and the enterprises which manufacture and adjust, import the automobiles and motorcycles; collect and analyse the Price list of the Registration fees of 63 provincial and city Tax Departments.

Price calculation is the price of the actual property transfer market is defined through a legal bill of sale; product cost (for assets produced, manufactured to consumer); dutiable value of imports in accordance with the law on Customs plus import duty plus a special consumption tax plus VAT, if any (for assets imported).

The price calculation is the disposal price of the actual assets on the market which are defined through the legal invoice and the price of the products (for the assets which are produced and manufactured for consumption); the imported duty value as per provision of the Law on Customs plus the Imported duty plus the Special Consumption Tax plus the Value Added Tax if any (for the imported assets).

For used assets (except imported assets which are used), the price to calculate the Registration fees is determined based on the used time and the remaining value of the assets.

The list of automobiles and motorcycles group is built based on the vehicle groups which are provided by the Registry Department with historical data from 2000 to now. The list of automobiles is divided into 4 categories: Cars include 6 criteria (brand, trade mark, capacity, wheel formulas, number of seats, origin); Trucks include 3 criteria (brand, capacity, origin); Coaches include 3 criteria (brand, number of seats, origin); Electric cars include 4 criteria (brand, trade mark, number of seats, origin).

The list of motorcycles is divided into 2 categories: Motorcycles include 4 criteria (brand, trade mark, capacity, origin); Electric motorcycle includes 1 criteria (origin).

The registration fees subtracted for vehicles before 1st January 2017

The specific price rate is built on the basis of collecting the minimum price list which calculate the Registration fees as per current price lists which are implemented in 63 provinces and cities nationwide. The price list is issued for vehicles including: two-wheel motorcycles, three-wheel motorcycles. Motorcycles and similar vehicles must be registered and attached license plates which are issued by the competent State agencies; cars, trailers or semi-trailers pulled by automobiles and similar vehicles must be registered and attached license plates which are issued by the competent State agencies; body, chassis, engines of ships, board, aircraft, or automobiles if replaced must be registered with the competent State agencies.

This price list takes affect under the current year and is not applied as per the production year.

For the same category of vehicles with the production year prior to the time of issuing the price list, the calculatation of vehicle price will be based on the time of issuing the price list and will be subtracted at the rate of 5% for 2 years. After 10 years production, apply the rate of 75% of the price of the Registration fees compared to the current price. For example: the price of a new car under the Price list of the Registration fees which will be applied nationwide (by January 1, 2017) is 1 billion vnd , the new car which is the same category and produced in 2011 is 850 million vnd.

The Ministry of Finance explained that the reason for the issuance of this principle was to simplify so the the Price list is not issued on the basis of production year as before and to ensure equality in accordance with the market price. Besides, the Price list does not stipulate details for the country of production, but it distinguishes the origin of vehicles because the value of vehicles has not really had a big gap. Therefore, it will be complicated to regulate the price list for each country.

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For the mechanism of updating the price list, the Ministry of Finance expects to regulate that the price list of the manufacturer, distribution agents for imported vehicles, manufactured vehicles, through the e-Portal of the General Department of Taxation which is connected with the General Department of Custom to receive the database on the Customs valuation of imported vehicles. The vehicles list will update the date of the Registry authority. The updating of price is implemented on the application of information technology at 3 levels - Tax Branch, Tax Department and General Department of Taxation.