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Vietnam Updates Special Consumption Tax System: New Compliance in 2026
On June 14, 2025, Vietnam’s National Assembly passed the 2025 Law No. 66/2025/QH15 on Special Consumption Tax (SCT) to address remaining issues and resolve inconsistencies and overlaps with other regulations. The new law represents Vietnam’s latest effort to upgrade its legal framework to regulate consumption of harmful products to protect the health and well-being of its citizens.
Effective from January 1, 2026, the 2025 SCT Law aims to promote changes in Vietnam’s consumer behaviors toward healthier habits, including reducing smoking, drinking beer or alcohol, and sugar intake, while also strengthening efforts against smuggling and counterfeit goods.
At the same time, the new law is set to encourage the growth of green and clean industries, protect the environment, boost revenue for the state budget, and promote tax management reform in a straightforward, transparent, and publicly accessible manner. It is expected to create a favorable environment for taxpayers to comply with tax laws.
As the 2025 SCT Law will take effect on January 1, 2026, the SCT application for the rest of 2025 will still be governed by the current regulations. For the best tax planning and compliance during this transitional period, businesses are encouraged to read this update alongside Vietnam Briefing’s article on the rules applied until the end of 2025: Special Consumption Tax in Vietnam (2024).
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 SCT exemptions
From January 1, 2026, the SCT exemption list will be expanded to include the following goods:
- Goods directly outsourced for export to foreign countries by organizations or individuals;
- Goods exported abroad that foreign parties return upon import into non-taxable entities;
- Unregistered automobiles that do not participate in traffic and only operate within historical sites, hospitals, schools, and other specialized vehicles as prescribed by the government;
- Helicopters and gliders used for ambulances, rescue, search and rescue, and pilot training; and
- Passenger cars and four-wheeled passenger cars with engines that are not registered for circulation and only operate within historical sites, hospitals, schools, and other specialized vehicles as prescribed by the government.
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.
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.
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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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35% |
— |
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40% |
— |
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50% |
— |
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60% |
— |
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90% |
— |
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110% |
— |
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130% |
— |
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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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— |
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— |
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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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— |
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— |
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— |
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— |
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15% |
— |
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10% |
— |
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5% |
— |
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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.
Business consideration
The 2025 SCT Law, along with other recent tax updates, plays an essential role in improving the simplicity, clarity, and transparency of Vietnam’s tax 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. Firms in these industries must conduct careful impact assessments, reassess pricing strategies, and strengthen compliance systems.
In the long run, businesses should also consider long-term investments in reformulating products or shifting toward healthier, more sustainable alternatives to remain competitive in the evolving tax environment.
About Us
Vietnam Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Hanoi, Ho Chi Minh City, and Da Nang in Vietnam. Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China, Hong Kong SAR, Indonesia, Singapore, Malaysia, Mongolia, Dubai (UAE), Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland.
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