Law on Special Consumption Tax 2025 No. 66/2025/QH15

THE LAW

SPECIAL CONSUMPTION TAX

Based on the Constitution of the Socialist Republic of Vietnam;

The National Assembly enacted the Law on Special Consumption Tax.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This law stipulates the subjects liable to tax, subjects not liable to tax, taxpayers, tax calculation basis, tax refunds, tax deductions, and excise tax reductions.

Article 2. Taxable subjects

1. Goods include:

a) Tobacco products as regulated by the Law on Prevention and Control of Tobacco Harm;

b) Alcohol as regulated by the Law on Prevention and Control of Harmful Effects of Alcohol and Beer;

c) Beer as regulated by the Law on Prevention and Control of Harmful Effects of Alcohol and Beer;

d) Motor vehicles with fewer than 24 seats, including: passenger cars; four-wheeled motor vehicles for transporting people; passenger pickup trucks; double-cab cargo pickup trucks; vans with two or more rows of seats, with a fixed partition between the passenger compartment and the cargo compartment;

d) Two-wheeled and three-wheeled motorcycles with a cylinder capacity exceeding 125 cm³.³;

e) Airplanes, helicopters, gliders, and yachts;

g) All types of gasoline;

h) Air conditioners with a capacity of over 24.000 BTU up to 90.000 BTU, excluding those designed by the manufacturer solely for installation in transport vehicles including cars, train carriages, airplanes, helicopters, ships, and boats. In cases where organizations or individuals manufacture and sell, or import, separate individual components such as the outdoor or indoor unit, the goods sold or imported (outdoor and indoor units) are still subject to special consumption tax as if they were complete products (complete air conditioners);

i) Playing cards;

k) Paper offerings and other votive items, excluding votive items that are children's toys and teaching aids;

l) Soft drinks that meet the National Standard (TCVN) have a sugar content exceeding 5g/100mL

The goods referred to in this section are finished products, excluding components for assembling these goods.

2. Services include:

a) Operating a nightclub;

b) Operating massage and karaoke businesses;

c) Casino business; electronic games with prizes including jackpot machines, slot machines and similar types of machines;

d) Betting business includes sports betting, entertainment betting, and other forms of betting as prescribed by law;

d) Golf business;

e) Lottery business.

3. If it is necessary to amend or supplement the taxable subjects to suit the socio-economic context of each period, the Government shall submit the matter to the Standing Committee of the National Assembly for consideration and decision and report to the National Assembly at the nearest session.

4. The Government shall detail this Article.

Article 3. Subjects not subject to tax

1. Goods specified in Clause 1, Article 2 of this Law are not subject to special consumption tax in the following cases:

a) Goods produced, processed, or outsourced by organizations or individuals for direct export abroad, or sold or consigned to other organizations or individuals for export abroad;

b) Imported goods include:

b1) Humanitarian aid and non-refundable aid include goods imported with non-refundable aid funds approved by competent authorities, humanitarian assistance goods, and emergency relief goods to overcome the consequences of war, natural disasters, and epidemics; gifts from organizations and individuals abroad to state agencies, political organizations, socio-political organizations, socio-professional organizations, social organizations, social-professional organizations, people's armed forces units, and public service units within the limits exempt from import tax as prescribed by law on export and import taxes; gifts and presents to individuals in Vietnam within the limits exempt from import tax as prescribed by law on export and import taxes;

b2) Goods in transit as regulated by the law on trade and foreign trade management; transshipped and transshipped goods; goods imported from abroad into bonded warehouses and then exported to other countries as regulated by the law on customs;

b3) Goods temporarily imported and re-exported, and temporarily exported and re-imported, are exempt from import and export taxes within the time limits prescribed by the law on export and import taxes. If the re-export or re-import period is exceeded, or the goods are sold or their intended use is changed within the temporary import or export period, the business organization or individual must pay special consumption tax.

b4) Goods belonging to foreign organizations and individuals according to diplomatic immunity standards; goods within the duty-free baggage allowance as prescribed by law on export and import taxes; imported goods for sale at duty-free shops as prescribed by law;

b5) Goods exported abroad that have paid excise tax are returned by the foreign party upon importation;

c) Aircraft, helicopters, gliders, and yachts used for commercial purposes of transporting goods, passengers, and tourists; and aircraft, helicopters, and gliders used for security, defense, medical, rescue, emergency, firefighting, pilot training, filming, photography, surveying, and agricultural production;

d) Ambulances; prisoner transport vehicles; funeral vehicles; vehicles designed with both seating and standing areas capable of carrying 24 or more people; passenger vehicles, four-wheeled motor vehicles for transporting people that are not registered for circulation and only operate within amusement parks, entertainment venues, sports facilities, historical sites, hospitals, schools, and other specialized vehicles as prescribed by the Government.

2. If it is necessary to amend or supplement the list of tax-exempt items to suit the socio-economic context of each period, the Government shall submit it to the Standing Committee of the National Assembly for consideration and decision and report to the National Assembly at the nearest session.

3. The Government shall detail this Article.

Article 4. Taxpayers

1. Excise tax payers are organizations and individuals that produce, process, import goods, and provide services subject to excise tax.

2. In cases where an organization or individual engaged in export business purchases goods subject to excise tax from an organization or individual producing them for export abroad, but instead of exporting them, consumes them domestically, the organization or individual engaged in export business is the taxpayer of the excise tax.

Chapter II

BASIS FOR TAX CALCULATION

Article 5. Basis and method of tax calculation

1. Basis for tax calculation:

a) The basis for calculating excise tax using the percentage-based method is the taxable price of the taxable goods and services and the tax rate;

b) The basis for calculating excise tax using the absolute tax method is the quantity of taxable goods and the absolute tax rate.

2. Method of tax calculation:

In which:

Article 6. Taxable price

1. 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, as stipulated below:

a) For domestically produced goods and imported goods, the price is the selling price set by the producing organization or individual, or the importing organization or individual.

In cases where goods subject to excise tax are sold to a trading enterprise that is a parent-subsidiary or subsidiary company within the same parent company as the manufacturing or importing enterprise, or a trading enterprise that is an affiliated enterprise, the excise tax base price shall not be lower than a certain percentage (%) of the average price at which trading enterprises directly purchase from the manufacturing or importing enterprise, as stipulated by the Government;

b) For imported goods, the taxable value at the import stage is the import tax value as stipulated by the law on export and import taxes, plus the import tax, plus any additional import taxes as stipulated by the law on export and import taxes (if any). In cases where imported goods are exempt from or subject to reduced import tax or additional import tax, the special consumption tax base does not include the exempted or reduced import tax or additional import tax;

c) For goods processed under contract, the taxable price is the selling price of the goods sold by the organization or individual who commissioned the processing, or the selling price of similar or equivalent products at the same time of sale;

d) For goods produced under a business cooperation agreement between the producing organization or individual and the organization or individual using or owning the brand (trademark) of the goods or production technology, the special consumption tax base is the selling price of the organization or individual using or owning the brand or production technology. In cases where the producing organization or individual operates under a franchise license and transfers the goods to a branch or representative of a foreign company in Vietnam for sale, the special consumption tax base is the selling price of the branch or representative of the foreign company in Vietnam;

d) For goods sold on an installment or deferred payment basis, the selling price is the price of the goods if sold for cash only, excluding installment interest or deferred payment interest.

For goods subject to excise tax that are sold along with a service for renting a part or component of those goods, the excise tax base is the tax base of similar or equivalent goods sold at the time the transaction occurs;

e) For golf businesses, the price includes the membership card fee, the golf playing ticket price, golf practice fee, green maintenance fee, buggy rental fee, caddy fee, deposit (if any), and other golf-related fees paid by golfers and members to the golf business organization or individual;

g) For casino businesses, electronic games with prizes, and betting businesses, the revenue from these activities is less the amount of prize money paid to customers and any unused cash refunds (if any);

h) For nightclubs, massage parlors, and karaoke establishments, revenue is derived from business activities within the nightclub, massage parlor, or karaoke establishment, including revenue from food and beverage services and other related services;

i) For lottery businesses, the taxable value for excise tax is the revenue from the sale of tickets for all types of lottery games permitted to be operated according to the law.

2. For goods and services used for internal exchange or consumption, gifts, donations, or promotions, the special consumption tax is calculated based on the price of similar or equivalent goods and services at the time these activities occur.

3. The taxable price for excise tax on goods and services stipulated in this Article includes any additional revenue (if any) received by the business organization or individual.

4. The Government shall detail this Article.

Article 7. Time of determining excise tax

1. The time for determining excise tax on goods is the time of transferring ownership or the right to use the goods to the buyer, regardless of whether payment has been received or not.

2. The time for determining excise tax on services is the time when the service is completed or the time when the invoice for the service is issued, regardless of whether payment has been received or not.

3. The time of determining the excise tax on imported goods is the time of registering the customs declaration.

Article 8. Tax rates and absolute tax amounts

1. The excise tax rates and absolute tax amounts for goods and services are stipulated in the following Excise Tax Schedule:

SPECIAL CONSUMPTION TAX SCHEDULE

2. The absolute tax rate on cigarettes specified in point a, section 1, part I of this Tariff Schedule applies to packs of 20 cigarettes. The Government shall provide guidance on converting the absolute tax rate applicable to packs of cigarettes other than 20 cigarettes.

The absolute tax rate for cigars at point b, section 1, part I of this Tariff Schedule applies to cigars weighing 20g/cigar. The Government shall provide guidance on converting the absolute tax rate applicable to cigars weighing other than 20g/cigar.

Chapter III

TAX REFUNDS, TAX DEDUCTIONS, TAX REDUCTIONS

Article 9. Tax refunds and tax deductions

1. Taxpayers liable for excise tax are entitled to a refund of the tax paid in the following cases:

a) Goods are imported raw materials used in the production and processing of goods for export abroad.

The refund of excise tax as stipulated in this point shall only be granted for the actual quantity of goods exported abroad;

b) Tax settlement upon dissolution or bankruptcy includes any remaining uncredited excise tax.

In the case where a cooperative group is converted into a cooperative society, the cooperative society inherits any excess or uncredited excise tax paid by the cooperative group for the purpose of tax deduction and refund according to regulations;

c) Refund of excise tax in accordance with international treaties to which the Socialist Republic of Vietnam is a signatory.

2. Taxpayers who manufacture goods subject to excise tax using raw materials on which excise tax has already been paid, if they have valid documentation, are entitled to deduct the amount of tax paid on the raw materials when determining the excise tax payable at the production stage.

For taxpayers permitted to produce and blend biofuels, any uncredited excise tax on mineral gasoline used in the production and blending of biofuels (including any uncredited tax from the immediately preceding tax period) shall be offset against the excise tax payable on other goods and services arising during the period. If, after offsetting, there is still an uncredited excise tax on mineral gasoline used in the production and blending of biofuels, it shall be deducted in the next period or refunded.

The source of excise tax reimbursement comes from the excise tax revenue collected by the central government budget.

3. Taxpayers importing goods subject to excise tax are entitled to deduct the excise tax already paid at the import stage when determining the excise tax payable at the sales stage.

4. The Government shall detail this Article.

Article 10. Tax reduction

1. Taxpayers producing goods subject to excise tax who face difficulties due to natural disasters or unexpected accidents are entitled to tax reductions.

2. The tax reduction amount is determined based on the actual losses caused by natural disasters or unexpected accidents, but shall not exceed 30% of the tax payable for the year in which the damage occurred and shall not exceed the value of the damaged property after compensation (if any).

3. Procedures and documentation for tax reduction shall be carried out in accordance with the provisions of the law on tax administration.

Chapter IV

TERMS ENFORCEMENT

Article 11. Enforcement

1. This Law takes effect on January 01, 01.

2. The Law on Special Consumption Tax No. 27/2008/QH12, which has been amended and supplemented by Law No. 70/2014/QH13, Law No. 71/2014/QH13, Law No. 106/2016/QH13 and Law No. 03/2022/QH15, shall cease to be in effect from the date this Law comes into force.

This law was passed by the 6th National Assembly of the Socialist Republic of Vietnam at its 9th session on June 14, 2025.