Special consumption tax deduction regulations 2024

Special consumption tax is one of the taxes in the Vietnamese tax system levied on manufactured and consumed goods. So specifically, what is a special consumption tax? Who are the subjects of the special consumption tax? All questions will be answered by S4B Vietnam in the following article.

1. What is the special consumption tax?

Special consumption tax (also known as excise tax) is an indirect tax levied on a number of luxury goods and services to balance and regulate the level of production and consumption in the market. school. The special consumption tax not only regulates the amount of production of goods but also strongly regulates the income of consumers. Thereby contributing to improving the State Budget, strengthening the management of production of taxable goods and services.

The person paying special consumption tax is the establishment that produces and sells goods, but the person who bears the tax is the final consumer.

What is the sales tax deduction? How much sales tax can I deduct?

2. Characteristics of special consumption tax

For special consumption tax, there are the following characteristics so we can identify this type of tax:

  • Subjects subject to special consumption tax are relatively narrow, with only a number of goods and services subject to tax according to State regulations.
  • One-time impact on the circulation of goods and services.
  • It is an indirect tax, levied on consumers’ income and taxed indirectly through market prices.
  • The special consumption tax rate is high.

3. Subjects subject to special consumption tax

Subjects subject to special consumption tax are specified in Article 2 of the Law on Special Consumption Tax 2008, amended in 2014 and Clause 2 of Decree 108/2015/ND-CP specifically as follows:

3.1. Special consumption tax on goods

  • Cigarettes, products made from tobacco plants used for smoking, sucking, smelling, and chewing.
  • Cards.
  • Wine.
  • Cars with 24 seats or less carrying both cargo and passengers with two or more rows of seats and a partition between the cargo and the passenger compartment.
  • Gasoline and oil of all kinds.
  • Two-wheeled and three-wheeled motorbikes with a capacity of 125cm3 or more.
  • Airplanes, yachts.
  • Votive and votive offerings do not include teaching tools or toys for children.

Note: Goods subject to special income tax are products that have completed the installation stage, excluding components.

Add more conditions for special consumption tax deduction

>>>Read more: Corporate Income Tax declaration finalization – Regulations, notes and declaration forms

3.2. Special consumption tax on services

  • Dance hall, karaoke business, massage establishment business.
  • Casino business activities, trading in prize-winning games and other similar machines.
  • Betting business activities according to the provisions of law.
  • Golf course service business including services of providing golf cards and membership cards.
  • Lottery business activities.

4. Goods and services not subject to special consumption tax

According to the provisions of Article 3 of the 2008 Law on Special Consumption Tax, amended in 2014, regulations on items, goods and services provided that are not subject to special consumption tax include:
– Goods processed directly by the production facility or sold or authorized for export by other business establishments.
– Types of imported goods include:

  • Humanitarian aid goods and gifts for competent state agencies.
  • Goods are overloaded, transported across Vietnam’s borders or border gates, or goods in transit.
  • Temporarily exported goods, temporarily produced or remanufactured goods do not have to pay export or import tax for a period of time in accordance with regulations.
  • Goods are belongings of foreign individuals and organizations according to diplomatic immunity standards, goods carried within tax exemption standards, and imported items for sale.

– Airplanes and yachts are used for the business of transporting goods, transporting luggage, and transporting passengers.
– Specialized vehicles serving the people according to state regulations include ambulances, prisoner transport vehicles, designer cars, funeral vehicles, and vehicles used at amusement parks and recreation areas.
– Goods imported and sold in non-tariff zones.

5. Who is the special consumption tax payer?

According to the provisions of the 2008 Special Consumption Law amended in 2014, the law regulates special consumption tax payers including:

  • Individuals and organizations engaged in production, import, and trading of taxable goods and services.
  • In cases where an individual or organization has business activities for an establishment that produces goods and

services for export but does not export but conducts domestic consumption, the person subject to special consumption tax is the production establishment. export goods and export services.

If your business is interested and needs consultation about Personal Income Tax, please quickly contact us, the customer care department of S4B Vietnam will support you as soon as possible.

S4B Vietnam

  • Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, BaDinh District, Hanoi
  • Tel: + 84 24 3974 4181
  • Email: service@s4b.com.vn

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