Law No. 66/2025/QH15

LAW

ON EXCISE TAX

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Law on Excise Tax.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Law provides for taxable objects, non-taxable objects, taxpayers, bases for tax calculation, tax refund, tax deduction and reduction of excise tax.

Article 2. Taxable objects

1. Goods include:

a) Tobacco as prescribed by the Law on Prevention and Control of Tobacco Harms;

b) Liquor as prescribed by the Law on Prevention and Control of Harmful Effects of Alcohol and Beer;

c) Beer as prescribed by the Law on Prevention and Control of Harmful Effects of Alcohol and Beer;

d) Motorized vehicles of under 24 seats, including: passenger cars; four-wheeled motorized passenger vehicles; passenger pick-up cars; double-cabin pick-up cargo cars; VAN cargo cars with two or more rows of seats and a fixed partition designed between the passenger compartment and the cargo compartment;

dd) Two-wheeled motorcycles and three-wheeled motorcycles with a cylinder capacity of over 125 cm3;

e) Aircraft, helicopters, gliders and yachts;

g) Gasoline of all kinds;

h) Air conditioners with a capacity of over 24,000 BTU up to 90,000 BTU, except for those designed by the manufacturer to be installed only on means of transport, including automobiles, railway carriages, aircraft, helicopters, ships and boats. Where an organization or individual manufacturing and selling, or an organization or individual importing, separately imports each component, being the outdoor unit or the indoor unit, then the goods sold or imported (the outdoor unit, the indoor unit) shall still be subject to excise tax as in the case of a complete product (a complete air conditioner);

i) Playing cards;

k) Votive gilt paper and votive objects, excluding votive objects that are children's toys and teaching aids;

l) Soft drinks conforming to National Standards (TCVN) with a sugar content of over 5g/100mL

The goods specified in this Clause are complete products and do not include components for assembling these goods.

2. Services include:

a) Discotheque business;

b) Massage and karaoke business;

c) Casino business; prize-winning electronic games, including games played on jackpot machines, slot machines and similar machines;

d) Betting business, including sports betting, entertainment betting and other forms of betting as prescribed by law;

dd) Golf business;

e) Lottery business.

3. Where it is necessary to amend or supplement the taxable objects to suit the socio-economic context in each period, the Government shall submit the matter to the Standing Committee of the National Assembly for consideration and decision, and report to the National Assembly at its nearest session.

4. The Government shall detail this Article.

Article 3. Non-taxable objects

1. The goods specified in Clause 1, Article 2 of this Law shall not be subject to excise tax in the following cases:

a) Goods that are directly exported abroad by the organization or individual manufacturing, processing or having the goods processed under contract, or that are sold or consigned to another business organization or individual for export abroad;

b) Imported goods, including:

b1) Humanitarian aid goods and non-refundable aid goods, including goods imported with non-refundable aid funds approved by a competent authority, humanitarian relief goods, and emergency relief goods intended to overcome the consequences of war, natural disasters or epidemics; gifts from foreign organizations and individuals to State agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, people's armed forces units and public non-business units, within the quota exempt from import duty as prescribed by the law on export and import duties; presents and gifts to individuals in Vietnam, within the quota exempt from import duty as prescribed by the law on export and import duties;

b2) Goods in transit as prescribed by the law on commerce and foreign trade management; goods in cross-border transshipment or transshipment; goods imported from abroad into bonded warehouses and then exported to another country as prescribed by the law on customs;

b3) Goods temporarily imported for re-export and goods temporarily exported for re-import that are not required to pay import duty or export duty within the time limit prescribed by the law on export and import duties. Where the time limit for re-export or re-import is exceeded, or where the goods are sold or their use purpose is changed within the time limit for temporary import or temporary export, the business organization or individual shall pay excise tax;

b4) Belongings of foreign organizations and individuals under diplomatic immunity standards; goods within the standards of luggage exempt from import duty as prescribed by the law on export and import duties; goods imported for sale at duty-free shops as prescribed by law;

b5) Goods exported abroad on which excise tax has been paid and which are returned by the foreign party upon re-import;

c) Aircraft, helicopters, gliders and yachts used for the business of transporting goods, passengers and tourists, and aircraft, helicopters and gliders used for the purposes of security, national defense, ambulance service, rescue and salvage, firefighting, pilot training, filming, photography, cartographic surveying and agricultural production;

d) Ambulances; cars for transporting prisoners; hearses; cars designed with both seats and standing places for transporting 24 or more persons; passenger cars and four-wheeled motorized passenger vehicles that are not registered for circulation and operate only within the confines of amusement, entertainment and sports areas, historical relics, hospitals and schools; and other special-use cars as prescribed by the Government.

2. Where it is necessary to amend or supplement the non-taxable objects to suit the socio-economic context in each period, the Government shall submit the matter to the Standing Committee of the National Assembly for consideration and decision, and report to the National Assembly at its nearest session.

3. The Government shall detail this Article.

Article 4. Taxpayers

1. Excise taxpayers are organizations and individuals manufacturing, processing or importing goods, and providing services, subject to excise tax.

2. Where an organization or individual engaged in export business purchases goods subject to excise tax from a manufacturing organization or individual for export abroad but does not export them abroad and instead sells them domestically, the organization or individual engaged in the export business shall be the excise taxpayer.

Chapter II

BASES FOR TAX CALCULATION

Article 5. Bases and methods for tax calculation

1. Bases for tax calculation:

a) The basis for calculating excise tax applying the percentage-based tax calculation method is the taxable price of the taxable goods or services and the tax rate;

b) The basis for calculating excise tax applying the fixed-amount tax calculation method is the quantity of taxable goods and the fixed tax amount.

2. Methods for tax calculation:

In which:

Article 6. Taxable price

1. The taxable price for excise tax purposes for goods and services is the selling price or the service provision price exclusive of excise tax, exclusive of environmental protection tax and exclusive of value-added tax, determined as follows:

a) For domestically manufactured goods and imported goods, it is the price at which the manufacturing organization or individual, or the importing organization or individual, sells them.

Where goods subject to excise tax are sold to a commercial trading enterprise that has a parent company-subsidiary relationship, or a relationship among subsidiaries under the same parent company, with the manufacturing enterprise or importing enterprise, or where the commercial trading enterprise is an affiliated enterprise, the taxable price for excise tax purposes must not be lower than a percentage (%) of the average price at which the commercial trading enterprises purchasing directly from the manufacturing enterprise or importing enterprise sell them, as prescribed by the Government;

b) For imported goods, at the import stage, it is the import duty taxable value as prescribed by the law on export and import duties, plus the import duty, plus additional import duties as prescribed by the law on export and import duties (if any). Where the imported goods are exempted from or given a reduction of import duty or additional import duty, the taxable price for excise tax purposes does not include the amount of import duty or additional import duty exempted or reduced;

c) For processed goods, it is the taxable price of the goods sold by the organization or individual that ordered the processing, or the selling price of goods of the same kind or equivalent at the same time of sale;

d) For goods manufactured in the form of a business cooperation between the manufacturing organization or individual and the organization or individual that uses or owns the goods' trademark (brand) or the manufacturing technology, the taxable price for excise tax purposes is the selling price of the organization or individual that uses or owns the goods' trademark or the manufacturing technology. Where an organization or individual manufactures under a franchise license and transfers the goods to a branch or representative of the foreign company in Vietnam for consumption, the taxable price for excise tax purposes is the selling price of the branch or representative of the foreign company in Vietnam;

dd) For goods sold by installment or deferred payment, it is the price of such goods sold under the lump-sum payment method, not including the installment interest or deferred payment interest.

For goods subject to excise tax that are sold together with a service of leasing a part or a component of such goods, the taxable price for excise tax purposes is the taxable price of goods of the same kind or equivalent sold at the time of arising;

e) For golf business, it is the selling price of membership cards and golf play tickets, including golf play fees, proceeds from the sale of golf practice tickets, turf maintenance fees, buggy rental activities, caddy hire during golf play, deposits (if any) and other proceeds related to golf play paid by golf players and members to the golf business organization or individual;

g) For casino business, prize-winning electronic games and betting business, it is the revenue from these activities minus the amounts already paid out as prizes to customers and the amounts exchanged back to customers who did not use them up (if any);

h) For discotheque, massage and karaoke business, it is the revenue from the business activities within the discotheque, massage and karaoke business, including the revenue from food and beverage services and other accompanying services;

i) For lottery business, the taxable price for excise tax purposes is the revenue from the sale of tickets of the types of lottery permitted to be conducted as prescribed by law.

2. For goods and services used for exchange or internal consumption, given as gifts or presents, or used for sales promotion, it is the taxable price for excise tax purposes of goods or services of the same kind or equivalent at the time these activities arise.

3. The taxable price for excise tax purposes for the goods and services specified in this Article includes any additional amounts collected or receivable (if any) to which the business organization or individual is entitled.

4. The Government shall detail this Article.

Article 7. Time for determining excise tax

1. The time for determining excise tax on goods is the time of transferring the ownership or the right to use the goods to the buyer, regardless of whether payment has been received or not.

2. The time for determining excise tax on services is the time of completing the provision of the service or the time of issuing the invoice for the service provision, regardless of whether payment has been received or not.

3. The time for determining excise tax on imported goods is the time of registering the customs declaration.

Article 8. Tax rates and fixed tax amounts

1. The tax rates and fixed excise tax amounts for goods and services are prescribed in the following Excise Tax Schedule:

EXCISE TAX SCHEDULE

2. The fixed tax amount for cigarettes at Point a, Item 1, Part I of this Tax Schedule applies to a pack of cigarettes containing 20 cigarettes. The Government shall guide the conversion of the fixed tax amount applicable to packs of cigarettes other than 20 cigarettes.

The fixed tax amount for cigars at Point b, Item 1, Part I of this Tax Schedule applies to cigars weighing 20g/cigar. The Government shall guide the conversion of the fixed tax amount applicable to cigars weighing other than 20g/cigar.

Chapter III

TAX REFUND, TAX DEDUCTION, TAX REDUCTION

Article 9. Tax refund and tax deduction

1. An excise taxpayer is entitled to a refund of the tax paid in the following cases:

a) Goods that are raw materials imported for the manufacture or processing of goods for export abroad.

The refund of excise tax under this Point shall be granted only for the quantity of goods actually exported abroad;

b) Tax finalization upon dissolution or bankruptcy where there is an amount of excise tax not yet fully deducted.

Where a cooperative group is converted into a cooperative, the cooperative shall inherit the amount of excise tax overpaid or not yet fully deducted of the cooperative group for deduction or refund as prescribed;

c) Refund of excise tax under an international treaty to which the Socialist Republic of Vietnam is a party.

2. A taxpayer that manufactures goods subject to excise tax using raw materials on which excise tax has been paid is, where there are lawful documents, entitled to deduct the tax paid on the raw materials when determining the amount of excise tax payable at the manufacturing stage.

For a taxpayer permitted to manufacture or blend biofuel, the amount of excise tax not yet fully deducted on the fossil gasoline used as raw material for manufacturing or blending biofuel (including the amount of tax not yet fully deducted from the immediately preceding tax period) shall be offset against the amount of excise tax payable on other goods and services arising in the period. Where, after offsetting, there remains an amount of excise tax not yet fully deducted on the fossil gasoline used as raw material for manufacturing or blending biofuel, such amount shall be deducted in the following period or refunded.

The source for refunding excise tax is taken from the excise tax revenue of the central budget.

3. A taxpayer importing goods subject to excise tax is entitled to deduct the amount of excise tax paid at the import stage when determining the amount of excise tax payable at the selling stage.

4. The Government shall detail this Article.

Article 10. Tax reduction

1. A taxpayer manufacturing goods subject to excise tax that faces difficulties due to natural disasters or unexpected accidents is entitled to a tax reduction.

2. The amount of tax reduction shall be determined on the basis of the actual loss caused by the natural disaster or unexpected accident, but shall not exceed 30% of the amount of tax payable for the year in which the loss occurred and shall not exceed the value of the damaged assets after compensation (if any).

3. The procedures and dossiers for tax reduction shall comply with the law on tax administration.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 11. Effect

1. This Law takes effect from January 1, 2026.

2. The Law on Excise Tax No. 27/2008/QH12, which has been amended and supplemented under Law No. 70/2014/QH13, Law No. 71/2014/QH13, Law No. 106/2016/QH13 and Law No. 03/2022/QH15, ceases to be effective from the date this Law takes effect.

This Law was passed on June 14, 2025 by the 15th National Assembly of the Socialist Republic of Vietnam at its 9th session.