What is Special Consumption Tax?

Special Consumption Tax (SCT) is an indirect tax imposed on certain luxury goods and services. The purpose of SCT is to regulate the consumption of specific high-consumption products and services, adjust consumer behavior, and contribute to state budget revenues. SCT also aims to manage the impact of certain goods and services on public health and the environment.

Characteristics of Special Consumption Tax

Special Consumption Tax (SCT) is defined by the following characteristics:

  • Limited Tax Base: SCT applies to specific goods and services outlined by state regulations. These typically include items like tobacco, alcoholic beverages, luxury cars, and other products deemed to impact public health or the environment negatively.

  • Single-Stage Impact: SCT is levied at only one stage of the supply chain. Unlike some taxes that apply multiple times throughout the production and consumption process, SCT is imposed only once, usually at the point of sale.

  • Indirect Tax Affecting Consumers: SCT is included in the selling price of the goods or services. While consumers do not pay the tax directly, they bear its cost through higher prices. The tax thus has an indirect effect on consumers by raising the prices of taxed products.

  • High Tax Rate: SCT rates are generally higher compared to other taxes. This high rate is intended to regulate the consumption of products and services that are considered harmful or less necessary, thereby influencing consumer behavior and increasing state revenues.

KMC’s Special Consumption Tax Reporting Services

Given the complexity of tax management and the need for accurate compliance with legal regulations, KMC offers specialized SCT reporting services to assist companies in fulfilling their tax obligations effectively. Our services include:

  • Consulting on Necessary Documents for Monthly SCT Reporting: We provide guidance on the documents required for preparing accurate SCT reports. This includes advice on receipts, invoices, and other financial information needed to ensure the completeness and accuracy of the report.
  • Reviewing and Verifying Provided Documents: Our team conducts a thorough review and verification of the documents submitted by your company. This ensures that all information is correct and complies with current tax regulations, minimizing the risk of errors.
  • Preparing and Submitting Monthly SCT Reports: KMC will prepare the monthly SCT report based on the verified information and documents provided. The completed report will be sent to your company for review and approval before submission to the tax authorities.
  • Addressing Company Inquiries Regarding the Report: We are available to respond to any questions or concerns your company may have about the SCT report. Our team provides clear explanations and support to ensure that you fully understand the report and its implications.
  • Guiding the Company on Filing SCT Declarations and Payments: We offer guidance on the procedures for filing SCT declarations and making the necessary tax payments. This ensures compliance with tax regulations and timely submission.

Why Choose KMC for SCT Reporting?

KMC provides expert support in managing Special Consumption Tax obligations. Our services are designed to help businesses navigate the complexities of SCT reporting with precision and efficiency.

For reliable assistance with Special Consumption Tax reporting, contact KMC today. Our team is here to help you manage your SCT obligations effectively and ensure accurate tax reporting.

Other Services

Accounting Advisory

KMC provide professional initial accounting and tax registration services, you shall not bother about issues related to tax and accounting after post license. Our team with high expertise and many years experiences will support and accompany you.

Tax Advisory

Our tax services rely on our local knowledge to ensure tax compliance, tax administration and dealing with tax authorities. We assist you by taking into account the latest regulations thus ensuring full tax compliance and optimization.

Business Advisory

KMC believes in an approach to our client, as we familiarize ourselves with all aspects of your business and the environment in which you operate, it enables us to propose you the most appropriate plan at a competitive service fee.

Mergers and Acquisitions (M&A) Advisory

Our global network in combination with our deep industry knowledge means that we can help companies identify other businesses that offer a good strategic fit and assist them with acquisitions, mergers and alliances that allow them to maintain and build their competitive advantage.

Transfer Pricing Advisory

Transfer pricing refers to the rules and methods for pricing transactions between related entities, typically within multinational companies. Currently, regulations on compliance of transfer pricing are very complexly and strictly.

Annual Consulting Services

KMC has the expertise with experienced resources, including lawyers, auditors, accountants who have many years of experiences working in the investment, accounting, taxation and labour consulting fields.

Other Services

Besides Accounting, Taxation, Business Services, etc. KMC also has efforts to provide other services to Clients related to business activities of the enterprises in Vietnam.