UPDATE ON SPECIAL CONSUMPTION TAX RATES APPLICABLE AS OF JANUARY 1, 2026
Contents
- I. Legal basis
- II. How is the time for determination of special consumption tax calculated?
- III. Reduction of special consumption tax by up to 30% as of January 1, 2026
- IV. Special Consumption Tax Schedule under Law No. 66/2025/QH155 applicable as of January 1, 2026
- V. Which types of goods and services are not subject to special consumption tax?
- VI. Conclusion
- VII. About Us, Hankuk Law Firm
I. Legal basis
- The 2025 Law on Special Consumption Tax
II. How is the time for determination of special consumption tax calculated?
Pursuant to Article 7 of the 2025 Law on Special Consumption Tax, the time at which the tax obligation arises is determined as follows:
- For domestically produced goods: The time for tax determination is the moment when ownership or the right to use the goods is transferred to the purchaser, regardless of whether payment has been received.
- For services: The tax is determined at the time the provision of services is completed or at the time the invoice for service provision is issued, whichever occurs first, regardless of whether payment has been received.
- For imported goods: The time at which the tax obligation arises is when the importer registers the customs declaration in accordance with customs law.
III. Reduction of special consumption tax by up to 30% as of January 1, 2026
The National Assembly officially passed the 2025 Law on Special Consumption Tax (Law No. 66/2025/QH15) on June 14, 2025, which takes effect as of January 1, 2026.
Pursuant to Article 10 of the 2025 Law on Special Consumption Tax, the following is stipulated:
- Taxpayers producing goods subject to special consumption tax who suffer difficulties due to natural disasters or unexpected accidents shall be eligible for tax reduction.
- The tax reduction level shall be determined based on the actual losses caused by natural disasters or unexpected accidents, but shall not exceed 30% of the tax payable for the year in which the damage occurs and shall not exceed the value of the damaged assets after compensation (if any).
- The procedures and dossiers for tax reduction shall be carried out in accordance with the law on tax administration.
Accordingly, the level of special consumption tax reduction shall be determined based on the actual losses caused by natural disasters or unexpected accidents; however, the maximum reduction shall not exceed 30% of the special consumption tax payable for the year in which the damage occurs and shall not exceed the value of the damaged assets after compensation (if any).
IV. Special Consumption Tax Schedule under Law No. 66/2025/QH155 applicable as of January 1, 2026
| TT | Goods and services | Tax rates and specific tax amounts | |
| Tax rate (%) | Specific tax amount | ||
| I | Goods | ||
| 1 | Tobacco products | ||
| a) Cigarettes | 75 | From January 1, 2027: VND 2,000 per pack
From January 1, 2028: VND 4,000 per pack From January 1, 2029: VND 6,000 per pack From January 1, 2030: VND 8,000 per pack From January 1, 2031: VND 10,000 per pack |
|
| b) Cigars | 75 | From January 1, 2027: VND 20,000 per stick
From January 1, 2028: VND 40,000 per stick From January 1, 2029: VND 60,000 per stick From January 1, 2030: VND 80,000 per stick From January 1, 2031: VND 100,000 per stick |
|
| c) Shredded tobacco, pipe tobacco, or other forms of tobacco | 75 | From January 1, 2027: VND 20,000 per 100 g or 100 ml
From January 1, 2028: VND 40,000 per 100 g or 100 ml From January 1, 2029: VND 60,000 per 100 g or 100 ml From January 1, 2030: VND 80,000 per 100 g or 100 ml From January 1, 2031: VND 100,000 per 100 g or 100 ml |
|
| 2 | Alcoholic beverages | ||
| a) Alcohol with an alcohol content of 20% ABV or higher | From January 1, 2026: 65
From January 1, 2027: 70 From January 1, 2028: 75 From January 1, 2029: 80 From January 1, 2030: 85 From January 1, 2031: 90 |
||
| b) Alcohol with an alcohol content below 20% ABV | From January 1, 2026: 35
From January 1, 2027: 40 From January 1, 2028: 45 From January 1, 2029: 50 From January 1, 2030: 55 From January 1, 2031: 60 |
||
| 3 | Beer | From January 1, 2026: 65
From January 1, 2027: 70 From January 1, 2028: 75 From January 1, 2029: 80 From January 1, 2030: 85 From January 1, 2031: 90 |
|
| 4 | Vehicles with engines, with a seating capacity of fewer than 24 seats | ||
| a) Passenger automobiles and four-wheeled motor vehicles designed for passenger transport with a seating capacity of up to nine seats, and passenger pick-up vehicles, excluding those specified in items 4(d), 4(e), and 4(g) of the Tax Schedule provided for in this Clause. | |||
| – Vehicles with an engine displacement of 1,500 cm³ or less | 35 | ||
| – Vehicles with an engine displacement of over 1,500 cm³ up to 2,000 cm³ | 40 | ||
| – Vehicles with an engine displacement of over 2,000 cm³ up to 2,500 cm³ | 50 | ||
| – Vehicles with an engine displacement of over 2,500 cm³ up to 3,000 cm³ | 60 | ||
| – Vehicles with an engine displacement of over 3,000 cm³ up to 4,000 cm³ | 90 | ||
| – Vehicles with an engine displacement of over 4,000 cm³ up to 5,000 cm³ | 110 | ||
| – Vehicles with an engine displacement of over 5,000 cm³ up to 6,000 cm³ | 130 | ||
| – Vehicles with an engine displacement of over 6,000 cm³ | 150 | ||
| b) Passenger automobiles and four-wheeled motor vehicles designed for passenger transport with a seating capacity of from 10 to fewer than 16 seats, excluding those specified in items 4(d), 4(e), and 4(g) of the Tax Schedule provided for in this Clause. | 15 | ||
| c) Passenger automobiles and four-wheeled motor vehicles designed for passenger transport with a seating capacity of from 16 to fewer than 24 seats, excluding those specified in items 4(d), 4(c), and 4(g) of the Tax Schedule provided for in this Clause. | 10 | ||
| d) Double-cabin pick-up trucks for cargo transport and VAN trucks with two or more rows of seats, designed with a fixed partition separating the passenger compartment from the cargo compartment, excluding those specified in items 4(d), 4(e), and 4(g) of the Tax Schedule provided for in this Clause. | |||
| – Vehicles with an engine displacement of 2,500 cm³ or less | From January 1, 2026: 15
From January 1, 2027: 18 From January 1, 2028: 21 From January 1, 2029: 24 |
||
| – Vehicles with an engine displacement of over 2,500 cm³ up to 3,000 cm³ | From January 1, 2026: 20
From January 1, 2027: 23 From January 1, 2028: 26 From January 1, 2029: 29 |
||
| – Vehicles with an engine displacement of over 3,000 cm³ | From January 1, 2026: 25
From January 1, 2027: 28 From January 1, 2028: 31 From January 1, 2029: 34 |
||
| đ) Automobiles powered by a combination of gasoline and electric energy as prescribed by the Government; automobiles powered by a combination of gasoline and bioenergy, in which the proportion of gasoline used does not exceed 70% of the total energy used as prescribed by the Government; and automobiles powered by natural gas. | At 70% of the tax rate applicable to vehicles of the same type as specified in items 4(a), 4(b), 4(c), and 4(d) of the Tax Schedule provided for in this Clause. | ||
| e) Automobiles powered by bioenergy | At 50% of the tax rate applicable to vehicles of the same type as specified in items 4(a), 4(b), 4(c), and 4(d) of the Tax Schedule provided for in this Clause. | ||
| g) Vehicles with fewer than 24 seats powered by electricity | |||
| * Vehicles with fewer than 24 seats powered by batteries | |||
| – Passenger automobiles and four-wheeled motor vehicles with an engine and a seating capacity of up to 9 seats, and passenger pick-up trucks. | From January 1, 2026: 3
From March 1, 2027: 11 |
||
| – Passenger automobiles and four-wheeled motor vehicles with an engine and a seating capacity of from 10 to fewer than 16 seats. | From January 1, 2026: 2
From March 1, 2027: 7 |
||
| – Passenger automobiles and four-wheeled motor vehicles with an engine and a seating capacity of from 16 to fewer than 24 seats. | From January 1, 2026: 1
From March 1, 2027: 4 |
||
| – Double-cabin pick-up trucks for cargo transport and VAN trucks with two or more rows of seats, designed with a fixed partition separating the passenger compartment from the cargo compartment | From January 1, 2026: 2
From March 1, 2027: 7 |
||
| * Other motor vehicles with fewer than 24 seats powered by electricity: | |||
| – Passenger automobiles and four-wheeled motor vehicles with an engine and a seating capacity of up to 9 seats, and passenger pick-up trucks. | 15 | ||
| – Passenger automobiles and four-wheeled motor vehicles with an engine and a seating capacity of from 10 to fewer than 16 seats. | 10 | ||
| – Passenger automobiles and four-wheeled motor vehicles with an engine and a seating capacity of from 16 to fewer than 24 seats. | 5 | ||
| – Double-cabin pick-up trucks for cargo transport and VAN trucks with two or more rows of seats, designed with a fixed partition separating the passenger compartment from the cargo compartment. | 10 | ||
| h) Mobile homes (motorhomes) regardless of engine displacement. | 75 | ||
| 5 | Two-wheeled motorcycles and three-wheeled motorcycles with an engine displacement of over 125 cm³ | 20 | |
| 6 | Airplanes, helicopters, gliders | 30 | |
| 7 | Yachts | 30 | |
| 8 | Types of gasoline: | ||
| a) Gasoline | 10 | ||
| b) E5 gasoline | 8 | ||
| c) E10 gasoline | 7 | ||
| 9 | Air conditioners with a capacity of over 24,000 BTU up to 90,000 BTU | 10 | |
| 10 | Playing cards | 40 | |
| 11 | Joss paper, ceremonial paper offerings | 70 | |
| 12 | Beverages under the National Standard (TCVN) with a sugar content of over 5 g per 100 ml | From January 1, 2027: 8
From January 1, 2028: 10 |
|
| II | Services | ||
| 1 | Nightclub business | 40 | |
| 2 | Massage and karaoke services | 30 | |
| 3 | Casino and electronic games with prizes | 35 | |
| 4 | Betting business | 30 | |
| 5 | Golf business | 20 | |
| 6 | Lottery business | 15 | |
V. Which types of goods and services are not subject to special consumption tax?
Pursuant to Article 3 of the 2025 Law on Special Consumption Tax, the entities not subject to special consumption tax from 2026 include:
(1) Goods directly exported abroad by organizations or individuals through production, processing, or contract processing, or goods sold or entrusted to other organizations or individuals for the purpose of export abroad;
(2) Imported goods, including:
- Humanitarian aid and non-refundable aid goods, including imported goods funded by non-refundable aid capital approved by the competent authority; humanitarian assistance and emergency relief goods intended to address the consequences of war, natural disasters, or epidemics; gifts from organizations or individuals abroad to state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, social-professional organizations, people’s armed forces units, or public service units, within the tax-exempt quota as prescribed under the laws on export and import duties; and gifts to individuals in Vietnam, within the tax-exempt quota as prescribed under the laws on export and import duties.
- Transit goods in accordance with the provisions of the laws on commerce and foreign trade management; transshipped or transited goods; goods imported from abroad into bonded warehouses and subsequently exported to another country in accordance with the provisions of customs law;
- Temporarily imported goods for re-export and temporarily exported goods for re-import are not required to pay import or export duties within the period prescribed by the laws on export and import taxation. In cases where the period for re-export or re-import is exceeded, or the goods are released or their purpose is changed during the temporary import or temporary export period, the relevant organizations or individuals shall be liable to pay special consumption tax.
- Personal effects of foreign organizations or individuals under diplomatic exemption standards; goods within the duty-free baggage allowance in accordance with the laws on export and import duties; goods imported for sale at duty-free shops in accordance with the law;
- Exported goods that have already been subject to special consumption tax and are returned by the foreign party upon import.
(3) Airplanes, helicopters, and gliders, as well as yachts, used for commercial purposes such as transporting goods, passengers, and tourists; and airplanes, helicopters, and gliders used for purposes of national security, defense, medical evacuation, search and rescue, firefighting, pilot training, filming, photography, cartographic surveying, or agricultural production;
(4) Ambulances; vehicles for transporting prisoners; funeral vehicles; vehicles designed with both seating and standing space accommodating 24 or more persons; passenger automobiles and four-wheeled motor vehicles with an engine that are not registered for circulation and operate exclusively within amusement parks, recreational or sports areas, historical sites, hospitals, schools; and other special-purpose vehicles as prescribed by the Government.
VI. Conclusion
The 2025 Law on Special Consumption Tax was adopted by the 15th National Assembly at its 9th session and officially took effect on January 1, 2026, marking a significant improvement in the tax legal system aimed at addressing the limitations and shortcomings that arose during the implementation of the previous Special Consumption Tax Law, while ensuring consistency and harmonization with related laws. The amendments and supplements to the provisions regarding the time of tax determination, taxable objects, non-taxable objects, and applicable tax rates clearly reflect the State’s regulatory orientation toward production, business, and consumption activities in the context of new socio-economic development.
In addition to its role in regulating the consumption of goods and services that may affect public health and social order, such as tobacco, alcohol, beer, and high-sugar beverages, the 2025 Law on Special Consumption Tax also contributes to promoting sustainable development objectives through preferential tax policies for vehicles using clean and renewable energy, thereby encouraging a shift in consumption patterns toward environmentally friendly practices. At the same time, the tax reduction mechanism for taxpayers facing difficulties due to natural disasters or unexpected accidents reflects the humane and flexible nature of the tax policy, helping to support businesses in stabilizing their production and business activities.
In the context of the new regulations, which have a broad scope and directly affect the financial obligations of many organizations and individuals, taxpayers need to proactively review their production and business activities and promptly update themselves on changes in tax rates, specific tax amounts, as well as exemptions, to ensure that tax declarations and payments are made in full compliance with the law. Full and timely compliance with tax obligations not only helps mitigate legal risks but also contributes to enhancing transparency and efficiency in tax administration and strengthening a stable revenue stream for the State budget.
VII. About Us, Hankuk Law Firm
■ Hankuk Law Firm – Introduction
The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.
To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.
To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.
■ Contact us now
For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.
■ Contact Hankuk Law Firm:
| Website: http://hankuklawfirm.com/en/
FB: https://www.facebook.com/hankuk.lawfirm Tiktok: https://www.tiktok.com/@hankuklawfirm Youtube: https://www.youtube.com/@hankuklawfirm6375 Email: info@hankuklawfirm.com SĐT: 0942.339.063 |
 |