KEY UPDATES OF THE 2025 SPECIAL CONSUMPTION TAX LAW FOR ENTERPRISES IN VIETNAM

1. Objects subject to special consumption tax

Pursuant to Article 2 of the 2025 Special Consumption Tax Law, objects subject to special consumption tax include:

(i) Goods including:

• Tobacco as prescribed by the Law on Prevention and Control of Tobacco Harms;
• Alcohol as prescribed by the Law on Prevention and Control of Harmful Effects of Alcohol and Beer;
• Beer as prescribed by the Law on Prevention and Control of Harmful Effects of Alcohol and Beer;
• Motorized vehicles with under 24 seats, including: passenger cars; four-wheeled motorized passenger vehicles; pick-up passenger cars; double-cabin pick-up trucks; VAN trucks with two or more rows of seats, having a fixed partition design between the passenger compartment and the cargo compartment;
• Two-wheeled motorcycles, three-wheeled motorcycles with a cylinder capacity of over 125 $cm^3$;
• Aircraft, helicopters, gliders, and yachts;
• Gasoline of all types;
• Air conditioners with a capacity of over 24,000 BTU to 90,000 BTU, except for those designed by the manufacturer only for installation on transport vehicles including cars, railway cars, aircraft, helicopters, ships, and boats. In cases where organizations or individuals produce and sell, or organizations or individuals import separate parts as outdoor units or indoor units, the sold or imported goods (outdoor units, indoor units) are still subject to special consumption tax as for finished products (complete air conditioners);
• Playing cards;
• Votive papers, including imitation items, excluding those that are children's toys and teaching aids;
• Beverages according to National Standards (TCVN) with a sugar content of over 5g/100mL.

Goods specified in this clause are finished products, excluding components for assembling these goods.

(ii) Services including:

a) Nightclub (discotheque) business;

b) Massage and karaoke business;

c) Casino business; electronic prize-winning games including jackpot machines, slot machines, and similar types of machines;

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

e) Golf business;

f) Lottery business.

Thus, the 2025 Special Consumption Tax Law has added, expanded, and clearly defined taxable objects being goods such as: helicopters, gliders, and beverages according to National Standards (TCVN) with a content of 5g/100mL and has narrowed the scope of air conditioners with a capacity of over 24,000 BTU to 90,000 BTU. It also stipulates that in cases where it is necessary to amend or supplement taxable objects to suit the socio-economic context in each period, the Government shall submit to the National Assembly Standing Committee for consideration and decision and report to the National Assembly at the nearest session.

2. Adjustment of objects not subject to tax

Pursuant to Article 3 of the 2025 Special Consumption Tax Law, the 2025 Special Consumption Tax Law has supplemented and amended non-taxable objects as follows:

• Amended and supplemented regulations on objects not subject to SCT for: "Aircraft, helicopters, gliders, yachts used for commercial purposes of transporting goods, passengers, tourists and aircraft, helicopters, gliders used for purposes of security, national defense, ambulance, rescue, salvage, firefighting, pilot training, filming, photography, mapping, agricultural production".
• Added "passenger cars, four-wheeled motorized passenger vehicles that are not registered for circulation and only operate within the boundaries of amusement parks, entertainment areas, sports areas, historical sites, hospitals, schools, and other specialized cars" to objects not subject to SCT.
• Removed the regulation "Goods imported from abroad into non-tariff zones, goods from the domestic market sold into non-tariff zones and only used in non-tariff zones, goods traded between non-tariff zones with each other, except for passenger cars with under 24 seats" from objects not subject to tax.

And the 2025 Special Consumption Tax Law also stipulates further that in cases where it is necessary to amend or supplement non-taxable objects to suit the socio-economic context in each period, the Government shall submit to the National Assembly Standing Committee for consideration and decision and report to the National Assembly at the nearest session.

Thus, the Special Consumption Tax Law has clarified regulations and added several non-taxable objects to better suit the current socio-economic situation.

3. Tax rates and absolute tax levels

The tax rates and absolute tax levels of special consumption tax for goods and services are prescribed in the following Special Consumption Tax Tariff:

SPECIAL CONSUMPTION TAX TARIFF

No.	Goods, Services	Tax Rate (%)	Absolute Tax Level
I	Goods
1	Tobacco
	a) Cigarettes	75	- From Jan 1, 2027: 2,000 VND/pack - From Jan 1, 2028: 4,000 VND/pack - From Jan 1, 2029: 6,000 VND/pack - From Jan 1, 2030: 8,000 VND/pack - From Jan 1, 2031: 10,000 VND/pack
	b) Cigars	75	- From Jan 1, 2027: 20,000 VND/cigar - From Jan 1, 2028: 40,000 VND/cigar - From Jan 1, 2029: 60,000 VND/cigar - From Jan 1, 2030: 80,000 VND/cigar - From Jan 1, 2031: 100,000 VND/cigar
	c) Shredded tobacco, water pipe tobacco or other forms	75	- From Jan 1, 2027: 20,000 VND/100g or 100ml - From Jan 1, 2028: 40,000 VND/100g or 100ml - From Jan 1, 2029: 60,000 VND/100g or 100ml - From Jan 1, 2030: 80,000 VND/100g or 100ml - From Jan 1, 2031: 100,000 VND/100g or 100ml
2	Alcohol
	a) Alcohol with 20 degrees or more	- From Jan 1, 2026: 65 - From Jan 1, 2027: 70 - From Jan 1, 2028: 75 - From Jan 1, 2029: 80 - From Jan 1, 2030: 85 - From Jan 1, 2031: 90
	b) Alcohol under 20 degrees	- From Jan 1, 2026: 35 - From Jan 1, 2027: 40 - From Jan 1, 2028: 45 - From Jan 1, 2029: 50 - From Jan 1, 2030: 55 - From Jan 1, 2031: 60
3	Beer	- From Jan 1, 2026: 65 - From Jan 1, 2027: 70 - From Jan 1, 2028: 75 - From Jan 1, 2029: 80 - From Jan 1, 2030: 85 - From Jan 1, 2031: 90
4	Vehicles with under 24 seats
	a) Passenger cars and four-wheeled motorized passenger vehicles with 9 seats or less, pick-up passenger cars, except for types specified in items 4đ, 4e and 4g of the Tariff
	- Types with cylinder capacity of 1,500 $cm^3$ or less	35
	- Types with cylinder capacity over 1,500 $cm^3$ to 2,000 $cm^3$	40
	- Types with cylinder capacity over 2,000 $cm^3$ to 2,500 $cm^3$	50
	- Types with cylinder capacity over 2,500 $cm^3$ to 3,000 $cm^3$	60
	- Types with cylinder capacity over 3,000 $cm^3$ to 4,000 $cm^3$	90
	- Types with cylinder capacity over 4,000 $cm^3$ to 5,000 $cm^3$	110
	- Types with cylinder capacity over 5,000 $cm^3$ to 6,000 $cm^3$	130
	- Types with cylinder capacity over 6,000 $cm^3$	150
	b) Passenger cars and four-wheeled motorized passenger vehicles from 10 to under 16 seats, except for types specified in items 4đ, 4e and 4g	15
	c) Passenger cars and four-wheeled motorized passenger vehicles from 16 to under 24 seats, except for types specified in items 4đ, 4e and 4g	10
	d) Double-cabin pick-up trucks, VAN trucks with two or more rows of seats, having fixed partition design, except for types in items 4đ, 4e and 4g
	- Types with cylinder capacity of 2,500 $cm^3$ or less	- From Jan 1, 2026: 15 - From Jan 1, 2027: 18 - From Jan 1, 2028: 21 - From Jan 1, 2029: 24
	- Types with cylinder capacity over 2,500 $cm^3$ to 3,000 $cm^3$	- From Jan 1, 2026: 20 - From Jan 1, 2027: 23 - From Jan 1, 2028: 26 - From Jan 1, 2029: 29
	- Types with cylinder capacity over 3,000 $cm^3$	- From Jan 1, 2026: 25 - From Jan 1, 2027: 28 - From Jan 1, 2028: 31 - From Jan 1, 2029: 34
	đ) Cars powered by gasoline combined with electricity according to Government regulations, cars powered by gasoline combined with biofuels, where the proportion of gasoline used does not exceed 70% of energy used; cars powered by natural gas	Equal to 70% of the tax rate applied to cars of the same type specified in items 4a, 4b, 4c and 4d
	e) Cars powered by biofuels	Equal to 50% of the tax rate applied to cars of the same type specified in items 4a, 4b, 4c and 4d
	g) Electric vehicles with under 24 seats
	* Battery-powered electric vehicles with under 24 seats
	- Passenger cars and four-wheeled motorized passenger vehicles with 9 seats or less, pick-up passenger cars	- From Jan 1, 2026: 3 - From Mar 1, 2027: 11
	- Passenger cars and four-wheeled motorized passenger vehicles from 10 to under 16 seats	- From Jan 1, 2026: 2 - From Mar 1, 2027: 7
	- Passenger cars and four-wheeled motorized passenger vehicles from 16 to under 24 seats	- From Jan 1, 2026: 1 - From Mar 1, 2027: 4
	- Double-cabin pick-up trucks, VAN trucks with two or more rows of seats, having fixed partition design	- From Jan 1, 2026: 2 - From Mar 1, 2027: 7
	* Other electric vehicles with under 24 seats:
	- Passenger cars and four-wheeled motorized passenger vehicles with 9 seats or less, pick-up passenger cars	15
	- Passenger cars and four-wheeled motorized passenger vehicles from 10 to under 16 seats	10
	- Passenger cars and four-wheeled motorized passenger vehicles from 16 to under 24 seats	5
	- Double-cabin pick-up trucks, VAN trucks with two or more rows of seats, having fixed partition design	10
	h) Motorhomes regardless of cylinder capacity	75
5	Two-wheeled motorcycles, three-wheeled motorcycles with cylinder capacity over 125 $cm^3$	20
6	Aircraft, helicopters, gliders	30
7	Yachts	30
8	Gasoline of all types
	a) Gasoline	10
	b) E5 Gasoline	8
	c) E10 Gasoline	7
9	Air conditioners with capacity over 24,000 BTU to 90,000 BTU	10
10	Playing cards	40
11	Votive papers, imitation items	70
12	Beverages according to National Standards (TCVN) with sugar content over 5g/100ml	- From Jan 1, 2027: 8 - From Jan 1, 2028: 10
II	Services
1	Nightclub business	40
2	Massage, karaoke business	30
3	Casino business, electronic prize-winning games	35
4	Betting business	30
5	Golf business	20
6	Lottery business	15

4. Time of determining special consumption tax

1. The time of determining special consumption tax for goods is the time when ownership or use rights are transferred to the buyer, regardless of whether money has been collected or not.
2. The time of determining special consumption tax for services is the time when the service provision is completed or the time when the service provision invoice is issued, regardless of whether money has been collected or not.
3. The time of determining special consumption tax for imported goods is the time of customs declaration registration.

5. Conclusion

In general, the 2025 Special Consumption Tax Law has many important changes to expand the scope of adjustment, update new types of goods, and strengthen the regulating role of tax policy. The application of absolute tax on tobacco along with the adjustment of taxable and non-taxable objects is expected to contribute to limiting the consumption of products harmful to health, while ensuring consistency with current socio-economic development practices.

 

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

For more information: 

📞: +84 357 466 579

📧: contact@dblegal.vn

🌐Facebook:  DB Legal Vietnamese Fanpage or DB Legal English Fanpage 

🐦X(Twitter)

💼Linkedin

🎬Youtube