Vietnam's Special Consumption Tax (SCT) is an excise tax levied on specific luxury goods, non-essential items, and services deemed detrimental to society or the environment. It is designed to regulate consumption behaviors and bolster state revenue.
Law No. 66/2025/QH15, effective 01 January 2026, marks the most comprehensive overhaul of the SCT framework since its inception in 2008. The new legislation introduces significant changes, including an adjusted tax base, a phased roadmap for tax rate hikes, and the official adoption of a hybrid calculation method.
This guide covers what SCT applies to, the updated 2026 rates, how to calculate your liability, available exemptions, and the five key changes every business needs to know.
What Is SCT and Who Must Pay It?
SCT is levied at the production or import stage — not at retail. Businesses liable for SCT are those that manufacture or import taxable goods, or provide taxable services. Regular retailers who purchase already-taxed goods do not have a separate SCT obligation.
Who is liable:
- Manufacturers of SCT-taxable goods (tobacco, alcohol, cars, air conditioners...)
- Importers of SCT-taxable goods
- Businesses providing SCT-taxable services (nightclubs, casinos, golf, lottery...)
- Note: Downstream regular retailers generally do not have a separate SCT reporting obligation, as the tax is already embedded in the purchase price at the production or import stage.
What Goods and Services Are Subject to SCT?
Under the latest framework of Law 66/2025/QH15, the SCT scope encompasses 11 categories of goods and 6 categories of services. Notably, from 01 January 2026, sugar-sweetened beverages are officially added as a new taxable category, while the taxable scope for air conditioners has been narrowed (completely exempting residential units with a capacity of 24,000 BTU or less).
SCT Rates 2026 and Roadmap to 2031
The table below summarises current rates and the phased adjustments under Law 66/2025/QH15:
|
Good / Service |
2026 Rate |
Roadmap to 2031 |
Notes |
|
Cigarettes & cigars |
75% |
+ Fixed absolute tax: VND 2,000 → 10,000/pack (2027–2031) |
Mixed method from 2027 |
|
Spirits ≥ 20° ABV |
65% |
+5%/yr → 90% by 2031 |
|
|
Spirits < 20° ABV |
35% |
Gradual → 60% by 2031 |
|
|
Beer (all types) |
65% |
+5%/yr → 90% by 2031 |
|
|
Sugar-sweetened drinks >5g/100ml |
0% |
8% from 2027; 10% from 2028 |
Exempt: Milk, 100% fruit juice, coconut water. |
|
Passenger cars ≤ 9 seats (petrol/diesel) |
35–150% |
By engine capacity |
|
|
Electric vehicles ≤ 9 seats |
3% |
11% from 01 Mar 2027 |
|
|
Hybrid vehicles |
70% of standard |
– |
70% of the rate applied to equivalent ICE vehicles. |
|
Motorcycles > 125cc |
20% |
– |
|
|
Air conditioners 24,000–90,000 BTU |
10% |
– |
Units ≤ 24,000 BTU are newly exempt from 2026. |
|
Petrol (E0 / E5 / E10) |
10% / 8% / 7% |
– |
Preferential rates for biofuels. |
|
Playing cards / Votive paper |
40% / 70% |
– |
|
|
Nightclubs / Discos |
40% |
– |
Services subject to SCT |
|
Massage / Karaoke |
30% |
– |
Services subject to SCT |
|
Casinos / Prize-winning games |
35% |
– |
Services subject to SCT |
|
Sports & entertainment betting |
30% |
– |
Services subject to SCT |
|
Golf |
20% |
– |
Services subject to SCT |
|
Lottery |
15% |
– |
Services subject to SCT |
When Can SCT Be Refunded?
- Imported goods subsequently re-exported within the permitted timeframe
- Imported raw materials used to manufacture exported products
- Overpaid SCT upon final tax settlement during dissolution or bankruptcy
- Cooperative conversion — successor cooperative inherits undeducted SCT from the predecessor
- Refunds under international treaties to which Vietnam is a signatory
Important: Goods temporarily imported that exceed the permitted period, or that are sold domestically, are no longer exempt — a stricter rule than under the 2008 Law.
SCT Exemptions
|
Exemption |
Notes |
|
Goods produced and directly exported |
Includes goods outsourced/consigned for direct export (new under Law 66/2025) |
|
Humanitarian and non-refundable aid |
|
|
Personal effects of foreign diplomats |
|
|
Goods sold in duty-free zones |
Subject to specified conditions |
|
Temporarily imported goods re-exported on time |
If deadline exceeded or goods sold domestically → SCT applies |
|
Medical/rescue helicopters |
New exemption under Law 66/2025 |
|
Special-purpose vehicles in hospitals / heritage sites |
New exemption under Law 66/2025 |
Five Key Changes Under Law 66/2025/QH15
Passed on 14 June 2025 and effective 01 January 2026, Law 66 and its guiding decrees introduce:
-
Two new taxable goods categories:
- Sugar-sweetened beverages (>5g/100ml): 0% in 2026; 8% from 2027; 10% from 2028.
- Residential air conditioners (≤ 24,000 BTU) are now fully exempt from SCT to stimulate consumer demand and support living standards.
-
Phased rate increases for alcohol, beer and tobacco:
- Spirits ≥20°: 65% (2026) rising +5%/year to 90% by 2031.
- Beer: 65% (2026) rising to 90% by 2031.
- Tobacco: 75% ad-valorem retained + new per-unit fixed tax from 2027, rising annually to 2031.
-
Hybrid calculation method:
- Combines percentage-based rate and absolute (per-unit) fixed rate — currently applicable to tobacco from 2027.
-
Expanded exemptions:
- Goods consigned or outsourced for direct export are now explicitly exempt.
- Medical/rescue helicopters and special-purpose vehicles in restricted zones are newly exempt.
-
Stricter temporary import rules:
- Temporarily imported goods that exceed the time limit or are sold domestically must pay SCT in full — the blanket exemption under the 2008 Law no longer applies.
Business Impact: Who Needs to Act Now?
Businesses in the following sectors should immediately reassess pricing strategies, supply chains, and tax declaration systems:
- Alcoholic Beverages: The continuous tax hikes through 2031 will heavily compress profit margins. Financial impact modeling must be prioritized.
- Food & Beverage (F&B): Initiate R&D reviews of product formulas. Reformulating products to remain below the 5g/100ml threshold is highly advised to avoid the impending 8%–10% tax levy.
- Automotive and EVs: Preferential SCT rates for electric vehicles are scheduled to expire at the end of February 2027 (jumping from 3% to 11%). Automakers must strategically plan their pricing and launch timelines.
- Importers & Logistics: Strengthen internal controls for tracking the timelines of temporary imports to mitigate the risk of unexpected SCT liabilities.
How Can We Help:
Ascentium Vietnam provides comprehensive SCT advisory and compliance services for foreign businesses in Vietnam. We support businesses and foreign nationals in securing full compliance with clear guidance and practical assistance at every stage:
- Impact Assessment: Measuring the financial impact of Law 66/2025/QH15 on your business model.
- Classification Advisory: Consulting on HS code classification and determining SCT taxable/exempt status.
- Compliance & Filing: Assisting in establishing declaration processes and calculating taxes payable.
- Refund Management: Preparing input tax credit and tax refund dossiers conforming to the latest regulations.
Frequently Asked Questions
The Special Consumption Tax (SCT) is an indirect tax applied to luxury items, non-essential goods (e.g., tobacco, alcohol, cars), and certain services (e.g., casinos, golf) to regulate consumption. Rates range from 3% to 150% and are applied independently of Value Added Tax (VAT).
Yes. Beverages containing more than 5g of sugar per 100ml (based on TCVN standards) will face an 8% tax from 01 January 2027, rising to 10% in 2028. However, milk, 100% fruit juices, natural coconut water, and mineral water are exempt.
From 2026, Vietnam officially incorporates a hybrid calculation method. The general formula is: SCT Payable = (Taxable Price × Percentage Rate) + (Quantity of Goods × Absolute Tax Amount). The absolute tax component will initially apply to tobacco from 2027. The taxable price is the selling price exclusive of VAT and the Environmental Protection Tax (if applicable).
In 2026, the rates are 65% (for beer and spirits ≥20° ABV) and 35% (for spirits <20° ABV). These rates will climb annually, projected to hit a ceiling of 90% (for beer and spirits ≥20° ABV) and 60% (for spirits <20° ABV) by 2031.
Businesses should refer to Decree 360/2025/ND-CP and Circular 158/2025/TT-BTC (both effective 01 January 2026). These documents provide specific regulations on taxable prices, quantity conversion rules for absolute tax, refund procedures, and documentation requirements.
