Circular 158/2025/TT-BTC: Detailed Regulations on Special Consumption Tax

Overview

Circular 158/2025/TT-BTC was issued by the Ministry of Finance on December 31, 2025, taking effect from January 1, 2026, to provide detailed guidance on implementing Decree 360/2025/ND-CP concerning the Special Consumption Tax (SCT) Law. This is a critical legal document specifying the application of SCT to taxable goods and services.

Scope of Application

The Circular applies to:

• Manufacturing enterprises producing SCT-taxable goods in Vietnam
• Import enterprises bringing SCT-taxable goods from abroad
• Trading enterprises dealing in SCT-taxable goods and services
• Individuals and organizations involved in activities related to SCT-taxable goods and services

Goods and Services Subject to SCT

Under the new regulations, SCT-taxable goods and services include:

Main Product Categories

• Cigarettes, cigars, and other tobacco products
• All types of liquor (spirits with 20% alcohol or above and below 20%)
• All types of beer
• Petroleum products (gasoline, diesel, kerosene, mazut, lubricants)
• Automobiles (classified by seating capacity and cylinder displacement)
• Two-wheeled and three-wheeled motorcycles with cylinder displacement over 125cm³
• Aircraft and yachts
• Aviation fuel and oil
• Air conditioners with capacity up to 90,000 BTU

Taxable Services

• Discotheque, massage, and karaoke business
• Casino and electronic games with prizes
• Golf business (including membership cards and green fees)
• Lottery business

Tax Calculation Methods

The Circular prescribes two SCT calculation methods:

Percentage-Based Method

Formula: SCT = Tax calculation price × Tax rate

• Tax calculation price for domestically produced goods: Selling price excluding VAT and SCT
• Tax calculation price for imported goods: Import price (CIF) + Import duty

Absolute Quota Method

Applied to certain products such as beer, liquor, tobacco, and petroleum:

Formula: SCT = Quantity of goods × Absolute tax rate

Example: SCT for gasoline and oil is calculated per liter with specific rates for each product type.

Tax Liability Determination Points

For Domestically Produced Goods

• When enterprises deliver goods for sale
• When payment is received for goods sold on advance payment basis
• When enterprises use goods for exchange, gifts, or internal consumption

For Imported Goods

• At the time of customs declaration registration

Tax Declaration and Payment

Tax Period and Declaration

• Tax period: Monthly for most enterprises
• Tax declaration documents: Include SCT declaration forms and related documentation
• Filing deadline: No later than the 20th of the month following the month when tax liability arises
• Payment deadline: No later than the last day of the declaration filing deadline

Payment Methods

• Direct payment at State Treasury or commercial banks
• Electronic tax payment through the tax authority's system

Tax Exemption and Non-Taxable Cases

The Circular specifies cases eligible for tax exemption or non-taxation:

• Export goods (except consignment exports)
• Temporary imports for re-export in accordance with regulations
• Humanitarian aid and non-refundable assistance goods
• Goods in transit through Vietnamese territory
• Goods under ODA projects and foreign investment as regulated

Tax Refund Policy

Enterprises are eligible for SCT refunds in cases of:

• Export goods (when tax was paid on imported materials)
• Goods that paid tax but are non-taxable under new regulations
• Tax paid by mistake or in excess

Violation Handling

Violations of SCT regulations will be handled as follows:

• Tax recovery and late payment penalty (0.03%/day)
• Administrative fines ranging from 10% to 30% of recovered tax
• Criminal prosecution for serious tax evasion and fraud

Important Notes for SME Businesses

Preparation Work

• Review inventory to determine whether goods are subject to SCT
• Update accounting software according to new regulations
• Train accounting staff on new requirements

Document Retention

• Keep complete invoices and documents proving tax calculation prices
• Maintain detailed accounting records for SCT-taxable goods
• Preserve tax declaration documents and payment receipts

Professional Consultation

Businesses should seek advice from:

• Local tax authorities
• Professional tax consulting firms
• Industry business associations

Practical Examples

Example 1: Manufacturing Beer

A brewery produces 100,000 liters of beer in January 2026. The selling price is VND 15,000/liter (excluding VAT and SCT). The SCT rate is 65%.

• Tax calculation price: VND 15,000/liter
• SCT payable: 100,000 × VND 15,000 × 65% = VND 975,000,000
• Declaration deadline: February 20, 2026
• Payment deadline: February 20, 2026

Example 2: Importing Automobiles

An enterprise imports a 9-seat automobile in February 2026. CIF price is USD 30,000 (exchange rate: VND 24,000/USD). Import duty rate is 70%. SCT rate is 50%.

• CIF price: USD 30,000 × VND 24,000 = VND 720,000,000
• Import duty: VND 720,000,000 × 70% = VND 504,000,000
• Tax calculation price: VND 720,000,000 + VND 504,000,000 = VND 1,224,000,000
• SCT payable: VND 1,224,000,000 × 50% = VND 612,000,000

Compliance Recommendations

For Manufacturers

• Establish separate accounting for SCT-taxable products
• Implement strict inventory controls
• Document all transfers and internal uses of taxable goods
• Maintain records of destroyed or damaged goods

For Importers

• Ensure accurate customs declarations
• Verify correct HS codes for imported goods
• Keep complete import documentation
• Calculate SCT correctly at customs clearance

For Trading Businesses

• Verify suppliers' tax compliance
• Maintain chain of custody documentation
• Issue proper invoices for downstream sales
• Track purchases from manufacturers vs. importers

Transition Provisions

For goods produced or imported before January 1, 2026, but sold or declared after this date:

• Apply the tax rates and regulations in effect at the time of production or import
• Submit supplementary declarations if necessary
• Adjust accounting records to reflect new classification

Conclusion

Circular 158/2025/TT-BTC provides a comprehensive legal framework for implementing SCT. Businesses must thoroughly study and fully comply with these regulations to avoid legal risks and optimize tax costs legally. Proper understanding and implementation of this Circular is essential for maintaining business operations and ensuring tax compliance in 2026 and beyond.