Special consumption tax (SCT) is a tax applied to certain goods and services that are not encouraged for consumption, such as alcohol, beer, cigarettes, cars, gasoline, high-end entertainment services, etc. This article will help businesses and individuals understand the taxable subjects, calculation method, price, tax rate and notes when issuing invoices with SCT.
What is special consumption tax and its purpose?
Special consumption tax (SCT) is an indirect tax, applied to certain goods and services that the State does not encourage consumption. Unlike value added tax which is commonly applied to most goods and services, SCT is only levied on items that have negative impacts on human health, the living environment or social order such as alcohol, tobacco, luxury cars, and entertainment services with luxury elements.
The purpose of special consumption tax is not only to increase revenue for the state budget but also to regulate consumer behavior, contribute to controlling activities with high risks affecting the community and promote a healthy and sustainable lifestyle.
Subjects subject to special consumption tax according to regulations
According to current legal regulations, subjects subject to special consumption tax (SCT) are divided into two main groups: goods and services.
About goods
Special consumption tax is applied to items that have negative impacts on health, the environment or are luxury goods, typically: alcohol, beer, cigarettes, cars with less than 24 seats, large-capacity motorbikes, gasoline, lubricants, high-capacity air conditioners, etc.
About the service
Special consumption tax applies to types of entertainment with special or luxury elements such as: casino business, electronic games with prizes, dance clubs, massage, karaoke, lottery and golf courses.
Determining taxable entities must be based on the specific list prescribed by the Law, and at the same time updating detailed guidance documents.
Current legal basis
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Law on Special Consumption Tax No. 27/2008/QH12, consolidated in 2023.
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Law amending and supplementing a number of articles in 2014 and 2016.
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Circular 195/2015/TT-BTC and Circular 130/2016/TT-BTC of the Ministry of Finance provide specific guidance on tax bases, taxable prices, and how to declare and pay special consumption tax in practice.
These documents are an important legal foundation for businesses to correctly determine tax obligations and avoid violations during implementation.
How to calculate special consumption tax
Special consumption tax is calculated according to the formula:
| Special Consumption Tax = Taxable price × Tax rate |
Depending on the origin of the goods or services, how to determine taxable price will be different:
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For domestically produced goods, the taxable price is the selling price excluding value added tax and excluding special consumption tax. If the goods are sold through many intermediaries, the taxable price is the price directly sold by the manufacturing facility.
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For imported goods, the taxable price is determined according to the formula: GTaxable price = Import taxable price + Import tax (if any). This price does not include VAT but includes import related costs.
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In case of trade discounts or promotions, enterprises are only allowed to deduct when these amounts are clearly stated in the contract and fully shown on the invoice, in accordance with tax laws.
Businesses should note that incorrect determination of taxable prices, especially when there are changes in promotional policies or unclear sales information, can lead to the risk of being subject to tax collection or administrative penalties.
Special consumption tax calculation price and important notes
The price for calculating special consumption tax must be determined before value added tax (VAT) and does not include advertising, promotion, packaging, shipping or any other costs other than the actual selling price.
In practice, many businesses tend to include these costs in the selling price, which can lead to incorrect tax calculation. If the special consumption tax cannot be separated from the selling price, businesses are required to convert according to the formula to determine the correct tax price (convert NET price to GROSS containing special consumption tax).
Table of special consumption tax rates for each group of goods and services
| Group of goods or services | Tax rate (%) |
|---|---|
| Beer and wine with alcohol content above 20° | 65 |
| Cars with cylinder capacity over 3.0L | 90 – 150 |
| Gasoline | 10 |
| Karaoke and massage services | 30 |
| Casino, lottery | 30 |
Some groups of goods, such as imported cars or mixed alcohol, may be subject to additional taxes such as import duties and environmental protection taxes. Businesses need to consider the total tax liability when determining the final selling price.
Example illustrating how to calculate special consumption tax
Company X produces and sells 1,000 cases of beer, the pre-tax selling price is 300,000 VND/case. The applicable tax rate is 65%.
Special consumption tax payable is calculated as follows:
= 1,000 × 300,000 × 65% = 195,000,000 VND
This tax will be declared separately according to the special consumption tax declaration form 01/TTDB, and needs to be regularly compared with invoices, revenue, and actual output to ensure compliance with the law and avoid additional collection when the tax authority inspects.
Invoice for goods and services subject to special consumption tax
When selling goods or providing services subject to special consumption tax (SCT), businesses are required to issue invoices in accordance with regulations, ensuring that all elements constituting the payment price are fully displayed.
Specifically, the invoice must clearly state:
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Selling price excluding tax (taxable price)
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Special consumption tax amount
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Value Added Tax (VAT) Amount
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Total amount the buyer must pay
Note: Do not combine special consumption tax with VAT or record both types of taxes under a single line. This may lead to errors in declaration and be penalized by the tax authorities.
In case of promotions or discounts, enterprises are only allowed to adjust taxable prices if the program is clearly specified in the contract, has full invoices and attached documents and complies with the provisions of Decree 123/2020/ND-CP and Circular 78/2021/TT-BTC.
To limit the risk of being charged back taxes or having expenses excluded, businesses need to keep complete and accurate promotional records, commercial contracts and invoices.
Accounting for special consumption tax in enterprises
| Accounting profession | Debit Account | Credit Account |
|---|---|---|
| Record special consumption tax payable | 632 (cost price) or 641, 642 | 3332 – Special Consumption Tax |
| When paying taxes to the tax authorities | 3332 – Special Consumption Tax | 111 or 112 (cash or bank transfer) |
Note:
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If special consumption goods are included in sales expenses, use account 641.
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If arising in general management activities, it can be recorded in account 642.
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Businesses need to have complete invoices and documents to be included in reasonable expenses when settling taxes.
Conclude
Special consumption tax is not only a mandatory financial obligation but also an effective tool for the State to regulate consumption of products and services that affect health and society. Correct declaration and accounting of special consumption tax helps businesses ensure compliance with the law, avoid the risk of collection and create a transparent foundation for business operations.
Enterprises need to regularly update new tax policies, accurately determine taxable prices and applicable tax rates, and strictly control the process of invoicing and storing documents. In the context of increasingly strict and complex regulations, cooperation with specialized accounting and auditing units is a strategic solution to help enterprises optimize costs, prevent errors and operate the tax system effectively.
