Vietnam is rapidly developing with the trend of globalization and integration and the people have much focused on convenience and environmental protection. Therefore, trading imported electric motorcycles and electric bicycles has been becoming more and more bustling and bringing great revenue for businesses. This is one of the factors that motivate domestic and foreign investors to want to do business in imported electric motorcycles and electric bicycles in Vietnam.
Through this article, BLawyers Vietnam will provide 04 notable points on trading imported electric motorcycles and electric bicycles in Vietnam.
I. Definition of electric motorcycles and electric bicycles
The electric motorcycle means a two-wheel vehicle operated by an electric engine with power not exceeding 4 kW and a maximum speed not exceeding 50 km/h . The electric bicycle means a two-wheel bicycle that is equipped with an engine with a maximum speed not exceeding 25 km/h and still be operational with its engine off .
II. Establishing a business to trade imported electric motorbikes and electric bicycles
To carry out business in Vietnam, investors could register to establish an enterprise or invest capital in an existing enterprise by Vietnamese laws. In case of the establishment of an enterprise, investors shall obtain the Enterprise Registration Certificate. Besides, investors can choose several types of businesses for establishing such as joint-stock companies, limited liability companies, private companies, etc. Each type will have different advantages and disadvantages, so individuals/organizations must choose the proper type of enterprise based on their needs.
In addition, in case where enterprises with foreign investors that want to register for trading imported electric motorcycles and electric bicycles, investors shall carry out additional procedures to apply for the Investment Registration Certificate for an investment project in Vietnam.
Of note, if an Vietnamese individual would like to open a shop to trade in imported electric motorcycles and electric bicycles, he/ she could choose to register the establishment of a business household at the District People’s Committee.
III. Choosing business lines
Investors must choose the business lines suitable for trading electric motorcycles, electric bicycles to register with the competent authority for granting the business license. To choose the appropriate business line codes, investors can refer to the list of business line codes issued by the Government.
IV. Taxes for trading imported electric motorcycles and electric bicycles
During business operations, enterprises need to pay some taxes such as:
- License tax (license fee): this is the amount that must be paid annually or on the first time of production and business based on the charter capital stated in the Enterprise Registration Certificate/ capital investment stated in the Investment Registration Certificate (for organizations) or the annual turnover (for business households and individuals);
- Corporate income tax (20%): This is a tax based on the taxable income of the enterprise, including income from production and trading activities of goods and services and other incomes according to regulations of the laws;
- Value-added tax: The imported electric motorcycle and electric bicycle are subject to a 10% value-added tax;
- Special consumption tax: Pursuant to the law, electric motorcycles and electric bicycles are not subject to special consumption tax; and
- Import tax: In the process of trading imported electric motorcycles and electric bicycles, enterprises may have to import equipment and parts of vehicles or import electric motorcycles and electric bicycles from other countries. At that time, enterprises shall pay the import tax on goods being allowed to be exported or imported across Vietnam’s border.
In short, Vietnam is coming up with policies to reduce environmental pollution in Vietnam, which is the basis for developing of trading imported electric motorcycles and electric bicycles. Now this type of business requires some conditions for both domestic and foreign investors. However, understanding and constantly updating the provisions of the law will help investors facilitate the process of establishing and trading this business line in Vietnam.