The taxable price for excise tax on goods and services is the selling price or service provision price excluding excise tax, environmental protection tax, and value-added tax.
Legal grounds
- Law on Special Consumption Tax of 2008.
- Consolidated text 02/VBHN-VPQH consolidates the Law on Special Consumption Tax 2016.
- Circular No. 130/2016/TT-BTC provides guidance on Government Decree No. 100/2016/ND-CP dated July 1, 2016, which details the implementation of the law amending and supplementing a number of articles of the Law on Value Added Tax, the Law on Special Consumption Tax, and the Law on Tax Administration, and amends a number of articles in tax circulars.
- Circular 195/2015/TT-BTC provides guidance on Decree 108/2015/ND-CP guiding the Law on Special Consumption Tax and the amended Law on Special Consumption Tax, issued by the Minister of Finance.
1. For domestic goods and imported goods
The price used for calculating excise tax is the price at which the manufacturer or importer sells the product. If the selling price of the manufacturer or importer does not conform to the normal market transaction price, the tax authorities will determine the tax amount in accordance with the provisions of the Tax Administration Law.
The price used for calculating excise tax is determined by the following formula:
Special Consumption Tax Calculation Price = [Selling price excluding value added tax – Environmental protection tax (if any)] / (1 + Special consumption tax rate)
In which: The selling price excluding value-added tax is determined according to the regulations of the law on value-added tax. Environmental protection tax is determined according to the regulations of the law on environmental protection tax.
a) In cases where an entity imports goods subject to excise tax (except for gasoline), and a entity producing goods subject to excise tax sells them through its subsidiary branches, the price used as the basis for calculating excise tax is the selling price of the subsidiary branch.
For importing establishments (excluding those importing gasoline of all types), and manufacturing establishments selling goods through agents at the price set by the importing or manufacturing establishment and only receiving a commission, the selling price used as the basis for determining the special consumption tax is the price set by the importing or manufacturing establishment before deducting the commission.
b) In cases where an importing entity imports goods subject to excise tax (excluding passenger cars with fewer than 24 seats and all types of gasoline), or a manufacturing entity producing goods subject to excise tax (excluding passenger cars with fewer than 24 seats) sells goods to commercial businesses, the price used as the basis for calculating excise tax is the selling price of the importing entity or manufacturing entity of the goods subject to excise tax, but it must not be lower than 7% of the average selling price of the commercial businesses.
In cases where the selling price of goods subject to excise tax by an importing establishment (excluding passenger cars with fewer than 24 seats and all types of gasoline) and the selling price of goods subject to excise tax by a manufacturing establishment (excluding passenger cars with fewer than 24 seats) are less than 7% lower than the average selling price of commercial businesses, the excise tax calculation price will be the price determined by the tax authority in accordance with the law on tax administration.
The commercial establishment referred to in this Point is an establishment that has no parent-subsidiary relationship, or is a subsidiary within the same parent company, with the importing establishment or manufacturing establishment, and is the first establishment in the commercial distribution chain.
c) In the case where an import facility, manufacturer, or assembler of automobiles with fewer than 24 seats sells to commercial businesses:
For businesses importing passenger cars with fewer than 24 seats, the price used as the basis for calculating excise tax is the selling price of the importing business, but it must not be lower than 105% of the cost price of the imported vehicle.
The cost of imported vehicles includes:
Taxable value of imported goods + import tax (if any) + special consumption tax (at the import stage)
In cases where the selling price of an importer of passenger cars with fewer than 24 seats is less than 105% of the import cost, the special consumption tax will be calculated based on the price determined by the tax authorities in accordance with the law on tax administration.
For manufacturers and assemblers of passenger cars with fewer than 24 seats, the price used as the basis for calculating excise tax is the manufacturer's selling price, but it must not be lower than 7% of the average selling price of commercial businesses. The average selling price of commercial businesses for comparison is the selling price of the car excluding optional equipment and parts that the commercial business installs at the customer's request. If the selling price of the manufacturer or assembler of passenger cars with fewer than 24 seats is lower than 7% of the average selling price of commercial businesses, the excise tax calculation price will be the price determined by the tax authority in accordance with the law on tax administration.
2. For imported goods at the import stage
The import tax base is determined according to the regulations of the export and import tax laws. In cases where imported goods are exempt from or subject to reduced import tax, the tax base does not include the exempted or reduced import tax amount.
Price for collectionTTDB = GipassiveImport duties + Import tax
3. For goods subject to excise tax
The price used for calculating excise tax is the price excluding value-added tax, environmental protection tax (if any), excise tax, and does not exclude the value of packaging.
For bottled beer products, if a bottle deposit is required, the manufacturer and the customer must periodically settle the bottle deposit amount quarterly. The deposit amount corresponding to the value of unrecovered bottles must be included in the revenue subject to excise tax.
4. For goods processed under contract
The excise tax base is the taxable price of goods sold by the processing facility or the selling price of similar or equivalent products at the same time of sale, excluding value-added tax, environmental protection tax (if any), and excise tax.
In cases where a processing facility sells goods to a commercial business, the special consumption tax base is determined according to the guidelines in Point b, Clause 1, Article 5 of Circular 195/2015/TT-BTC, as amended and supplemented by Circular 130/2016/TT-BTC.
5. For manufactured goods
In the form of business cooperation between a manufacturing facility and a facility that uses or owns the brand (trademark) of goods and production technology:
The excise tax base is the selling price excluding value-added tax and environmental protection tax (if any) of the establishment using or owning the brand of goods and production technology.
In cases where a manufacturing facility operates under a franchise license and transfers goods to a branch or representative of a foreign company in Vietnam for product distribution, the special consumption tax base is the selling price of the branch or representative of the foreign company in Vietnam.
In cases where these establishments sell goods to commercial businesses, the taxable price is determined according to the guidelines in Point b, Clause 1, Article 5 of Circular 195/2015/TT-BTC, amended and supplemented by Circular 130/2016/TT-BTC.
6. For goods sold on an installment or deferred payment basis.
The excise tax base is the selling price excluding value-added tax, environmental protection tax (if any), and excise tax of goods sold on a one-time payment basis, excluding installment interest and late payment interest.
7. For goods and services used for internal exchange, consumption, gifts, donations, and promotions.
The excise tax base is the excise tax base for similar or equivalent goods and services at the time these activities occur.
8. For export businesses
For businesses that export goods and purchase them subject to excise tax from manufacturers for export, but instead of exporting them, sell them domestically:
The price used for calculating excise tax is the selling price excluding excise tax, environmental protection tax (if any), and value-added tax..
Specifically defined as follows:
Special Consumption Tax Calculation Price = [Selling price excluding value added tax – Environmental protection tax (if any)] / (1 + Special consumption tax rate)
In cases where an exporting business declares a selling price, that price includes value-added tax, environmental protection tax (if applicable), and special consumption tax. This selling price is used as the basis for determining the special consumption tax.
9. Regarding services
The price used for calculating excise tax is the price at which a business provides its services, excluding value-added tax and excise tax.
It is defined as follows:
Special Consumption Tax Calculation Price = Selling Price excluding Value Added Tax / (1 + Special Consumption Tax Rate)
The service price excluding value-added tax serves as the basis for determining the special consumption tax for certain services as follows:
a) For golf businesses, revenue excluding value-added tax (VAT) includes the sale of membership cards, golf tickets, golf practice tickets, green maintenance fees, buggy rentals, caddy services, deposits (if any), and other payments made by golfers and members to the golf business. If the golf business also sells other goods and services not subject to excise tax, such as hotels, food and beverage services, merchandise, or other games, then those goods and services are not subject to excise tax.
b) For casino and electronic gaming businesses, the taxable value for special consumption tax is the revenue from casino and electronic gaming businesses minus (-) the amount of prize money paid to customers;
c) For betting businesses, the taxable value for excise tax purposes is the revenue from the sale of betting tickets after deducting prize money.
d) For businesses operating dance halls, massage parlors, and karaoke establishments, the taxable value for special consumption tax is the revenue from activities within the dance hall, massage parlor, and karaoke establishment, including revenue from food and beverage services and other accompanying services;
d) For lottery businesses, the taxable value for special consumption tax is the revenue from the sale of tickets for all types of lottery games permitted to be operated according to the law.
