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Preparing for Vietnam’s Special Consumption Tax Changes in 2026: Key Compliance Highlights
Effective from January 1, 2026, Vietnam’s revised Special Consumption Tax (SCT) framework marks a significant shift in how the country taxes health-sensitive goods, environmentally impactful products, and selected services. Anchored by the 2025 SCT Law and further clarified through two new directives, the new regime expands the scope of taxable items, refines exemptions, and introduces a dual tax calculation method, with direct implications for manufacturers, importers, and service providers operating in Vietnam.
Effective from January 1, 2026, Vietnam’s 2025 Special Consumption Tax (SCT) Law is designed to influence consumer behavior toward healthier choices, including reducing tobacco use, alcohol and beer consumption, and sugar intake, while strengthening enforcement against smuggling and counterfeit goods.
The law also seeks to support the development of green and clean industries, enhance environmental protection, increase state budget revenues, and advance tax administration reform through a more transparent, streamlined, and publicly accessible framework, thereby facilitating taxpayer compliance.
Following the approval of the revised SCT Law, Vietnam has issued Decree No. 360/2025/ND-CP (“Decree 360”) and Circular No. 158/2025/TT-BTC. Both instruments, which take effect on January 1, 2026, provide detailed guidance on implementing the new Law, clarifying the taxable objects, exemptions, and compliance procedures for affected businesses.
Expanded scope of Vietnam’s special consumption tax
Vietnam’s special consumption tax is levied on various goods and services, including cigarettes, tobacco products, luxury cars, and playing cards. The list of subject goods and products under the new law has been expanded and clarified, especially to reflect the government’s objectives in protecting the health and well-being of its citizens.
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Goods and Services Subject to Vietnam’s SCT |
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Category |
From January 1, 2026* |
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Goods |
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Services |
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(*) Goods subject to the 2025 SCT Law are final products. Components and parts used for assembling these goods are not subject to SCT. |
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More specified list of non-taxable items
Regarding non-taxable objects, Article 4 of Decree 360 offers detailed clarifications based on the provisions of the SCT Law as follows:
- New non-taxable objects include:
- Exported goods on which SCT has already been paid, but which are subsequently returned by foreign buyers upon re-importation, provided that such goods have not been used, processed, or further manufactured.
- Automobiles that are not registered for circulation, do not participate in public traffic, and are operated exclusively within historical sites, hospitals, schools, or other special-purpose vehicles as prescribed by the Government.
- Aircraft, helicopters, and gliders used for medical evacuation, rescue and relief operations, and agricultural production.
- Removal of the provision excluding the following from SCT:
- Goods imported into non-tariff zones;
- Goods sold from the domestic market into non-tariff zones and used solely within such zones; and
- Goods traded between non-tariff zones, except for passenger cars with fewer than 24 seats, which are no longer classified as non-taxable objects.
Specifications for re-import or re-export goods
While the 2008 SCT Law prescribes an overall exemption for goods temporarily imported for re-export, its 2025 edition specifies that entities will still be subject to SCT duties in the following cases:
Goods exceed the time limit for re-export or re-import; or
Goods sold or repurposed during the temporary import or temporary export period.
| Non-Taxable Objects under Vietnam’s SCT Regime, Decree 360 | ||
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Category |
Non-taxable object |
Scope and conditions |
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Exported goods |
Goods produced, processed, or processed under contract for direct export abroad |
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Temporary import/export |
Temporarily imported goods for re-export; temporarily exported goods for re-import |
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Diplomatic and duty-free goods |
Goods used by foreign organizations and individuals entitled to diplomatic immunity |
Must comply with standards under Decree 134/2016/ND-CP (as amended) |
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Goods within duty-free luggage allowances |
As prescribed by law |
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Goods imported for sale at duty-free shops |
In accordance with duty-free trading regulations |
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Returned exported goods |
Exported goods on which excise tax was paid and later returned by foreign parties |
Goods must be unused, unprocessed, and supported by valid return and tax payment documentation |
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Aircraft, vessels, and special-purpose transport |
Aircraft, helicopters, gliders, yachts used for commercial transport or special purposes (including items imported or domestically manufactured for leasing) |
SCT applies if use purpose changes |
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Special automobiles and passenger vehicles |
Ambulances, prison vans, hearses |
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Vehicles with ≥24 passenger capacity (including standing passengers) |
Must meet design specifications |
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Vehicles operating exclusively within closed areas |
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Specialized vehicles for security and defense |
As determined by competent authorities |
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New calculating method of Vietnam’s special consumption tax
The 2025 SCT Law prescribes that the actual SCT payment will be a combination of two parts:
SCT calculated using the percentage-based method, based on taxable price and SCT rate; and
SCT calculated using the absolute method, based on the quantity of taxable goods and its absolute tax rate.
Accordingly, the new SCT calculation is as follows:
SCT Payable = SCT calculated using the percentage-based method + SCT calculated using the absolute method (if applicable)
Where:
Special Consumption Tax (percentage-based method) = Taxable price of goods/services × Tax rate; and
Special Consumption Tax (absolute method) = Quantity of taxable goods × Fixed tax amount.
Updated SCT rates and fixed tax amounts
Persuant to the new SCT calculation, Vietnam has introduced an updated list of SCT rates and fixed tax amounts for subject goods and services. Accordingly, certain items will be taxed in accordance with their respective schedules.
Decree 360 also provides detailed guidance on the selling price of goods used as the basis for determining SCT liabilities in a number of specific cases.
In addition, the decree clarifies the tax base determination for cases in which manufacturers, processors, or importers of SCT-taxable goods sell products through dependent accounting units, commission-based agents who sell at fixed prices, or related-party entities.
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Special Consumption Tax Schedule under Law No. 66/2025/QH15 |
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No. |
Item |
Tax Rate |
Fixed Tax Amount (if any) |
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I |
GOODS |
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1 |
Tobacco |
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a) Cigarettes |
75% |
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b) Cigars |
75% |
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c) Shredded tobacco, pipe tobacco, and other forms |
75% |
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2 |
Alcohol (except beer) |
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a) Alcohol ≥ 20 degrees |
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— |
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b) Alcohol < 20 degrees |
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— |
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3 |
Beer |
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— |
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4 |
Passenger vehicles with fewer than 24 seats |
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a) Passenger cars and four-wheeled motor vehicles with engines, seating up to 9 passengers, and pick-up trucks designed to carry people, excluding those specified under items 4dd, 4e, and 4g of the tax schedule: |
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Cylinder capacity ≤ 1,500 cm³ |
35% |
— |
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Cylinder capacity of 1,501 cm³ – 2,000 cm³ |
40% |
— |
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Cylinder capacity of 2,001 cm³ – 2,500 cm³ |
50% |
— |
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Cylinder capacity of 2,501 cm³ – 3,000 cm³ |
60% |
— |
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Cylinder capacity of 3,001 cm³ – 4,000 cm³ |
90% |
— |
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Cylinder capacity of : 4,001 cm³ – 5,000 cm³ |
110% |
— |
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Cylinder capacity of 5,001 cm³ – 6,000 cm³ |
130% |
— |
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Cylinder capacity ≥ 6,000 cm³ |
150% |
— |
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b) Passenger vehicles with 10 to under 16 seats, excluding those specified under items 4dd, 4e, and 4g of the tax schedule. |
15% |
— |
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c) Passenger vehicles with 16 to under 24 seats, excluding those specified under items 4dd, 4e, and 4g of the tax schedule. |
10% |
— |
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d) Double-cabin pick-up trucks used for transporting goods, and VAN-type trucks with two or more rows of seats and a fixed partition between the passenger and cargo compartments, excluding those specified under items 4dd, 4e, and 4g of the tax schedule: |
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Cylinder capacity ≤ 2,500 cm³ |
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— |
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Cylinder capacity of 2,501 – 3,000 cm³ |
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— |
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Cylinder capacity ≥ 3,000 cm³ |
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— |
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dd) Hybrid vehicles (gasoline + electric or biofuel, with gasoline ≤ 70% of total energy as regulated), and automobiles running on natural gas. |
70% of the applicable rate for the same vehicle type under items 4a–4d |
— |
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e) Vehicles running entirely on biofuels |
50% of the applicable rate for the same vehicle type under items 4a–4d |
— |
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g) Electric-powered motor vehicles with fewer than 24 seats: |
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Battery-powered electric vehicles (≤ 9 seats) |
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— |
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Battery-powered electric vehicles (10 to under 16 seats) |
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— |
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Battery-powered electric vehicles (16 to under 24 seats) |
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— |
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Battery-powered electric vans and double-cabin pick-up trucks |
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— |
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Other electric vehicles (≤ 9 seats) |
15% |
— |
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Other electric vehicles (10 to under 16 seats) |
10% |
— |
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Other electric vehicles (16 to under 24 seats) |
5% |
— |
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Other electric vans and double-cabin pick-up trucks |
10% |
— |
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h) Motorhomes (regardless of engine size) |
75% |
— |
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5 |
Two-wheeled and three-wheeled motorcycles with engine capacity over 125 cm³ |
20% |
— |
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6 |
Aircraft, helicopters, gliders |
30% |
— |
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7 |
Yachts |
30% |
— |
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8 |
Gasoline |
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a) Gasoline (standard) |
10% |
— |
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b) E5 gasoline |
8% |
— |
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c) E10 gasoline |
7% |
— |
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9 |
ACs with capacity from 24,000 BTU to 90,000 BTU |
10% |
— |
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10 |
Playing cards |
40% |
— |
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11 |
Votive paper, imitation offerings |
70% |
— |
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12 |
Sugar-sweetened beverages of over 5g sugar/100ml, as per TCVN |
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— |
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II |
SERVICES |
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1 |
Nightclub business |
40% |
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2 |
Massage and karaoke services |
30% |
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3 |
Casino and prize-winning electronic games |
35% |
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4 |
Betting business (sports, horse racing, etc.) |
30% |
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5 |
Golf business (membership fees and playing fees) |
20% |
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6 |
Lottery business |
15% |
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Amendments in SCT refund and deduction
Under Article 9 of the 2025 SCT Law, the following cases qualify for a special consumption tax (SCT) refund or deduction:
- Imported raw materials are goods used for the production or processing of products for export abroad.
- Final tax settlement upon dissolution or bankruptcy: If there is an outstanding SCT that has not yet been fully deducted when settling accounts, that SCT amount is eligible for a deduction. In cases where a cooperative group converts into a cooperative, the cooperative may inherit any overpaid or undeducted SCT from the former group for a refund or deduction in accordance with regulations.
- Refund eligible under international treaties: Firms can claim SCT refunds according to international treaties to which the Socialist Republic of Vietnam is a member.
Documentation and procedural guidance
Circular 158 provides detailed guidance on the dossiers and procedures for determining non-taxable objects subject to excise tax, the taxpayer’s obligations for record-keeping and document retention, as well as the refund dossiers and procedures applicable to biofuel gasoline.
Key documentation notes include:
- Dossiers for automobiles operating within restricted areas (non-taxable excise objects): Taxpayers are required to declare relevant information on invoices or customs declarations using the mandatory syntax “”#phạm vi hẹp#” (restricted scope) in the goods description field.
- Biofuel gasoline refund dossiers: Refund applications must be prepared in accordance with the new unified application form (Form No. 01a/ĐNHT), which is used for both tax refund requests and state budget offset claims.
- Payment documentation: Eligible payment documents must be non-cash payment vouchers in accordance with Decree No. 181/2025/ND-CP, which provides detailed implementation guidance for a number of provisions of the Law on Value Added Tax.
Business consideration
The 2025 SCT Law, along with its supporting directives, plays an essential role in improving the simplicity, clarity, and transparency of Vietnam’s management system. There are several benefits in the latest changes to the SCT regime. For example, the more detailed classifications of subjects can help taxpayers better understand their tax obligations. The tax increase roadmaps are announced in advance, fostering transparency and enabling businesses to proactively adjust their production and business plans.
However, these amendments also bring about greater challenges for targeted goods and services, such as alcoholic beverages, beer, and sweetened drinks. Affected businesses should promptly accelerate their compliance efforts due to the immediate enforcement of the new SCT regulations. Focus areas include reassessing product classifications, pricing strategies, supply chains, and compliance procedures.
Special attention is necessary for newly taxable items, updated non-taxable conditions, the introduction of fixed tax components, and the more stringent documentation requirements outlined in Circular 158. Early preparation is essential to reduce tax exposure, prevent compliance issues, and align commercial strategies with Vietnam’s changing excise tax landscape in 2026.
This article was first published July 23, 2025, and was last updated January 28, 2026.
Tax planning considerations and regulations are complex and often changing, particularly in emerging markets. Dezan Shira & Associates helps companies expertly navigate Asia’s corporate, indirect, individual, international tax, and transfer pricing domains. Contact our Vietnam team to schedule a consultation: Vietnam@dezshira.com.
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