Vietnam Tax Update: New Special Consumption Tax Regulations (Effective 2026)
Overview The Government has issued Decree No. 360/2025/ND-CP, detailing the implementation of the Law on Special Consumption Tax (SCT). These regulations will officially come into effect on January 1, 2026.
1. The new decree specifies the following categories as taxable under the SCT Law:
- Vehicles: Motor vehicles with fewer than 24 seats (including passenger cars, 4-wheeled motorized passenger vehicles, pick-up trucks for passengers/cargo, and vans).
- Luxury Transport: Aircraft, helicopters, gliders, and yachts.
- Air Conditioners: Units with a capacity exceeding 24,000 BTU up to 90,000 BTU.
- Sugary Beverages: Non-alcoholic beverages compliant with National Standards containing over 5g of sugar per 100ml.
- Restricted/Entertainment Services:
- Discos, karaoke parlors, and massage services.
- Casinos and electronic gaming with prizes (jackpot/slot machines).
- Betting businesses (sports, entertainment) and lotteries.
- Golf businesses: Including driving ranges and the sale of golf memberships or green fees.
2. The following categories are exempt from Special Consumption Tax:
- Exports & Temporary Trade:
- Goods directly exported, sold for export, or entrusted for export.
- Goods under temporary import for re-export (within statutory time limits).
- Returned export goods that remain unused/unprocessed.
- Special Status Goods:
- Diplomatic/consular goods and personal effects within duty-free allowances.
- Goods sold at duty-free shops.
- Special Purpose Transport:
- Aircraft and yachts used for commercial transport (cargo/passengers/tourism) or for security, defense, medical/rescue, filming, or agricultural purposes.
- Specialized Vehicles: Ambulances, hearses, prisoner transport vehicles, buses designed for standing/sitting (24+ people), and internal transit vehicles (used exclusively within parks, hospitals, etc., without public road registration).
