Special Consumption Tax(SCT) in Vietnam Guide 2026

Vietnam's Special Consumption Tax (SCT), also known as excise tax, applies to specific luxury goods, non-essential items and services considered harmful to society or the environment. It exists to shape consumer behaviour and raise state revenue.

Law No. 66/2025/QH15, effective 1 January 2026, is the biggest change to Vietnam's SCT framework since it was introduced in 2008. It adjusts the tax base, sets a phased roadmap for rate increases, and formally adopts 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.

Businesses liable for SCT fall into three groups:

• 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 SCT rates in Vietnam and the phased adjustments under Law 66/2025/QH15:

When Can SCT Be Refunded in Vietnam?

• 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 in Vietnam

Five Key Changes Under Law 66/2025/QH15

The revised Special Consumption Tax law in Vietnam, passed on 14 June 2025 and effective 01 January 2026, introduces the following changes through Law 66 and its guiding decrees:

1. 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.

2. 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.

3. Hybrid calculation method:

• Combines percentage-based rate and absolute (per-unit) fixed rate — currently applicable to tobacco from 2027.

4. 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.

5. 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 modelling must be prioritised.
• 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 and maintain SCT compliance in Vietnam to mitigate the risk of unexpected liabilities.

How Can We Help:

Ascentium Vietnam provides SCT advisory and compliance services for foreign businesses in Vietnam, covering every stage of the process. 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