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The Ultimate Guide to Buying a New Car: Understanding the Process, Procedures, and Associated Costs

Congratulations on your new car purchase! We know you're eager to hit the open road, but first, there's the important task of registering your new vehicle. Don't worry; we're here to guide you through the process with our comprehensive step-by-step guide. Registering your car might seem like a daunting task, but with our help, you'll be driving legally in no time. So, read on to discover the ins and outs of new car registration and get ready to cruise with confidence!

Administrator

17 July, 2024

Owning a car is no longer as difficult as it used to be, but registering a newly purchased car requires knowledge of the necessary procedures to save significant time and money. Don’t worry, the following article will guide you through the process.

The Decree No. 77/2009/ND-CP outlines the procedure for registering a new car, which includes the following steps:

1Step 1: Pay the Car Registration Tax

Currently, the car registration tax in Hanoi is the highest (12%), and the license plate fee in the capital is also the highest (VND 20 million). In Ho Chi Minh City, the license plate fee is VND 11 million, while in other provinces, it is only VND 1 million.

Additionally, since April 10, 2019, according to Decree 20/2019/ND-CP, which amends and supplements several articles of Decree 140/2016/ND-CP, the registration fee for pickup trucks and van trucks is 6% and 7.2%, respectively, depending on the province or city (this fee is decided by the Provincial People’s Committee). The validity period remains at 25 years (C, D, and H license plates).

The following documents are required before paying the car registration tax:

Factory-issued vehicle quality inspection certificate (original)

Vehicle purchase invoice between the dealership and the buyer (original)

Vehicle purchase invoice between the manufacturer and the dealership (copy)

Copy of ID and Household Registration Book for individual buyers (bring the originals for verification)

Copy of Business Registration Certificate for private company buyers

Copy of Investment Certificate for foreign joint venture company buyers

Prepare the vehicle purchase invoice between the dealership and the buyer before paying the car registration tax

Procedure for Paying the Car Registration Tax

Submit the documents at the district/city Tax Office where the vehicle owner is registered (submit 1 original and 1 copy of the documents). The buyer will be guided through the procedures and will fill out a tax declaration form at the Tax Office.

People paying the car registration tax

After paying the tax, the buyer will receive a receipt as proof of payment. At this point, the buyer will take the original documents, while the Tax Office will keep the copies. (Make sure to check the information on the receipt carefully.)

If you are looking to transfer the car ownership but are unsure of the procedure, check out our website for a detailed guide.

2Step 2: Register and Obtain the Vehicle License Plate

Documents for Car Registration and License Plate Issuance

The following documents are required:

Tax declaration form and tax payment receipt.

1 vehicle registration form with the chassis and engine numbers affixed.

Vehicle quality inspection certificate (original).

VAT invoice from the dealership to the customer (original).

Declaration of origin for imported cars (original – for imported vehicles).

For private customers: Original ID and Household Registration Book.

For private companies and private enterprises: Copy of Business Registration Certificate.

Letter of introduction for the person registering the vehicle (including the director).

For foreign joint venture companies: Copy of Investment Certificate + Letter of Introduction for the person registering the vehicle (including the director)

Fees for Car Registration and New License Plate Issuance

For passenger cars with 5 to 10 seats:

Area I (including Hanoi and Ho Chi Minh City): VND 2 million

Area II (including centrally-controlled cities, excluding Hanoi and Ho Chi Minh City, and cities and towns under provincial control): VND 1 million

Area III (including areas outside Areas I and II): VND 200,000

For pickup trucks and van trucks: The common fee for these vehicles is VND 500,000.

Procedure for Car Registration and New License Plate Issuance

The buyer should bring the car and all related documents to the Road and Railway Traffic Police Department in their place of residence. The registration and license plate issuance process includes the following steps: submit documents, wait for vehicle inspection, pay registration fees, draw license plate numbers, receive license plates and registration appointment.

Road and Railway Traffic Police Department where car registration and license plate issuance takes place

Typically, the buyer will receive the vehicle registration within 2-3 days. Make sure to check the accuracy of the information on the registration to allow for timely corrections.

3Step 3: Vehicle Inspection

Vehicle Inspection Location

The buyer can get their new car inspected at the local Directorate for Standards, Metrology, and Quality (Chi cục đăng kiểm) in their place of residence. There are over 90 inspection centers across provinces and cities in Vietnam, which can be easily found online.

A vehicle inspection center

Documents for Vehicle Inspection

The following documents are required:

Vehicle registration certificate or appointment slip (original)

01 set of chassis and engine numbers

Vehicle quality inspection certificate (copy)

Invoice from the dealership to the customer (copy)

Letter of introduction for vehicle registration in a transportation company (for vehicles used for passenger transportation)

Liability insurance

2021 Vehicle Inspection Fee Schedule

In addition to the vehicle inspection fee, vehicle owners must also pay the road maintenance fee. Usually, this fee is paid according to the vehicle’s inspection cycle.

Road Use Fee Table

See also: Latest Updates for 2022: Inspection Fees and Cycles

The above information provides an overview of the procedures for registering a new car in 2021. We hope that this guide has equipped you with the necessary knowledge as you prepare to welcome your new car or plan to purchase one. We wish you all the best.