Bản Sao Của Tax - Chapter 4- Excise Tax 2022

CHAPTER 4: EXCISE TAX
(SPECIAL CONSUMPTION TAX)
TS. Nguyễn Thu Hằng

CONTENT
01 DEFINITION
02
02 The effect of excise tax
03 Basic components
03
04 Tax refund – tax deduction

I. DEFINITION
Excise tax (SCT) is an

indirect tax on goods
and services that are
non-essential to the
needs of people, or
which are in need of
being economically
justified
•Luxurious goods and
services
•Being harm to environment
or people’s health
•Non-essential needs

I. DEFINITION
Characteristics
One-stage consumption tax, An indirect tax

imposed one stage, either at
production or importation of
goods and supply of services
Tax rates are high
Scope of SCT is narrow
Guide to consumption
Same and different

from VAT?

I. DEFINITION
2. The process of birth and application of SCT in Vietnam
Issuance of goods tax
.For non-essential goods

1951
→ State For goods that
encourage production → Subjects subject to
State does not collect taxes reduced goods tax
or collects low taxes. Taxes Applies to about 20 items
1989
high Including taxes on export,
.Goods tax: levied on 50 import, and
commercial goods
non-
items
Promulgating excise tax law
instead of goods tax 1990
• Apply 6 items: cigarettes,
alcohol, beer, firecrackers, Amendment of excise
playing cards, votive paper tax law for the first time
1993 Type in 4 items:
• One-time tax collection at
cigarettes, alcohol, beer,
the production stage, not at firecrackers
the import stage Tax rate increase

2. The process of birth and application of SCT in Viet Nam
The 2nd Amendment of SCT

Law → Take effect on Amendment of the
January 1, 1996 excise tax law for the
Apply: 6 groups of products 1995 3rd time → Adoption of
(additional 2 groups: imported a new SCT Law →
cars, gasoline of all kinds) Effective on January 1,
Separate excise tax from import 1999
tax to reduce import tax; Protect Applicable: 8 groups of
domestic production; 1998 products: alcohol, beer,
Create conditions for Vietnam cigarette,air
to participate in international conditioners, playing
agreements and commitments cards, votive papers,
in international trade gasoline of all kinds,
imported cars; 4 service
1st Amendment and 2003 groups
Supplement → Effective
1/1/2004 2nd Amendment and
2005 Supplement →
Effective January 1,
2006
The National Assembly 2008 Apply: 8 groups of
approved the Law on SCT No. products and 5 groups
27/2008 (effective April 1, of services
2009).
2. The process of birth and application of SCT in Viet Nam
The Law No. 70/2014/QH13 2014

amending and supplementing the
Law on Special Consumption Tax
2014 The Law No. 71/2014/QH13

amending and supplementing
Laws on Taxation
The Law No. 106/2016/QH13

amending and supplementing The Law No 03/2022/QH15
2016 amending the Law on Public
the Law on Value Added Tax,
Investment, the Law on
Law on Special Consumption Investment in the form of
Tax and Law on Tax PPP, the Law on Investment,
Administration
2021 the Law on Housing, the Law
on Bidding, the Law on
Electricity, the Law on
Enterprises, the Law on
Special Consumption Tax
and the Law on Judgment
Execution civil 2022

CURRENT LEGAL SYSTEM AND LEGAL DOCUMENTS
REGULATIONS ON SCT IN VIETNAM
• SCT Law No. 27/2008/QH12 dated November 14, 2008 (effective on April 1, 2009)
• Decree No. 26/2009/ND-CP dated March 16, 2009
• Decree 113/2011/ND-CP TT 05/2012/TT-BTC
• Amended Law No. 70/2014/QH13 dated November 26, 2014

• Amended Law No. 71/2014/QH13 dated November 26, 2014
• Amended Law No. 106/2016/QH13 dated April 6, 2016
• Amended Law No 03/2022/QH15 dated 11 Jan 2022
• Decree No. 108/2015/ND-CP dated Oct 28, 2015, amended by Decree No. 14/2019/NĐ-CP
• Circular No. 195/2015/TT-BTC dated 24/11/2015, amended by Cir No. 20/2017/TT-BTC
Decree No. 100/2016/ND-CP dated July 1, 2016
Circular 130/2016/TT-BTC dated 12/8/2016
• Consolidation document 02/VBHN-VPQH dated April 28, 2016
• Find more on https://vanban.vcci.com.vn/thue-tieu-thu-dac-biet

II. Effects of sct
Add Your Text

1. Guidelines for production and consumption
Add Your2. Text

Social income regulation
3. Contributing to the management, production

Add and
Your Text of some special products
business

II. EFFECTS OF SCT
1. Guidelines for social production and consumption
For manufacturers and importers

• High tax rate: 15% - 75%
• No tax exemption (except for
special cases) → Must consider
when deciding to invest or
import
For consumers
SCT is an indirect tax → Add to Q: Is the application of excise
the product price → High price → tax on air conditioners and
Must be considered when draft beer reasonable?
consuming products subject to
SCT

2. Social income regulation
• Subjects subject to excise tax:
- Goods and services are not really necessary for the daily
needs of consumers
- Or the excessive consumption of goods and services can
cause bad and negative effects on consumers and society.
. Consumers of goods and services subject to excise tax → are
often a part of the population with relatively high incomes
.Through the regulation of high excise tax rates, the state
mobilizes the income of this population into the state budget →
performs the functions of the state.
Economic development
High tax State

Make a job
rate budget
Investing in health and education

II. EFFECTS OF SCT
3. Strengthen production and business management
for special goods and services
– Use a separate tax → There are laws and legal documents

regulating and regulating
– Management will be more focused and effective
– Distinguish special goods from other common goods

III. Basic components of excise tax
01 Taxpayers
02 Taxable object
03 Tax bases

III. Basic contents of excise tax
1. Taxpayers
• Consolidation document 02/VBHN-VPQH dated April 28, 2016:
Excise taxpayers include producers and importers of goods and
providers of services which are subject to excise tax.
Commodity production
Goods and services

Business services SCT
subject to excise tax
Imports of goods
Q: Case of entering
entrustment?

1. Taxpayers
• Note: Exporters that purchase excise tax-liable goods from

producers for export and do not export but sell them domestically
shall pay excise tax.

2. Taxable objects
GOODS SERVICES
1. Cigarettes, cigars and other tobacco preparations 1. Dance halls;

used for smoking, inhaling, chewing, sniffing or 2. Massage parlors and karaoke bars;
keeping in mouth; 3. Casinos; prize-winning video games,
2. Liquor; including jackpot and slot games and
3. Beer; games on similar machines;
4. Under-24 seat cars, including cars for both 4. Betting;
passenger and cargo transportation with two or 5. Golf business, including the sale of
more rows of seats and fixed partitions between membership cards and golf playing
passenger holds and cargo holds; tickets;
5. Two- and three-wheeled motorcycles of a cylinder 6. Lottery business.
capacity of over 125 cm3;
6. Aircrafts;
7. Yachts;
8. Gasoline of all kinds, naphtha, reformate
components and other components for mixing
gasoline;
9. Air-conditioners of 90,000 BTU or less;
10. Playing cards;
11. Votive gilt papers and votive objects.

Non-taxable objects
1. Goods directly exported by manufacturing or processing establishments or

sold or entrusted to other business establishments for export;
2. Imported goods, including :

a) Goods of humanitarian aid, non-refundable aid; gifts for state agencies,
political organizations, socio-political organizations, socio-political-
professional organizations, social organizations, socio-professional
organizations, people's armed forces units , gifts, gifts for individuals in
Vietnam according to the levels prescribed by the Government;
b) Goods transported in transit or borrowed by road through Vietnam's border
gates or borders, goods transshipped according to the Government's
regulations;
c) Goods temporarily imported for re-export and temporarily exported or re-
imported are not subject to import tax or export tax within the time limit
prescribed by the law on export tax and import tax.;
d) Items of foreign organizations and individuals according to diplomatic
immunity standards; carry-on goods in the duty-free baggage allowance;
goods imported for sale tax-free in accordance with the law;

Non-taxable objects
3. Aircraft, yachts used for business purposes transporting goods, passengers,

tourists; Aircraft used for the following purposes: pesticide spraying, fire
fighting, filming, photography, mapping, security and defense (Decree
14/2019).
4. Ambulance cars; cars carrying prisoners; funeral cars; cars designed with
both seats and standing seats can carry 24 people or more; Cars running in
amusement parks, entertainment and sports areas are not registered for
circulation and do not participate in traffic;
5. Goods imported from abroad into non-tariff zones, goods sold from inland
into non-tariff zones and used only in non-tariff zones, goods traded between
non-tariff zones, except two The following types of goods: Goods brought into
the zone are subject to the regulations of a non-tariff zone where people live
without hard fences and passenger cars with less than 24 seats.

3. Calculation of SCT
• The basis for calculating excise tax is the taxable price of

goods and services subject to excise tax and the excise
tax rate.
Payable tax Taxed price Tax rate

= X

3. Tax Bases
3.1. Taxed/Taxable price

a- For domestically produced goods, imported goods are the prices
sold by manufacturers and importers (Consolidation document
02/VBHN-VPQH dated April 28, 2016)
Selling price, VAT exclusive – Environment tax (if any )
SCT price= ----------------------------------------------------------------

1 + tax rate
Ví dụ: Thang Long Tobacco Factory sells a shipment of cigarettes to agents
including 500 packs of cigarettes for 15,000 VND/pack (price includes tax).
Calculate the excise tax that the factory has to pay, knowing the excise tax
rate is 65%?
Taxed price, VAT exclusive= 15.000/(1+10%) = 13.636 VND/pack

SCT price = 13.636/(1+65%) = 8.264 VND/pack
SCT Tax = 500 x 8.264 x 65% = 2.685.800 VND

b - For imported goods
The excise taxable price of imported goods subject to

excise tax is the price inclusive of import tax.
CIF Import duty
SCT taxed price SCT Tax
Example: An enterprise imports 300 bottles of wine at CIF 15 USD/bottle.

Import tax 60%, SCT 50%. Exchange rate 1USD = 23,000VND. Calculation
of excise tax payable upon import?
SCT price = 15 + 15x60% = 24USD/chai

SCT Tax = 300x 24USD x 50% x23.000 = 82.800.000VND

c- For processed goods :
Is the taxable price of goods sold by the processing establishment or the

selling price of products of the same or similar type at the same time of sale,
exclusive of VAT, excluding environmental protection tax (if any), excluding
SCT
d- For goods sold by mode of instalment payment or deferred payment :
The taxed price shall be the selling price as paid one time, exclusive of VAT,
environmental protection tax (if any), and the excise tax, SCT, and the price shall not
include interests..
e- For goods produced in the form of business cooperation between producer

and company using or owning trademarks or production technologies :
The taxed prices shall be the selling price, exclusive of VAT and
environmental protection taxes (if any) of the company using or owning
trademarks and production technologies.

f- For services
It is the service price set by the service provider, which is specified as follows:
Selling price, VAT exclusive

SCT price = ------------------------------------------
1 + tax rate
• Business disco, massage, karaoke: revenue from activities, including revenue

from accompanying activities (eating, bathing, sauna...)
• Golf business: VAT-exclusive revenue from selling membership cards and golf
tickets, including golf fees paid by golfers and members to golf clubs (including
golf course maintenance fees) and deposit (if any).
• In case the golf business deals in other goods and services that are not subject
to excise tax, those goods and services are not subject to excise tax.
• Casino business, jackpot games: revenue from casino and prize-winning video
games minus the payout for guests is equal to the proceeds (exclusive of VAT)
due to exchange for customers before playing at the currency exchange counter
or playing table, game machine minus the amount returned to the customer.
• Betting business: revenue from ticket sales minus (-) bonus payments to
customers (prices excluding VAT), excluding sales of tickets for admission to
viewing entertainment events associated with betting activities .
• Lottery business: revenue from ticket sales of all types of lottery allowed to do
business in accordance with the law (revenue excluding VAT).

f- For service
Example: A golf business, revenue in the month from activities is as

follows
• Selling membership card: 120 million VND
• Selling golf tickets: 70 million VND
• Restaurant business: 40 million VND
• Souvenir shop: 40 million VND
• Revenue subject to excise tax = 120 + 70 = 190 million VND
SCT Tax:
190
X 20% = 31,7 million VND
1+20%

3. Tax Bases
3.2. TAX RATE

I GOODS TR (%)
1 Cigar/Cigarettes 75
2 Wine
a) Wine with ABV from 20o up 65
b) Wine wit ABV of under 20o 35
3 Beer 65
4 Automobile of under 24 seats 5-150%
Electric automobile (The Law No 03/2022/QH15) 1-15%
5 Motorcycles with cylinder capacity above 125cm3 20
6 Aircrafts 30
7 Yachts 30
8 Petrol 7%, 8%, 10%
9 Air-conditioner (not more than 90.000 BTU) 10

10 Playing cards 40
11 Votive papers 70
3. Tax Bases
3.2. TAX RATE

II SERVICES TR (%)
1. Discotheques 40
2. Massage, karaoke 30
3 Casinos, jackpot games 35
4. Entertainment with betting 30
5. Golf 20
6. Lotteries 15
Law No. 26/2008/QH12 dated November 14, 2008; Law No: 70/2014/QH13 dated November 26, 2014;
Amended Law No. 71/2014/QH13 dated November 26, 2014; Law No: 106/2016/QH13 dated April 6, 2016

IV. Declaration, registration, exemption and refund of SCT
Declare, register and pay rent

Self-study: Law No. 27/2008; Law No: 70/2014/QH13 dated
November 26, 2014; Law No: 106/2016/QH13 dated April 6, 2016
(amendment of tax rates for cars with less than 24 seats)
For production
and business • End of tax period (end
establishments of month)
For importers • Import time

2. Tax refund, SCT deduction
a. Tax refund
Self-read Decree 14/2019/ND-

CP, Decree No. 100/2016;
Decree 108/2015

2. a. Tax refund, SCT deduction
b. SCT deduction
Taxpayers who produce goods subject to excise tax with excise
taxable materials are entitled to a deduction of the excise tax already
paid on imported materials or paid for raw materials purchased
directly from domestic manufacturers. when determining the amount
of excise tax payable. The amount of excise tax to be deducted
corresponds to the excise tax amount of raw materials used to
produce sold goods..
SCT payable for _ SCT paid at the raw

material stage
SCT must be paid
= goods sold out of
stock in the period
corresponding to the
quantity of goods sold in
the warehouse during the
period

b. SCT deduction
Eg :Facility A has the following activities:

- Imported 10,000 liters of beer, paid for the contract, is 25
million VND
- - Exporting 8,000 liters to produce 24,000 cans of beer
- - Selling 20,000 cans of beer
- - The excise tax calculation price is 4000 VND/box of beer
and 5000 VND/liter of beer, the excise tax is 65%
• SCT for exported goods:

20,000 x 4,000 x 65% = 52 million
• Renting a mobile phone is entitled to:
25 million x (8,000/10,000) x (20,000/24,000) = 16.7
million
.SCT must be paid
52 - 16.7 = 35.3 million

b. SCT deduction
SCT payers for imported excise taxable goods may deduct the excise paid
at the import stage when determining the amount of excise tax payable for
domestic sales, and the deductible excise tax amount corresponding to the s
special excise tax amount of imported goods subject to excise tax sold. The
amount of excise tax to be deducted corresponds to the amount of excise
tax on imported goods subject to excise tax sold and can only be deducted
up to the corresponding amount of excise tax calculated in domestic sales.
The non-deductible difference between the amount of special consumption
tax paid at the import stage and the amount of excise tax sold domestically,
the taxpayer may account it as an expense for calculating corporate income
tax.( Decree 14/2019)
SCT must be paid

= SCT when selling _ SCT paid at the
import stage

Example
An imported car is priced at CIF: 20,000 USD; the

import tax rate of this model is 70%; SCT rate is
45%; Assume the exchange rate to calculate
import tax at the time of import is 22,500
VND/USD. The selling price excluding VAT stated
on the invoice of the importer is 1,164,712,500
VND. Calculation of SCT This company is entitled
to withhold and pay SCT when selling
domestically.

Step Content Tax rate Amount (VND)
1 Import taxed price of the car 450.000.000
2 Import tax = (1) x import tax rate 70% 315.000.000
3 SCT of the imported car = ((1) + (2)) x SCT rate 45% 344.250.000
4 The cost of imported car = (1) + (2) + (3) 1.109.250.000
5 The selling price of the importer (VAT exclusive) 1.164.712.500
6 The SCT of the car at selling stage = (5)/(1+45%) 803.250.000
7 SCT at selling stage = (6) x SCT rate 45% 361.462.500
8 Payable SCT at selling stage = (7) – (3) 17.212.500

c. Establishments producing many types of excise taxable goods with
different tax rates must declare and pay tax according to each tax rate.
If it is not possible to do separate accounting, it must pay the highest tax
rate.
d. Business establishments that purchase goods for export but do not

export them shall, in addition to paying VAT on the sale of goods, also
have to pay excise tax on behalf of the production establishment.
The excise taxable price in this case is the selling price exclusive of
excise tax and excluding VAT, specifically determined as follows:
Environmental
Domestic selling
price of CSXK - protection tax does not
include VAT
SCT calculation price = -----------------------------------------------------------
1+ SCT rate

3. Tax reduction
Companies producing goods subject

to excise tax that face difficulties
due to natural disasters, enemy
sabotage, unexpected accidents,
and suffer losses shall be
considered for excise tax reduction.
The tax reduction is determined on the basis

of the amount of loss caused by natural
disasters, calamities or unexpected accidents
but does not exceed the value of damaged
assets after being compensated (if any) and
not more than 30% of the tax payable
according to the Law in the year of damage.
DISCUSSION AND EXERCISES
1. What is your opinion on bringing mobile phones, high-end

cosmetics, beauty salon services into the subject of excise tax
and taking cars and beer out of the subjects subject to SCT?
2. There is an opinion that "SCT should not be applied to
establishments producing goods subject to excise tax". Your
opinion?

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CHAPTER 4: EXCISE TAX

(SPECIAL CONSUMPTION TAX)

TS. Nguyễn Thu Hằng

TS. Nguyễn Thu Hằng

Excise tax (SCT) is an

TS. Nguyễn Thu Hằng

One-stage consumption tax, An indirect tax

Scope of SCT is narrow

Same and different

TS. Nguyễn Thu Hằng

.For non-essential goods

TS. Nguyễn Thu Hằng

The 2nd Amendment of SCT

The Law No. 70/2014/QH13 2014

2014 The Law No. 71/2014/QH13

The Law No. 106/2016/QH13

TS. Nguyễn Thu Hằng

• Amended Law No. 70/2014/QH13 dated November 26, 2014

• Consolidation document 02/VBHN-VPQH dated April 28, 2016

• Find more on https://vanban.vcci.com.vn/thue-tieu-thu-dac-biet

TS. Nguyễn Thu Hằng

Add Your Text

Add Your2. Text

3. Contributing to the management, production

TS. Nguyễn Thu Hằng

For manufacturers and importers

TS. Nguyễn Thu Hằng

High tax State

TS. Nguyễn Thu Hằng

– Use a separate tax → There are laws and legal documents

TS. Nguyễn Thu Hằng

TS. Nguyễn Thu Hằng

Goods and services

TS. Nguyễn Thu Hằng

• Note: Exporters that purchase excise tax-liable goods from

TS. Nguyễn Thu Hằng

1. Cigarettes, cigars and other tobacco preparations 1. Dance halls;

TS. Nguyễn Thu Hằng

1. Goods directly exported by manufacturing or processing establishments or

2. Imported goods, including :

TS. Nguyễn Thu Hằng

3. Aircraft, yachts used for business purposes transporting goods, passengers,

TS. Nguyễn Thu Hằng

• The basis for calculating excise tax is the taxable price of

Payable tax Taxed price Tax rate

TS. Nguyễn Thu Hằng

3.1. Taxed/Taxable price

Selling price, VAT exclusive – Environment tax (if any )

SCT price= ----------------------------------------------------------------

Taxed price, VAT exclusive= 15.000/(1+10%) = 13.636 VND/pack

TS. Nguyễn Thu Hằng

The excise taxable price of imported goods subject to

CIF Import duty

SCT taxed price SCT Tax

Example: An enterprise imports 300 bottles of wine at CIF 15 USD/bottle.

SCT price = 15 + 15x60% = 24USD/chai

TS. Nguyễn Thu Hằng

c- For processed goods :

Is the taxable price of goods sold by the processing establishment or the

e- For goods produced in the form of business cooperation between producer

TS. Nguyễn Thu Hằng

Selling price, VAT exclusive

• Business disco, massage, karaoke: revenue from activities, including revenue