Legal Updates

Law on Special Consumption Tax No. 66/2025/QH15 takes effect on January 1, 2026.

SUMMARY OF THIS LAW

CHAPTER I – GENERAL PROVISIONS
This chapter includes:
  • Defining the scope of regulation: taxable objects, non‑taxable objects, taxpayers, tax bases, tax refund – tax credit – tax reduction mechanisms.
  • Taxable objects are divided into two groups:
  • Goods: tobacco, alcohol, beer, motor vehicles with fewer than 24 seats, motorcycles over 125cc, airplanes – helicopters – gliders – yachts, gasoline, high‑capacity air conditioners, playing cards, votive paper goods, and beverages containing more than 5g of sugar per 100ml.
  • Services: nightclubs, massage – karaoke, casinos – prize‑winning electronic games, betting services, golf, and lotteries.
  • Non‑taxable objects in special cases: export, humanitarian aid, goods in transit, temporary import–re‑export, specialized vehicles, aircraft and yachts used for transport, national defense, rescue, etc.
  • Taxpayers: organizations/individuals that manufacture or import taxable goods or provide taxable services.

Article 4. Taxpayers

1. Taxpayers subject to excise tax are organizations and individuals that manufacture, process, import goods, or provide services falling under the scope of excise taxation.

2. In cases where organizations or individuals engaged in export business purchase goods subject to excise tax from manufacturers for export but do not export them and instead sell them domestically, those organizations or individuals engaged in export business shall be the taxpayers liable for excise tax.

CHAPTER II – TAX BASES
This chapter includes:

Tax bases consist of:

  • Taxable price × tax rate (percentage‑based method)
  • Quantity of goods × absolute tax amount (specific tax method)

Taxable price is defined in detail for each type of goods/services:

  • Selling price excluding excise tax, environmental tax, and VAT.
  • Imported goods: customs value + import duty.
  • Services: revenue minus payouts (casino, betting) or total revenue (nightclubs, massage, karaoke).

Time of tax determination:

  • Goods: time of transfer of ownership.
  • Services: time of completion or invoice issuance.
  • Imports: time of customs declaration.

Excise tax schedule: detailed tax rates for each item, with multiple annual increases (2026–2031).

CHAPTER III – TAX REFUND, TAX CREDIT, TAX REDUCTION
This chapter includes:
Tax refunds in cases:
  • Imported raw materials used to produce exported goods.
  • Dissolution or bankruptcy with remaining uncredited tax.
  • According to international treaties.
Tax credits:
  • Excise tax already paid on raw materials used to produce taxable goods.
  • Mineral gasoline used to produce biofuel may be offset or refunded.
  • Excise tax paid at import stage may be credited when goods are sold domestically.
Tax reduction:
  • Applied to enterprises suffering losses due to natural disasters or unexpected accidents.
  • Maximum reduction: 30% of tax payable in the year of the loss.
CHAPTER IV – IMPLEMENTATION PROVISIONS
This chapter includes:
  • The law takes effect on January 1, 2026.
  • The 2008 Excise Tax Law and its amendments cease to be effective from this date.
  • Adoption date: June 14, 2025, by the 15th National Assembly, 9th session.