Special Consumption Tax Law number 66/2025/QH15

LAW
SPECIAL CONSUMPTION TAX

On the basis of the Constitution of the Socialist Republic of Vietnam;

The National Assembly enacts the Special Consumption Tax Law.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Law provides for taxable objects, non-taxable objects, taxpayers, tax bases, refund of tax, deduction of tax, and reduction of special consumption tax.

Article 2. Taxable Objects

1. Goods include:

a) Tobacco as prescribed by the Law on Prevention and Control of Harmful Effects of Tobacco;

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

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

d) Motor vehicles with engines under 24 seats, including: passenger cars; four-wheeled motor vehicles; pickup trucks designed to carry passengers; pickup trucks with dual cab design; vans with at least two rows of seats and a fixed partition between the passenger compartment and cargo area;

đ) Two-wheeled motorcycles and three-wheeled motorcycles with engine displacement over 125 cm³;

e) Aircraft, helicopters, gliders, and yachts;

g) Various types of gasoline;

h) Air conditioners with cooling capacity from 24,000 BTU to 90,000 BTU, excluding those designed by manufacturers solely for installation on transportation means such as automobiles, railway carriages, aircraft, helicopters, ships, and boats. In cases where organizations or individuals produce and sell or import separately the indoor unit or outdoor unit, the goods sold or imported (indoor unit, outdoor unit) still fall within the scope of special consumption tax as complete products (complete air conditioning units);

i) Playing cards;

k) Paper offerings, paper goods, excluding paper goods that are children's toys and educational tools;

l) Soft drinks according to the National Standard (TCVN) containing more than 5g of sugar per 100ml.

Goods specified in this clause are complete products, not including spare parts for assembling these goods.

2. Services include:

a) Operating nightclubs;

b) Operating massage, karaoke services;

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

d) Operating betting services including sports betting, entertainment betting, and other forms of betting as prescribed by law;

đ) Operating golf courses;

e) Operating lotteries.

3. In cases where it is necessary to amend and supplement taxable objects to be consistent with economic and social conditions during each period, the Government shall submit 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 provide detailed regulations on this matter.

1. For imported goods exempt from special consumption tax as specified in Point a, Clause 2, Article 3 of the Special Consumption Tax Law, including:

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 subcontracted directly for export to foreign countries by organizations or individuals, or sold or entrusted to other business organizations or individuals for export to foreign countries;

b) Imported goods including:

b1) Humanitarian aid, non-reimbursable aid, including goods imported using non-reimbursable aid funds approved by competent authorities, humanitarian assistance, emergency relief goods aimed at mitigating the consequences of war, natural disasters, epidemics; gifts from organizations or individuals abroad to state agencies, political organizations, socio-political organizations, occupational socio-political organizations, social organizations, occupational social organizations, people's armed forces units, public service units within the tax-free import quota as prescribed by laws on export tax and import tax; gifts given to individuals in Vietnam within the tax-free import quota as prescribed by laws on export tax and import tax;

b2) Goods in transit as prescribed by laws on trade and foreign trade management; transshipment goods, through-transportation goods; goods imported into bonded warehouses from foreign countries and then exported to other countries as prescribed by customs laws;

b3) Temporarily imported goods for re-export and temporarily exported goods for re-import without paying export tax or import tax within the time limit prescribed by laws on export tax and import tax. In cases where the deadline for re-export or re-import is exceeded or the goods are sold or their purpose is changed during the temporary import or export period, business organizations or individuals must pay special consumption tax;

b4) Personal items of foreign organizations or individuals exempted under diplomatic standards; goods within the tax-free import quota as prescribed by laws on export tax and import tax; goods imported for sale at duty-free shops as prescribed by laws;

b5) Goods exported to foreign countries that have already paid special consumption tax but were returned upon import by the foreign side;

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

d) Ambulances; prisoner transport vehicles; funeral cars; passenger cars designed to seat and stand up to 24 people; passenger cars and four-wheeled motor vehicles with engines not registered for circulation and only run within amusement parks, sports venues, historical sites, hospitals, schools, and other specialized vehicles as prescribed by the Government.

2. In cases where it is necessary to amend and supplement non-taxable objects to be consistent with economic and social conditions during each period, the Government shall submit 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 provide detailed regulations on this Article.

Article 4. Taxpayers

1. The taxpayer of special consumption tax is an organization or individual producing, processing, importing goods, and operating services subject to special consumption tax.

2. In cases where organizations or individuals engaged in export business purchase goods subject to special consumption tax from producers for export to foreign countries but do not export them abroad and instead consume them domestically, the organization or individual engaged in export business is the taxpayer of special consumption tax.

Chapter II

BASIS FOR CALCULATING TAX

Article 5. Basis and method of calculating tax

1. Basis for calculating tax:

a) The basis for calculating special consumption tax using the percentage method is the taxable value of goods and services subject to tax and the tax rate.

b) The basis for calculating special consumption tax using the absolute method is the quantity of goods subject to tax and the fixed amount of tax.

2. Method of calculating tax:

Where:

Article 6. Taxable Value

1. The taxable value of special consumption tax for goods and services is the selling price, service supply price not including special consumption tax, environmental protection tax, and value-added tax, as specified as follows:

a) For domestically produced goods and imported goods, it is the price at which organizations and individuals producing or importing sell.

In cases where goods subject to special consumption tax are sold to trading enterprises that have parent-subsidiary relationships or affiliated companies with the production enterprise, import enterprise, or trading enterprise that has an affiliation relationship, the taxable value of special consumption tax shall not be lower than a certain percentage compared to the average price of trading enterprises purchasing directly from the production enterprise or import enterprise, as stipulated by the Government.

b) For imported goods at the import stage, it is the customs value for duty purposes according to the laws on export tax and import tax, plus import tax, plus additional import taxes as prescribed by the laws on export tax and import tax (if applicable). In cases where imported goods are exempted or reduced from import tax and additional import tax, the taxable value of special consumption tax does not include the exempted or reduced import tax and additional import tax.

c) For processed goods, it is the taxable value of the goods sold by the organization or individual commissioning processing or the selling price of similar products at the same time of sale.

d) For goods produced under joint business operations between the producing organization or individual and the organization or individual using or owning the brand (trademark) of the goods or production technology, the taxable value of special consumption tax is the selling price of the organization or individual using or owning the brand or production technology. In cases where the organization or individual produces according to a franchise license and transfers goods to branches or representatives of foreign companies in Vietnam for product sales, the taxable value of special consumption tax is the selling price of the branch or representative of the foreign company in Vietnam.

đ) For goods sold on installment or deferred payment terms, it is the selling price of the goods sold in a lump sum payment excluding the installment interest or deferred payment interest.

For goods subject to special consumption tax sold together with rental services of part or parts of such goods, the taxable value of special consumption tax is the taxable value of similar or equivalent goods sold at the time of occurrence.

e) For golf business, it is the membership card selling price, golf playing ticket price including green fees, practice session ticket prices, greens maintenance fees, vehicle rental (buggy) fees, caddy fees during play (caddy), deposit fees (if any), and other fees related to golf paid by golf players or members to the golf business organization or individual.

g) For casino business, electronic games with prizes, and betting business, it is the revenue from these activities minus the prize money paid out to customers and the change given back to customers who did not use up their funds (if any).

h) For nightclub, massage, karaoke business, it is the revenue from nightclub, massage, and karaoke business activities including food and beverage service revenue and other accompanying services revenue.

i) For lottery business, the taxable value of special consumption tax is the revenue from selling lottery tickets of various types permitted by law.

2. For goods and services used for exchange, internal consumption, gifts, promotions, the taxable value of special consumption tax is the value of similar or equivalent goods and services at the time these activities occur.

3. The taxable value of special consumption tax for goods and services specified in this Article includes additional income received (if any) enjoyed by organizations and individuals conducting business.

4. The Government shall provide detailed regulations on this matter.

Article 7. Time of Determining Special Consumption Tax

1. The time of determining special consumption tax for goods is the time when ownership or usage rights of the goods are transferred to the buyer, regardless of whether payment has been received or not.

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

3. The time of determining special consumption tax for imported goods is the time of registering the customs declaration form.

Article 8. Tax Rates and Absolute Tax Amounts

1. The tax rates and absolute tax amounts for special consumption tax on goods and services are specified in the following Special Consumption Tax Tariff:

SPECIAL CONSUMPTION TAX TARIFF

2. The specific tax rate applicable to cigarette packages containing 20 cigarettes under point a, item 1, Part I of this Tariff shall apply. The Government shall provide guidance on converting the specific tax rate applicable to cigarette packages containing other than 20 cigarettes.

The specific tax rate applicable to cigars weighing 20g per piece under point b, item I, Part I of this Tariff shall apply. The Government shall provide guidance on converting the specific tax rate applicable to cigars weighing other than 20g per piece.

Chapter III

REFUND OF TAX, DEDUCTION OF TAX, REDUCTION OF TAX

Article 9. Refund of Tax, Deduction of Tax

1. The special consumption tax payer shall be entitled to a refund of taxes already paid in the following cases:

a) Raw materials imported for the production and processing of goods for export to foreign countries.

The refund of special consumption tax under this provision shall only be implemented based on the actual quantity of goods exported to foreign countries.

b) Settlement of tax upon dissolution or bankruptcy where there remains unpaid special consumption tax that has not been fully deducted.

In the case where a cooperative organization transforms into a cooperative society, the cooperative society shall succeed to the excess special consumption tax paid or not yet deducted of the cooperative organization for deduction and refund according to regulations.

c) Refund of special consumption tax pursuant to international treaties to which the Socialist Republic of Vietnam is a member.

2. A taxpayer producing goods subject to special consumption tax using raw materials that have already been taxed with special consumption tax, if they provide valid documentation, shall be entitled to deduct the tax already paid on the raw materials when determining the amount of special consumption tax payable at the production stage.

For taxpayers permitted to produce and blend biofuel, the remaining special consumption tax not yet deducted from mineral gasoline raw materials used for producing and blending biofuel (including the amount not yet deducted from the previous tax period) may be offset against the special consumption tax payable on other goods and services generated during the same period. If, after offsetting, there remains special consumption tax not yet deducted from mineral gasoline raw materials used for producing and blending biofuel, it may be deducted in the subsequent period or refunded.

The source for refunding special consumption tax shall be derived from the central budget's revenue from special consumption tax.

3. A taxpayer importing goods subject to special consumption tax shall be entitled to deduct the special consumption tax already paid at the import stage when determining the amount of special consumption tax payable at the sale stage.

4. The Government shall provide detailed regulations on this matter.

Article 10. Supervision of Tax

1. A taxpayer producing goods subject to special consumption tax encountering difficulties due to natural disasters or unexpected accidents shall be eligible for tax reduction.

2. The level of tax reduction shall be determined based on actual losses caused by natural disasters or unexpected accidents but shall not exceed 30% of the tax payable in the year of damage and shall not exceed the value of damaged assets after compensation (if any).

3. Procedures and documents for tax reduction shall be carried out in accordance with laws governing tax administration.

Chapter IV

IMPLEMENTING PROVISIONS

Article 11. Effective Date

1. This Law shall take effect from January 1, 2026.

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

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This Law was adopted by the National Assembly of the Socialist Republic of Vietnam, the fifteenth session, ninth meeting, on June 14, 2025.