What Subjects Are Exempt from Special Consumption Tax?

To be specific, according to the provisions of Article 3 of the Special Consumption Tax Law 2008 and Clause 2, Article 1 of the amended Special Consumption Tax Law 2014, goods specified in Clause 1, Article 2 of the Special Consumption Tax Law 2008 are not subject to special consumption tax in the following cases:

First, goods produced or processed by establishments for direct export or sold, entrusted to other businesses for export;

Second, imported goods include:

- Humanitarian aid goods, non-refundable aid; gifts for government agencies, political organizations, politico-social organizations, socio-professional organizations, social organizations, socio-professional organizations, people's armed units, gifts for individuals in Vietnam as per the Government of Vietnam's regulations;

- Goods in transit or borrowed for transit through Vietnam's border gates, border lines, goods transshipped as per the Government of Vietnam's regulations;- Temporarily imported goods for re-export and temporarily exported goods for re-import that are not subject to import and export taxes within the time limits stipulated by the law on export and import taxes;- Items of foreign organizations and individuals according to diplomatic immunity standards; goods carried as personal luggage within the duty-free allowance; imported goods for sale in duty-free zones as stipulated by law;

Third, aircraft and yachts used for the purpose of business transportation of goods, passengers, tourists and aircraft used for security and defense purposes;

Fourth, ambulances; prison vans; hearses; vehicles designed to carry both seated and standing passengers with a capacity of 24 passengers or more; vehicles operated within amusement parks, entertainment zones, and sports facilities that are not registered for circulation and do not participate in traffic;

Fifth, goods imported from abroad into bonded zones, goods sold domestically into bonded zones and only used within bonded zones, goods traded between bonded zones, except for passenger cars with fewer than 24 seats.

See also Special Consumption Tax Law 2008 effective from April 1, 2009, and amended Special Consumption Tax Law 2014 effective from January 1, 2016.

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