04/13/2024

SPECIAL SALES
TAX
DANG THI BACH VAN (MA)

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 CONTENT

OVERVIEW BRIEF CONTENT APPLICATION

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Objectives
◦ After studying this chapter, students can:
- Explain and identify:
+ Concept, characteristics, basic role of SST.
+ Subjects subject to SST
+ Subjects not subject to SST.
+ SST taxpayers.
+ Tax calculation method, tax price, SST rate.
+ Tax exemption, reduction and special consumption tax refund.
- Calculate SST liability.
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 Concept
Characteristics
Overview
Roles

Taxable subjects
Non-taxable subjects
SST
Taxpayers
Calculation methods
Content
Tax refund
Tax credit

Declaration 04/13/2024 4

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I. OVERVIEW
Definition

◦ SST is a form of excise tax that applies to the production

or import of certain goods and the provision of certain
services.
◦ Imported goods (except for various types of petrol) are
subject to SST at both the import and selling stages.

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Characteristics - Taxable subjects are
limited.

Characteristics - Relatively high tax rate

- Relatively popular around

the world *
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 - Contribute to orienting
Roles production, import and
consumption of society.

- Mobilize revenue for the

Roles
state budget

- Regulate the income of

consumers of goods and
services subject to SST.
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II. BRIEF CONTENT OF SST

◦ The Special Consumption Tax Law in Vietnam has been applied

since 1990 on the basis of inheriting the Goods Tax.

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1. TAXABLE SUBJECTS

◦ a. Commodities: 10 groups
- Cigarettes, cigars and tobacco products used for smoking,
snorting, chewing, sniffing and sucking.
- Alcohol.
- Beer.
- Cars with less than 24 seats.
- 2-wheeled motorbikes and 3-wheeled motorbikes with cylinder
capacity over 125 cm³.

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1. TAXABLE SUBJECTS

◦ a. Commodities: 10 groups
- Airplanes, yachts.
- Gasoline of all kinds.
- Air conditioners with capacity of 90,000 BTU or less.
- Cards.
- Votive paper, votive goods.

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1. TAXABLE SUBJECTS

b. Services: 06 groups
- Disco business.
- Massage and karaoke business.
- Casino business, electronic games with prizes including games
with jackpot machines.
- Betting business
Sports and entertainment betting and forms permitted by law:
selling betting tickets for horse racing, car racing, and greyhound
racing
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1. TAXABLE SUBJECTS

b. Services: 06 groups
- Golf business: selling membership cards and golf tickets.
- Lottery business.

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2. NON- TAXABLE SUBJECTS

Goods on the list subject to SST will not be subject to this tax in
the following cases:
a. Exported goods
- Goods directly exported by manufacturing or processing
establishments.
- Goods entrusted by manufacturing or processing
establishments or sold to other business establishments for
export.

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2. NON- TAXABLE SUBJECTS

b. Import goods
- Goods receiving humanitarian aid; non-refundable aid; gifts
from foreign state agencies, political, socio-political, socio-
political-professional, socio-professional organizations, armed
units; Gifts and gifts from abroad to individuals in Vietnam
within the norms.
- Goods transferred, transited, or transported through Vietnam's
border gates and borders.
…………………….
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2. NON- TAXABLE SUBJECTS

c. Goods imported from abroad into the non-tariff zone; goods

traded between non-tariff zones; Goods from the domestic
market sold into non-tariff zones and used only in non-tariff
zones (except cars with less than 24 seats).
d. Airplanes and yachts used for the purpose of transporting
goods, passengers, tourism business and aircraft used for
security and defense purposes.

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2. NON- TAXABLE SUBJECTS

e. Cars with less than 24 seats according to the manufacturer's

design are used as ambulances, prisoner transport vehicles, and
funeral vehicles; vehicle inspection, radio frequency control;
armored vehicles launching ladders; mobile television vehicle;
The vehicle is designed to have both seating and standing for 24
people or more; Vehicles running in amusement, entertainment
and sports areas are not registered for circulation and do not
participate in traffic;

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2. NON- TAXABLE SUBJECTS

f. Air conditioners with a capacity of 90,000 BTU or less,

according to the manufacturer's design, are only intended for
installation on vehicles: cars, railway carriages, ships, boats, and
airplanes. #

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3. TAXPAYERS
PRODUCERS

GOODS

IMPORTERS
Taxpayers - Time of import
- Time of resale

SERVICES
OFFER SERVICES
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4. CALCULATION METHODS

4.1. For goods sold domestically

Unit price
Taxable Tax
SST = amount * for tax * rate
calculation

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a. Taxable quantity is the determined quantity of goods
consumed, including goods used for exchange, internal
consumption, gifts, donations, and promotions.
◦ The time to determine tax on goods sold domestically is
the time of transfer of ownership of the goods and the
right to use the goods to the buyer.

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b. Taxable price
Determined based on selling price without special
consumption tax, without environmental protection tax
and without VAT (not excluding packaging)*

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 Selling price Environment
excludes VAT - protection tax
Taxable price =
1 + tax rate

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◦ For example:
Binh Minh trading enterprise specializes in trading HAI LUA brand
wine, sold 1,000 bottles of wine in a month, the selling price
excluding VAT is 120,000 VND/bottle.
◦ Requirement: calculate special sales tax payable?
◦ Suppose that the excise tax rate on wine is 60%, the VAT tax rate
on wine is 10%, the cost of a wine bottle is 5,000 VND/bottle.

◦ => 1,000 * 120,000/(1+60%) * 60%

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Taxable Price

◦ The taxable price of domestically produced goods sold by a

manufacturer/imported goods sold by an importer is the selling
price exclusive of SST and environment protection fee.
◦ Where the selling price is not considered to be in line with the
market price, the tax authorities may deem the taxable price.
◦ The taxable price of imported goods upon importation is the
dutiable price plus import duties.

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Taxable Price

◦ Where manufactured or imported goods are subsequently sold

by a trading entity to entities which are not third parties, an
anti-avoidance provision may impose a minimum taxable price
in certain cases.

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Tax Credits

◦ Taxpayers producing SST liable goods from SST liable raw

materials are entitled to claim a credit for the SST paid on raw
materials imported or purchased from domestic manufacturers.
◦ Where taxpayers pay SST at both the import and selling stages,
the SST paid at importation is creditable against SST paid at the
selling stage.

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Tax Rates

The Law on SST classifies items subject to SST into two groups:
1. Commodities - cigarettes, liquor, beer, automobiles having
less than 24 seats, motorcycles, airplanes, boats, petrol, air-
conditioners up to 90,000 BTU, playing cards, votive papers;
and
2. Service activities - discotheques, massage, karaoke, casinos,
gambling, lotteries, golf clubs and entertainment with betting.

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PRACTICE
During the tax declaration period of August 20xx, company A
incurred the following transactions:
- Imported 10,000 liters of raw wine, paid special consumption
tax on import of 250 million VND (based on documents
submitted to the state budget at the import stage)
- Delivered 8,000 liters of wine to produce 12,000 bottles of wine
- Selling 9,000 bottles of wine, the special consumption tax
liability of 9,000 bottles of wine is 350 million VND

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◦ In this case, special consumption tax is determined as follows:- The
amount of special sales tax paid at the import stage of raw wine is
declared and deducted corresponding to 9,000 bottles of finished wine
sold
= (250 million VND: 10,000 liters) * (8,000 liters: 12,000 bottles)*9,000
bottles
= 150 million VND
==> Special sales tax amount that A still has to pay in the month:
= 350 million VND - 150 million VND 04/13/2024 31
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