📢 SUGAR-CONTAINING SOFT DRINKS: SUBJECT TO SPECIAL CONSUMPTION TAX → NOT ELIGIBLE FOR 8% VAT REDUCTION

📢 SUGAR-CONTAINING SOFT DRINKS: SUBJECT TO SPECIAL CONSUMPTION TAX → NOT ELIGIBLE FOR 8% VAT REDUCTION

Accountants – F&B enterprises – Manufacturers should pay close attention to
the effective date of January 1, 2026 to avoid errors in invoicing and tax declaration.

🔴 Special consumption tax (SCT)

Pursuant to the Law on special consumption tax No.66/2025/QH15:

• Soft drinks conforming to Vietnamese Standards (TCVN) with a sugar content > 5g/100ml are
• 👉 Subject to Special Consumption Tax from January 01, 2026

🟡 Value Added Tax (VAT)

Under the Decree No.204/2025/QH15, many goods – services are eligible for a VAT reduction from 10% to 8%.

HOWEVER:
❌ Goods, services subject to Special Consumption Tax (excluded gasoline) are
NOT eligible for the VAT reduction.

👉 FINAL CONCLUSION

• ✔ Sugar-containing soft drinks are subject to Special Consumption Tax
• ❌ They are NOT eligible for the VAT 8% rate
• ➡️ When issuing invoices: VAT 10% applies

⚠️ RISK WARNING

• Incorrect application of VAT 8%
  → may result in tax arrears + penalties + late payment interest
• High risk for enterprises engaged in the manufacture – distribution of soft drinks and bottled beverages.

📌 SUGGESTIONS FOR ACCOUNTANTS & ENTERPRISES

• ✔ Review product formula (sugar content)
• ✔ Classify separate product codes subject to Special Consumption Tax
• ✔ Update invoicing and tax software from January 01, 2026

👉 A small change – but a costly mistake
F&B enterprises and accountants should not overlook this regulation.