Vietnam: What are the objects subject to excise tax in 2024?
What are the objects subject to excise tax in 2024 in Vietnam?
Under Article 2 of the Law on excise tax 2008 and Article 2 of Decree 108/2015/ND-CP, the objects subject to excise tax include:
(1) Goods subject to excise tax:
- Cigarettes, cigars, and other tobacco products used for smoking, inhaling, chewing, sniffing, or sucking;
- Alcohol;
- Beer;
- Passenger cars with fewer than 24 seats, including those designed for both passenger and cargo transport with two or more rows of seats, with a fixed partition between the passenger and cargo compartments;
- Motorbikes with engine capacity above 125cm³, including two-wheeled and three-wheeled bikes;
- Aircraft and yachts (used for civil purposes);
- Various types of gasoline;
- Air conditioners with a capacity of 90,000 BTU or less;
- Playing cards;
- Joss paper and votive objects (excluding children’s toys and educational equipment).
Note: Goods subject to excise tax must be complete products and not include components for assembling such goods.
(2) Services subject to excise tax:
- Nightclub businesses;
- Massage, karaoke businesses;
- Casino businesses; prize-winning electronic games, including jackpot machines, slot machines, and similar types of machines;
- Betting businesses (including sports betting, entertainment betting, and other forms of betting as prescribed by law);
- Golf businesses, including selling membership cards and golf playing tickets;
- Lottery businesses.
What are the objects subject to excise tax in 2024 in Vietnam? (Image from Internet)
What are the objects exempt from excise tax in Vietnam
Under Article 3 of the Law on excise tax 2008 and Article 3 of Decree 108/2015/ND-CP, the goods specified above are not subject to excise tax in the following cases:
(1) Goods directly produced or processed for export by production facilities or sold or entrusted to other business objects for export;
(2) Imported goods including:
- Humanitarian aid, non-refundable aid; gifts to state agencies, political organizations, socio-political organizations, socio-professional political organizations, social organizations, socio-professional organizations, armed forces units, gifts to individuals in Vietnam as per the stipulation of the Government of Vietnam, including:
+ Humanitarian aid, non-refundable aid, including goods imported with non-refundable aid funds approved by competent authorities, humanitarian assistance, emergency relief to mitigate the consequences of wars, natural disasters, diseases;
+ Gifts from foreign organizations or individuals to state agencies, political organizations, socio-political organizations, socio-professional political organizations, social organizations, socio-professional organizations, armed forces units;
+ Gifts to individuals in Vietnam within the limits set by law.
- Goods in transit or borrowed through Vietnamese customs gates or borders, goods temporarily imported for re-export or temporarily exported for re-import without paying import or export tax within the time set by the law on import and export tax;
- Goods for foreign organizations or individuals entitled to diplomatic immunity standards; goods carried by individuals within duty-free luggage limits; goods imported for duty-free sales as stipulated by law;
(3) Aircraft and yachts used for the business of transporting goods, passengers, and tourists;
(4) Ambulances; prisoner transport vehicles; funeral vehicles; passenger vehicles designed with standing places and seats accommodating 24 or more people; vehicles operating in amusement parks, sports grounds that are not registered for road use and do not participate in traffic;
(5) Goods imported from abroad into duty-free zones, goods sold from domestic markets into duty-free zones, and used only within duty-free zones, and goods traded between duty-free zones, excluding passenger cars with fewer than 24 seats.
Who is responsible for paying excise tax in Vietnam?
According to Article 4 of the Law on excise tax 2008, those responsible for paying excise tax are stipulated as follows:
- Excise taxpayers include producers and importers of goods and providers of services which are subject to excise tax.
- Exporters that purchase excise tax-liable goods from producers for export and do not export but sell them domestically shall pay excise tax.
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