The Law on Special Consumption Tax No. 66/2025/QH15 brings sugar-sweetened beverages into the tax net for the first time, but on a delayed schedule: the eight percent rate only starts on 1 January 2027 and rises to ten percent from 1 January 2028. At the time of writing in October 2026, this product group carries no special consumption tax liability at all. Beverage businesses are therefore sitting in a valuable preparation window, and also the window most exposed to misleading coverage written as if the tax were already being collected.
Taxable scope: the twin test of the national standard and the sugar threshold
Article 2 and the tariff schedule in Article 8 of Law 66/2025/QH15 define the taxable object through two cumulative conditions. First, the product must be a beverage under the national standard (TCVN), meaning it falls within the category the national standards system for beverages actually covers. Second, its sugar content must exceed five grams per one hundred millilitres. Missing either condition takes the product outside this tax, and Decree 360/2025/ND-CP is the instrument detailing how the object and sugar content are determined. The classification consequence is very practical: one brand can have a product line above the threshold that is taxable and another below it that is not, so the determination must be made SKU by SKU from formulation and test results, not by marketing categories such as soft drinks, juices or sports drinks.
The rate path: 8 percent from 2027, 10 percent from 2028, nothing due in 2026
The schedule in Article 8 of Law 66/2025/QH15 fixes only two steps for this product group: eight percent from 1 January 2027 and ten percent from 1 January 2028. Law 66/2025 took general effect on 1 January 2026, but the sugary beverage line is expressly deferred in the schedule, so all production and imports throughout 2026 escape this tax. Taxpayers are the organisations and individuals producing or importing taxable goods under the general framework of the special consumption tax law, with the taxable price being the producer’s selling price or the import taxable price. Any price list or contract clause already loading eight percent special consumption tax onto products sold in 2026 is charging for a liability that does not yet exist.
Why the 5g threshold is a formulation decision, not only a tax decision
The sugar threshold turns the tax question into a product development question. A product at 5.1 grams per hundred millilitres is taxed on its full taxable price, while one at 4.9 grams is not taxed at all, so a 0.2 gram difference creates a selling price gap far larger than the corresponding ingredient cost. Businesses accordingly face three strategic choices: keep the formula and pass the tax into price; reduce sugar below the threshold for part of the portfolio; or split the portfolio into two tiers, an original-flavour tier that bears the tax and a reformulated tier that does not. Every option requires registration, disclosure and label changes with real lead times, so the operative deadline is not 1 January 2027 but the last production and label-printing cycle of 2026.
What beverage businesses should prepare during 2026
First, inventory the entire portfolio by tested sugar content and test every SKU against the TCVN beverage criterion and the guidance in Decree 360/2025, to lock the list of products that will be taxable from 2027. Second, rebuild the 2027 price architecture and distribution contract terms, stating expressly that special consumption tax arises by law from 1 January 2027, to avoid distributor disputes when prices move mid-relationship. Third, prepare declaration systems, documentation and point-of-sale software to separate the eight percent taxable revenue line from the first day of 2027, and review inventory and in-transit imports around the transition. Finally, legal and tax teams should track the Ministry of Finance’s further implementation guidance for this new product line, because this is the first time the special consumption tax reaches a mass consumer category with a very wide product catalogue.
Beverage businesses that need the tax impact modelled SKU by SKU can contact FLAT Law Firm through the contact page for a review.
Frequently Asked Questions
When will sugar-sweetened beverages become subject to special consumption tax?
From 1 January 2027. The Law on Special Consumption Tax 66/2025/QH15 took general effect on 1 January 2026, but the tariff schedule in Article 8 defers this product group specifically: the 8% rate applies from 1 January 2027. Throughout 2026, these products carry no special consumption tax liability.
What is the special consumption tax rate on sugar-sweetened beverages?
Under the tariff schedule in Article 8 of Law 66/2025/QH15, the rate is 8% from 1 January 2027 and rises to 10% from 1 January 2028. The tax is charged on the special consumption tax price of taxable products produced or imported by organisations and individuals, not on every drink that tastes sweet.
Which drinks count as taxable sugar-sweetened beverages?
Beverages under the national standard (TCVN) with a sugar content above 5g/100ml, under Article 2 and Article 8 of Law 66/2025/QH15 and the determination guidance in Decree 360/2025/ND-CP. Both conditions must be met together: membership of the TCVN beverage category and exceeding the sugar threshold. The determination is made SKU by SKU from formulation and sugar testing, not from the product’s marketing name.
What should beverage businesses prepare before 1 January 2027?
Inventory the whole portfolio by tested sugar content to lock the taxable SKU list; rebuild 2027 pricing and distribution contract terms stating that the tax arises from 1 January 2027; prepare declaration systems and sales software to separate the 8% taxable revenue line from the start of 2027; and consider a formulation strategy, including reducing sugar below the 5g/100ml threshold for part of the portfolio, because formula and label changes must be completed inside the final 2026 production cycle.
This article has been quality-reviewed by the FLAW AI Legal Council