Law on Excise Tax, No. 66/2025/QH15

LAW

On Excise Tax^[1]

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 taxable objects, non-taxable objects, taxpayers, tax bases, tax refund, tax deduction and tax reduction with respect to excise tax.

Article 2. Taxable objects

1. Goods, including:

a/ Tobacco as specified by the Law on Prevention and Control of Tobacco Harms;

b/ Alcohol as specified by the Law on Prevention and Control of Alcohol and Beer Harms;

c/ Beer as specified by the Law on Prevention and Control of Alcohol and Beer Harms;

d/ Motor vehicles of under 24 seats, including passenger cars, motorized four-wheel passenger cars, passenger pickups, double-cabin cargo pickups; and crew vans with two-plus seat rows;

dd/ Motorized two-wheelers and motorized three-wheelers of a cylinder capacity exceeding 125cm³;

e/ Aircraft, helicopters, gliders and yachts;

g/ Petrol of all kinds;

h/ Air conditioners of a capacity exceeding 24,000 BTU but not exceeding 90,000 BTU, excluding those designed by manufacturers only for being installed on means of transport, including automobiles, railway wagons, aircraft, helicopters, ships and boats. In case the manufacturers sell or the importers import separately the condenser coils and evaporator coils of air conditioners, the sold or imported goods (condenser coils and cooling coils) are still subject to excise tax like finished products (air conditioners in complete unit);

i/ Game cards;

k/ Votive paper and votive-paper items, excluding votive-paper items that are children’s toys and teaching aids;

l/ Soft drinks classified under national standards (TCVN) with a sugar content exceeding 5g/100ml.

The goods specified in this Clause are finished products, excluding components for assembling these goods.

2. Services, including:

a/ Dancing hall business;

b/ Massage and karaoke parlor business;

c/ Casino business; prize-based video games, including games using jackpots, slot machines and the like;

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

dd/ Golf business;

e/ Lottery business.

3. When necessary to modify and supplement taxable objects to suit the socio-economic conditions in each period, the Government shall report such to the National Assembly Standing Committee for consideration and decision and reporting to the National Assembly at the upcoming 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 are not liable to excise tax if falling into the following cases:

a/ They are produced or processed by organizations and individuals or are processed by entities hired by organizations and individuals for direct export abroad or are sold or entrusted to other business organizations or individuals for export abroad.

b/ They are imported goods, including:

b1/ Goods as humanitarian aid or non-refundable aid, including also imported goods using non-refundable aid as approved by competent agencies, and goods as humanitarian assistance or urgent relief to remediate consequences of wars, disasters and epidemics; gifts offered by overseas organizations and individuals to state agencies, political organizations, socio-political organizations, socio-politico-professional organizations, social organizations, socio-professional organizations, people’s armed forces  units and non-business units within the import-duty exemption quotas as specified by the law on import duty and export duty; gifts offered to individuals in Vietnam within the import duty exemption quotas as specified by the law on import duty and export duty;

b2/ Goods in transit as specified by the commercial law and the law on foreign trade management; goods in border-gate transfer or transshipment; and goods imported from foreign countries into bonded warehouses then exported to other countries in accordance with the customs law;

b3/ Goods temporarily imported for re-export and temporarily exported for re-import, that are not liable to import duty or export duty for a certain period as specified by the law on import duty and export duty. Excise tax shall be imposed in case the time limit for re-export or re-import has expired or the goods are sold or repurposed within the time limit for temporary import or temporary export;

b4/ Belongings of foreign organizations and individuals within diplomatic immunity quotas; goods within the luggage quotas entitled to import duty exemption as specified by the law on import duty and export duty; and goods imported for sale at duty-free shops in accordance with law;

b5/ Goods exported abroad for which excise tax has been paid and which are returned by foreign partners upon import;

c/ Aircraft, helicopters, gliders and yachts used for transportation of cargoes, passengers and tourists for business purposes, and aircraft, helicopters and gliders used for the purposes of security, national defense, emergency, rescue, salvage, firefighting, pilot coaching and training, filming, photographing, survey and mapping, and agricultural production;

d/ Ambulances; prison vans; hearses; buses designed with seats and stands for carrying 24 passengers or more; passenger cars, motorized passenger four-wheelers not registered for circulation and only operating within entertainment, recreation and sports areas, historical relics, hospitals and schools, and other specialized cars as specified by the Government.

2. When necessary to modify and supplement non-taxable objects to suit the socio-economic conditions in each period, the Government shall report such to the National Assembly Standing Committee for consideration and decision and reporting to the National Assembly at the upcoming session.

3. The Government shall detail this Article.

Article 4. Taxpayers

1. Excise tax payers are organizations and individuals engaged in manufacturing, processing or importing goods and providing services liable to excise tax.

2. In case organizations or individuals engaged in export business activities purchase goods liable to excise tax from manufacturers for export abroad but actually consume such goods at home instead of exporting them abroad, they shall pay excise tax.

Chapter II

TAX BASES

Article 5. Tax bases and tax calculation methods

1. Tax bases:

a/ Bases for excise tax calculation applying the percentage-based tax method include the tax calculation price of taxable goods or services and the tax rate;

b/ Bases for excise tax calculation applying the absolute tax method include the taxable goods volume and the absolute tax rate.

2. Tax calculation methods:

Of which:

Article 6. Tax calculation prices

1. The excise tax calculation price for goods and services is the sale price or the service provision price exclusive of excise tax, environmental protection tax and value-added tax, specifically as follows:

a/ For domestically produced goods or imported goods, it is the sale price applied by the producer or importer.

In case excise tax-liable goods are sold to a trading enterprise having the parent company-subsidiary relationship or the subsidiaries share the same parent company with the producing enterprise or importing enterprise or trading enterprise being an enterprise having the related-party relationship, the excise tax calculation price must not be lower than the percentage (%) as compared with the average price at which the trading enterprises purchase the goods directly from the producing enterprise or importing enterprise under the Government’s regulations;

b/ For imported goods at the stage of importation, it is the value for import duty calculation as specified by the law on import duty and export duty plus import duty and plus top-up import duty amount as specified by the law on import duty and export duty (if any). In case imported goods are eligible for import duty or top-up import duty exemption or reduction, the price for excise tax calculation is exclusive of the exempted or reduced import duty or top-up import duty amount;

c/ For processed goods, it is the tax calculation price of goods sold by processing-ordering organizations or individuals or the sale price of products of the same or similar kind at the same time of goods sale;

d/ For goods produced in the form of business cooperation between producers and users/owners of goods brands (labels) or production technologies, the price for excise tax calculation is the sale price applied by such producers and users/owners. In case organizations or individuals produce goods under franchise licenses and transfer goods to Vietnam-based branches or representative offices of foreign companies for consumption, the price for excise tax calculation is the sale price applied by the such branches or representative offices;

dd/ For goods sold on installment payment or deferred payment, it is the sale price by the method of one-off payment for such goods, excluding the interest amount for installment payment or deferred payment.

For excise tax-liable goods sold together with the service of hiring part of such goods, the price for excise tax calculation is the tax calculation price of goods of the same or similar kind that are sold at the time such transaction arises;

e/ For golf business, it is the sale price of membership cards or the sale price of golf-playing tickets, inclusive of the golf-playing charge, the amount from the sale of golf-practicing tickets, the amount for golf court maintenance, buggy and caddy hiring, deposit (if any) and other revenue amounts related to gold playing that are paid to golf businesses by golf players or golf club members;

g/ For casino business, prize-based video games and betting business, it is the turnover from these business activities minus the amount of prizes paid to customers and the amount (if any) returned to customers;

h/ For dancing hall, massage and karaoke parlor business, it is the turnover of business activities in dancing halls, massage and karaoke business, inclusive of the turnover from food and drink services and accompanying services;

i/ For lottery business, the price for excise tax calculation is the turnover from the sale of lottery tickets of the types permitted for business in accordance with law.

2. For goods and services used for exchange or internal consumption, or as gifts or sales promotion, it is the price for excise tax calculation of the goods and services of the same or similar kind at the time such activities arise.

3. The excise tax calculation price for the goods and services specified in this Article is inclusive of additionally collected amounts and amounts permitted for collection (if any) that are payable to business organizations and individuals.

4. The Government shall detail this Article.

Article 7. Time for determination of excise tax

1. The time for determination of excise tax for goods is the time of transfer of the ownership or use rights over the goods to purchasers, regardless of whether the money has been collected or not.

2. The time for determination of excise tax for services is the time the service provision is completed or the time the service provision invoices are made, regardless of whether the money has been collected or not.

3. The time for determination of excise tax for imported goods is the time the customs declaration forms are registered.

Article 8. Tax rates and absolute tax amounts

1. Excise tax rates and absolute tax amounts for goods and services are provided in the Excise Tax Tariff below:

EXCISE TAX TARIFF

2. The absolute tax amounts for cigarettes as specified at Point a, Item 1, Part I of this Tariff are applicable to cigarette packs with 20 cigarettes per pack. The Government shall guide the conversion of absolute tax amounts applicable to cigarette packs other than those with 20 cigarettes per pack.

The absolute tax amounts for cigars as specified at Point b, Item 1, Part I of this Tariff are applicable to cigars sized 20g by weight. The Government shall guide the conversion of absolute tax amounts applicable to cigars other than those sized 20g by weight.

Chapter III

TAX REFUND, TAX DEDUCTION AND TAX REDUCTION

Article 9. Tax refund and tax deduction

1. Excise tax payers may have the paid tax amounts refunded in the following cases:

a/ The goods are materials imported for production or processing of goods for export abroad.

The excise tax refund under this Point is only applicable to the volume of goods actually exported abroad;

b/ The tax finalization statement upon dissolution or bankruptcy shows an excise tax amount not yet fully deducted.

For a cooperative group transformed into a cooperative, the cooperative shall take over the excise tax amount overpaid or not yet fully deducted from the cooperative group for proceeding with tax deduction or refund under regulations;

c/ Under treaties to which the Socialist Republic of Vietnam is a contracting party.

2. Taxpayers producing excise tax-liable goods from materials for which excise tax has been paid may, if being able to present lawful documents, have the paid tax amounts refunded for the materials upon determining the payable excise tax amounts at the production stage.

For a taxpayer allowed to produce or prepare bio-petrol, the excise tax amount not yet fully deducted for the volume of mineral petrol as materials used for production or preparation of bio-petrol (including also the tax amount not yet fully deducted in the preceding tax declaration period), shall be cleared against the payable excise tax amount for other goods and services in the period. After the clearing, any excise tax amount not yet fully deducted for the volume of mineral petrol as materials used for production or preparation of bio-petrol shall be deducted in the next period or refunded.

Sources for excise tax refund come from the central budget’s revenues from excise tax.

3. Payers of import duty for excise tax-liable goods may have the paid excise tax amounts at the import stage deducted upon determining the payable excise tax amounts at the sale stage.

4. The Government shall detail this Article.

Article 10. Tax reduction

1. Taxpayers producing excise tax-liable goods that face difficulties due to disasters or accidents will be entitled to tax reduction.

2. The tax reduction level shall be determined based on actual damage caused by disasters or accidents which, however, must not exceed 30% of the payable tax amount in the year when damage occurs and not exceed the value of the damaged assets after compensation (if any).

3. Procedures and dossiers for tax reduction must comply with the law on tax administration.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 11. Effect

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

2. Excise Tax Law No. 27/2008/QH12 which has a number of articles 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 15^th National Assembly of the Socialist Republic of Vietnam at its 9^th session.-

Chairman of the National Assembly
TRAN THANH MAN