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In addition to the provisions on the VND 1 billion revenue threshold, Law No. 09/2026/QH16 dated 24 April 2026 also amends an item closely watched by the automobile market: the special consumption tax (SCT) rates applicable to battery-powered cars with fewer than 24 seats. Under Article 4 of the Law, the date of the rate increase is postponed from 1 March 2027 to 1 January 2031, meaning the current preferential rates will continue to apply for nearly four more years.

In this article, ATAX summarises the amendment, compares it with Special Consumption Tax Law No. 66/2025/QH15 and highlights the points that manufacturers, importers and traders of electric cars should note.

1. Legal basis and effective date

Article 4 of Law 09/2026/QH16 amends and supplements the provisions on "motor vehicles with fewer than 24 seats powered by batteries" at point g, item 4, Part I of the SCT Tariff stipulated in Clause 1, Article 8 of Special Consumption Tax Law No. 66/2025/QH15.

Regarding effectiveness, Clause 1, Article 5 of Law 09/2026/QH16 provides that the Law takes effect from the date of its adoption (24 April 2026), except for Articles 1, 2 and 3 (personal income tax, VAT and corporate income tax), which take effect from 1 January 2026. Accordingly, the SCT provision for battery electric cars in Article 4 takes effect from 24 April 2026.

2. New tax rates under Law 09/2026/QH16

The amended tariff keeps the rates applicable from 1 January 2026 unchanged and only changes the date on which the higher rates apply:

The only change, but a significant one: the 3% – 2% – 1% – 2% rates are extended until 31 December 2030, instead of only until 28 February 2027 as originally provided in Law 66/2025/QH15. The rates after the increase (11% – 7% – 4% – 7%) remain unchanged.

3. Vehicles outside the scope of the amendment

Article 4 of Law 09/2026/QH16 only amends the group of "motor vehicles with fewer than 24 seats powered by batteries". Other vehicle groups in the SCT Tariff of Law 66/2025/QH15 remain unchanged, specifically:

• Other electric vehicles with fewer than 24 seats (not battery-powered): 15% (9 seats or fewer, passenger pick-ups), 10% (10 to fewer than 16 seats), 5% (16 to fewer than 24 seats), 10% (double-cab pick-ups, VAN trucks).
• Vehicles running on petrol combined with electric power (hybrids) as prescribed by the Government: 70% of the rate for vehicles of the same type.
• Vehicles running on bio-energy: 50% of the rate for vehicles of the same type.
• Conventional petrol and diesel vehicles with 9 seats or fewer: rates from 35% to 150% depending on engine capacity.

As a result, the tax gap between battery electric cars and internal combustion engine cars remains very large in 2026–2030, giving battery electric cars a considerable price advantage.

4. Impact on businesses

Manufacturers, assemblers and importers of battery electric cars gain additional policy stability for planning investment, production and imports. Business plans, pricing and tax budgets for 2027–2030 previously built on the 1 March 2027 rate increase should be reviewed and adjusted.

Transport, car rental and fleet service businesses may reconsider their roadmap for switching to electric vehicles, as the price of battery-powered cars (including SCT) will not face the upward pressure from 2027 that was previously expected.

Businesses buying cars as fixed assets: SCT is part of the vehicle's selling price, so the extended low rate helps reduce the historical cost of fixed assets and depreciation expenses in the coming years.

Notes for businesses

• Correctly identify vehicles that are "battery-powered" to apply the preferential rate; other electric vehicles not powered by batteries remain subject to 15% – 10% – 5% – 10%.
• Correctly determine the number of seats and the vehicle type (passenger car, passenger pick-up, double-cab goods pick-up, VAN truck with fixed partition), as each group has a different rate.
• Review sales contracts, import plans and pricing policies built on the 1 March 2027 rate increase.
• Follow guidance documents from the Government and the Ministry of Finance on criteria for classifying each vehicle type and on determining the SCT taxable price.

Frequently asked questions

What SCT rate applies to a 5-seat battery electric car bought in 2027?

Under the amended tariff in Article 4 of Law 09/2026/QH16, battery-powered passenger cars with 9 seats or fewer are subject to 3% from 1 January 2026 until before 1 January 2031. So in 2027 the 3% rate still applies; it does not rise to 11% from 1 March 2027 as previously provided in Law 66/2025/QH15.

Do hybrid vehicles enjoy the battery electric car rate?

No. Vehicles running on petrol combined with electric power fall under point đ, item 4 of the Tariff and are taxed at 70% of the rate for petrol vehicles of the same type; Law 09/2026/QH16 does not amend this group.

What will the SCT rate for battery electric cars be from 2031?

From 1 January 2031: 11% for vehicles with 9 seats or fewer and passenger pick-ups; 7% for vehicles with 10 to fewer than 16 seats; 4% for vehicles with 16 to fewer than 24 seats; 7% for double-cab goods pick-ups and VAN trucks.

Full text: Law 09/2026/QH16 amending the Laws on Personal Income Tax, VAT, Corporate Income Tax and Special Consumption Tax (in Vietnamese).

For advice on special consumption tax on automobiles, please contact ATAX (atax.vn).