Which entities are exempt from special consumption tax in 2024 in Vietnam?

Which entities are exempt from special consumption tax in 2024 in Vietnam?

Pursuant to Article 3 of the Special Consumption Tax Law 2008 (amended by Clause 2 Article 1 of the Amended Special Consumption Tax Law 2014), there are 05 groups of entities exempted from special consumption tax, including:

Goods specified in Clause 1 Article 2 of the Special Consumption Tax Law 2008 (amended by Clause 1 Article 1 of the Amended Special Consumption Tax Law 2014) that are not subject to special consumption tax in the following cases:

(1) Goods manufactured or processed by establishments directly for export or sold, consigned to other business establishments for export.

(2) Imported goods including:

- Humanitarian aid, non-refundable aid; gifts to government agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, people's armed units, gifts to individuals in Vietnam in accordance with the Government of Vietnam's regulations.

- Goods transited or transshipped through Vietnam's border gates or borders, goods conveyed under Government of Vietnam regulations.

- Temporary import for re-export and temporary export for re-import of goods exempted from import and export duties within the time limits prescribed by the law on import and export duties.

- Goods for use by foreign organizations and individuals with diplomatic immunity; goods carried by passengers within the duty-free luggage allowance; and goods imported for sale in duty-free shops as prescribed by law.

(3) Aircrafts and yachts used for business purposes, transporting goods, passengers, tourists, and aircrafts used for security and defense purposes.

(4) Ambulance cars; prison transport vehicles; funeral vehicles; vehicles designed with both seating and standing places for carrying 24 or more passengers; vehicles operating within amusement parks, recreation resorts, and sports grounds not registered for circulation and not participating in traffic.

(5) Goods imported from abroad into non-tariff zones, goods from the domestic market sold into non-tariff zones and used only within non-tariff zones, goods exchanged between non-tariff zones, excluding cars with fewer than 24 seats.

Which entities are exempt from special consumption tax in 2024 in Vietnam? (Image from the Internet)

Which entities are subject to special consumption tax in 2024 in Vietnam?

Pursuant to Article 2 of the Special Consumption Tax Law 2008 (amended by Clause 1 Article 1 of the Amended Special Consumption Tax Law 2014) and Article 2 of Decree 108/2015/ND-CP, there are 02 groups of entities subject to special consumption tax, including:

(1) Goods: being final products, excluding sets of components for assembling these goods.

- Cigarettes, cigars, and other products made from tobacco for smoking, inhaling, chewing, sniffing, or sucking;

- Alcohol;

- Beer;

- Automobiles with fewer than 24 seats, including vehicles designed to carry both people and goods with two or more rows of seats, with a fixed partition between the passenger compartment and the cargo compartment;

- Motorcycles with two or three wheels with an engine displacement of over 125cm^3;

- Aircrafts and yachts;

Note: The subjects of special consumption tax on aircrafts and yachts involve those used for civilian purposes.

- All types of gasoline;

- Air conditioners with a capacity of 90,000 BTU or less;

- Playing cards;

- Votive papers and votive items.

Note: The subjects of special consumption tax on votive items exclude children’s toys and teaching aids.

(2) Services:

- Discotheque business;

- Massage, karaoke business;

- Casinos; including jackpot, slot machines, and similar devices;

- Betting business;

Note: The subjects of special consumption tax on betting business include sports betting, recreational betting, and other forms of betting as prescribed by law.

- Golf business including membership sales and green fees;

- Lottery business.

In which cases is the special consumption tax refunded in Vietnam?

Pursuant to Clause 1 Article 8 of the Special Consumption Tax Law 2008, taxpayers are entitled to refunds for paid special consumption tax in the following cases:

- Temporary import for re-export;

- Goods being imported materials for the production or processing of export items;

- Tax settlement when merging, consolidating, dividing, splitting, dissolving, bankrupting, converting ownership, changing enterprises, terminating operations with overpaid taxes;

- Decisions issued by competent authorities on tax refunds as required by law, and cases of special consumption tax refunds under international treaties to which the Socialist Republic of Vietnam is a signatory.

Note: The refund of special consumption tax on temporarily imported goods for re-export and imported materials for the production or processing of export items is only applicable to goods actually exported.

The deduction of special consumption tax is detailed in Article 7 of Decree 108/2015/ND-CP (amended by Clause 3 Article 1 of Decree 14/2019/ND-CP).