Reflecting to the authorities, Ms. V.T.B.V - representative of a hotel in Khanh Hoa - expressed concern before the Law on Special Consumption Tax (TTDB) No. 66/2025/QH15 officially takes effect from January 1, 2026.
According to the new regulations, soft drinks according to National Standards (NAS) with sugar content over 5g/100ml will be subject to tax. This makes food service businesses worried about high prices.
This representative said that the hotel often serves homemade drinks as requested such as coffee with added sugar, fresh juice, milk-grilled smoothies or mocktails.
Ms. V wondered whether these handmade cups of water were considered "drink water" and subject to a 10% tax, because the current law does not clearly describe the scope of application for on-site mixed drinks.
To answer this problem, the Khanh Hoa Provincial Tax authorities have issued specific instructions based on the technical definition of the field.
The tax authority cited National Standard TCVN 12828:2019, defining soft drinks as "pre-mixed products for drinking" for the purpose of soft drinks, processed from water, can contain sugar and flavorings.
Notably, this standard excludes and does not apply to products such as milk and dairy products, liquid foods for nutritional purposes, natural mineral water, vegetable juice and nectar vegetables.
From the above legal basis, the tax authority affirmed that self-made drinks at hotels at the request of customers such as coffee, juice, and smoothies will not be subject to tax if they are not in the group of "pre-mixed products" as defined in TCVN 12828:2019.
Thus, the key factor to determine whether taxable is whether products are in the group of pre-mixed industrial production or not. Handmade beverages served on the spot or in the excluded group such as milk and pure juices will often not be subject to this new special consumption tax.
