What types of goods are not subject to excise tax in Vietnam in 2025?
What types of goods are subject to excise tax in Vietnam in 2025?
Pursuant to Clause 1, Article 2 of the Law on excise tax 2008, amended by Clause 1, Article 1 of the Law on Amending the Law on excise tax 2014, the goods subject to excise tax include:
(i) Cigarettes, cigars, and other tobacco products for smoking, inhaling, chewing, sniffing, and sucking;
(ii) Alcoholic beverages;
(iii) Beer;
(iv) Automobiles with under 24 seats, including those designed for both passenger and cargo transport with more than two rows of seats and a fixed partition between the passenger and cargo compartments;
(v) Two-wheeled and three-wheeled motorcycles with engine capacities exceeding 125 cm3;
(vi) Aircraft, yachts;
(vii) Various types of gasoline;
(viii) Air conditioners with capacities of 90,000 BTU or less;
(ix) Playing cards;
(x) Joss paper and votive offerings.
What types of goods are not subject to excise tax in Vietnam in 2025?
According to the provisions of Article 3 of the Law on excise tax 2008, amended by Clause 2, Article 1 of the Law on Amending the Law on excise tax 2014, the products specified from points (i) to (x) are not subject to excise tax in the following cases:
- Goods produced or processed directly for export or sold and entrusted for export by other business facilities;
- Imported goods including:
+ Humanitarian assistance, non-repayable aid; gifts to state agencies, political organizations, political-social organizations, socio-political-professional organizations, social organizations, socio-professional organizations, people's armed forces units, and gifts to individuals in Vietnam as stipulated by the Government of Vietnam;
+ Goods in transit or sent via border crossings in Vietnam, goods transshipped as prescribed by the Government of Vietnam;
+ Goods temporarily imported for re-export, temporarily exported for re-import not subject to import or export taxes within the time limit stipulated by laws on export and import taxes;
+ Articles for personal use by foreign organizations and individuals which are entitled to diplomatic immunity; goods carried in duty-free luggage; and goods imported for sale at duty-free shops as prescribed by law;
- Aircraft, yachts used for business purposes involving the transport of goods, passengers, tourists, and aircraft used for security and national defense purposes;
- Ambulance cars; cars for transporting prisoners; hearses; cars designed with both seating and standing rooms that can accommodate 24 or more people; cars operated in entertainment, sports, and recreational areas that are not registered for road traffic circulation;
- Goods imported from abroad into non-tariff zones, goods from the domestic market sold into non-tariff zones and only used in non-tariff zones, and goods traded among non-tariff zones, excluding cars carrying less than 24 people.
What types of goods are not subject to excise tax in Vietnam in 2025? (Image from the Internet)
What is the List of goods subject to excise tax not eligible for value-added tax reduction in Vietnam in the first 6 months of 2025?
Based on the provisions of Clause 1, Article 1 of Decree 180/2024/ND-CP on value-added tax reduction policy as follows:
Value-Added Tax Reduction
1. Reduce value-added tax on groups of goods and services currently subject to a 10% tax rate, except for the following groups of goods and services:
a) Telecommunications, finance, banking, securities, insurance, real estate business, metals and products from metal casting, mining products (excluding coal extraction), refined petroleum products, chemical products. Details in Appendix I issued with this Decree.
b) Products of goods and services subject to excise tax. Details in Appendix II issued with this Decree.
c) Information technology according to the law on information technology. Details in Appendix III issued with this Decree.
d) Value-added tax reduction for each type of goods and services specified in Clause 1 of this Article shall apply uniformly at import, production, processing, and commercial stages. For the extracted coal sold (including cases of coal after screening and classification according to a closed process sold), it belongs to the subject of value-added tax reduction. Coal products in Appendix I issued with this Decree, except for the extraction sale, shall not be subject to value-added tax reduction.
General corporations, economic groups implementing the closed process before sale are also subject to value-added tax reduction for the extracted coal sold.
In the case that goods and services listed in Appendices I, II, and III issued with this Decree are either not subject to value-added tax or are subject to a 5% value-added tax per the Law on Value-Added Tax, follows the Law on Value-Added Tax and shall not be subject to a value-added tax reduction.
The following excise tax goods will not be eligible for value-added tax reduction in the first 6 months of 2025. Specifically: including:
- Cigarettes, cigars, and other tobacco products for smoking, inhaling, chewing, sniffing, and sucking;
- Alcoholic beverages;
- Beer;
- Automobiles with under 24 seats, including those designed for both passenger and cargo transport with more than two rows of seats and a fixed partition between the passenger and cargo compartments;
- Two-wheeled and three-wheeled motorcycles with engine capacities exceeding 125 cm3;
- Aircraft, yachts;
- Various types of gasoline;
- Air conditioners with capacities of 90,000 BTU or less;
- Playing cards;
- Joss paper and votive offerings.
Note: The Appendix of the List of goods and services subject to excise tax not eligible for value-added tax reduction (excluding goods and services that are not subject to excise tax) as stipulated by the Law on excise tax 2008, amended, and supplemented by the Law Amending Certain Tax Laws 2014, Law on Amending the Law on excise tax 2014, Law on Value-Added Tax, excise tax, and Tax Management Amendments 2016, and Law Amending the Law on Public Investment, Public-Private Partnership Investment, Investment, Housing, Bidding, Electricity, Enterprises, excise tax, and Civil Judgment Execution 2022.
