The Vietnam tobacco industry has a production capacity of approximately 5,800 million packs per year, which is used at around 70% to 80% of its capacity. The cigarette output of the sector has been rising since 2000, mainly because of investments which were made in the tobacco growth, processing and production equipment, as well as higher controls to stop cigarette smuggling. In this article, our company formation advisors in Vietnam present a few key aspects related to selling tobacco in Vietnam.
The Law on Prevention and Control of Tobacco Harms in Vietnam
Selling tobacco in Vietnam is effectuated according to the Law on Prevention and Control of Tobacco Harms of this country.
According to the Article 25 of this law, tobacco sales in Vietnam must be effectuated by meeting the following requirements:
• Companies, wholesale and retail businesses must obtain a tobacco selling license in Vietnam according to the local government regulations;
• The individual who is responsible at the sale points are responsible for displaying notices which state that tobacco is not available for sale for children younger than 18 years of age. At the sale points, it is prohibited to display more than one pack, one carton or box of one cigarette type;
• Businesses and private persons cannot organize or enable selling tobacco in certain locations. Our Vietnam company formation agents can provide all the necessary details on these locations. Also, cigarettes cannot be sold outside of the gates within 100 meters from the premises of children daycare centers, kindergardens, elementary schools, secondary schools and so on.
Taxes on tobacco in Vietnam
The tobacco excise (the special consumption) tax rates in Vietnam are calculated on the pre-tax, ex-factory price and were adopted in 1990. Our Vietnam company registration consultants can provide all the necessary details related to this taxation. We can also help you to open a company in Vietnam.
The value-added tax (VAT) was introduced in this country in 1999. The VAT for cigarettes is charged with a rate of 10% of the pre-VAT retail price of these items.
The total consumption tax as a percentage of the retail price of cigarettes in Vietnam has continuously increased since 1990.
If you have more questions about tobacco in Vietnam, or for assistance to set up a company in Vietnam, please get in touch with us. Besides this, you are also welcome to get in touch with our agents if you need the services of an accountant in Vietnam. They can provide you with services such as payroll, bookkeeping, tax filing, and many more. You will be able to avoid a variety of legal issues and inconsistencies by using their services. So, get in touch with our company incorporation specialists in Vietnam for their assistance.