New Vietnam Consumption Tax Rules Effective 2026

Vietnam's 2025 SCT Law aims to promote healthier consumer behaviors by reducing smoking, alcohol, and sugar consumption, combating smuggling, and encouraging green industries. The law taxes goods like cigarettes, tobacco, alcohol, beer, vehicles, motorcycles, aircraft, yachts, gasoline, ACs, playing cards, and sugary drinks. Businesses should refer to Vietnam Briefing's 2024 SCT article for compliance and planning.

Effective January 1, 2026, Vietnam’s 2025 SCT Law aims to promote healthier consumer behaviours by reducing smoking, alcohol, and sugar consumption, while combating smuggling and counterfeit goods. It encourages green industries, environmental protection, state revenue growth, and transparent tax management, fostering compliance.

For 2025, current SCT regulations apply. Businesses should refer to Vietnam Briefing’s 2024 SCT article for compliance and planning during this transition.

Expanded SCT Scope

The 2025 SCT Law taxes:

• Goods: Cigarettes, tobacco, alcohol, beer, vehicles (<24 seats, including passenger cars, pick-ups, vans), motorcycles (>125 cm³), aircraft, yachts, gasoline, ACs (18,000–90,000 BTU), playing cards, votive paper, and sugary drinks (>5g/100ml).
• Services: Nightclubs, massage/karaoke, casinos, betting, golf, and lotteries.

Components for these goods are not taxed.

SCT Exemptions (from 2026)

• Goods outsourced for export.
• Exported goods returned to non-taxable entities.
• Unregistered vehicles for specific use (e.g., historical sites, hospitals).
• Helicopters/gliders for ambulances, rescue, or training.

Re-import/Re-export Specifications

SCT applies if goods exceed re-export/import time limits or are sold/repurposed during temporary import/export.

New SCT Calculation

SCT Payable = (Taxable price × Tax rate) + (Quantity × Fixed tax amount, if applicable).

Updated SCT Rates/Fixed Taxes

• Tobacco: 75% + fixed rates (e.g., VND 2,000–10,000/pack, 2027–2031).
• Alcohol: ≥20°: 65–90% (2026–2031); <20°: 35–60% (2026–2031).
• Beer: 65–90% (2026–2031).
• Vehicles:
  • ≤9 seats: 35–150% (by cylinder capacity).
  • 10–24 seats: 10–15%.
  • Pick-ups/vans: 15–34% (2026–2029).
  • Hybrids: 70% of standard rate.
  • Biofuel vehicles: 50% of standard rate.
  • Electric vehicles: 1–15% (2026–2027).
  • Motorhomes: 75%.
• Motorcycles (>125 cm³): 20%.
• Aircraft/Yachts: 30%.
• Gasoline: 7–10%.
• ACs (24,000–90,000 BTU): 10%.
• Playing cards: 40%.
• Votive paper: 70%.
• Sugary drinks: 8–10% (2027–2028).
• Services: Nightclubs (40%), massage/karaoke (30%), casinos/betting (30–35%), golf (20%), lotteries (15%).

SCT Refunds/Deductions

Eligible for:

• Exported raw materials.
• Undeducted SCT upon dissolution/bankruptcy or cooperative conversion.
• International treaty-based refunds.

Business Considerations

The 2025 SCT Law enhances tax transparency and clarity, aiding compliance. Tax increase schedules allow proactive planning. However, industries like alcohol, beer, and sugary drinks face challenges, requiring impact assessments, pricing adjustments, and compliance enhancements. Long-term, businesses should invest in sustainable, healthier products to stay competitive.