Summary
- Vietnam has extended preferential tax treatment for petroleum products until 31 December 2026 under Resolution 43/2026/NQ-CP.
- Measures include VAT exemptions, reduced environmental protection taxes, and preferential import duty treatment for specified petroleum products and production inputs.
- The extension is intended to support energy security, stabilize fuel prices, and mitigate economic pressures.
Extended Article
The Government of Vietnam has prolonged a package of fuel-related tax relief measures designed to support market stability and economic growth.
Through Resolution 43/2026/NQ-CP, preferential duties and tax measures applicable to gasoline, diesel, aviation fuel, and certain petroleum production inputs have been extended until 31 December 2026. The previous regime had been scheduled to expire on 30 September 2026.
The extension preserves several significant indirect tax benefits. Certain raw materials used in fuel production continue to benefit from a 0% import duty rate, while environmental protection taxes remain reduced to zero on various fuel products, including gasoline, diesel, fuel oil, kerosene, and aviation fuel.
Of particular interest to indirect tax teams is the continuation of VAT relief. Vietnam will maintain a VAT exemption for gasoline, diesel, kerosene, fuel oil, and aviation fuel while preserving taxpayers’ entitlement to input VAT deduction. This feature effectively prevents irrecoverable VAT costs within the supply chain and reduces the overall tax burden associated with petroleum products.
The resolution also preserves differentiated excise tax rates for gasoline products, including preferential rates for E5 and E10 biofuel blends. These measures support broader policy objectives relating to energy affordability and fuel market stability.
For multinational companies operating manufacturing facilities, logistics operations, aviation activities, or energy-intensive businesses in Vietnam, the extension may provide short-term cost certainty and continued supply-chain tax relief. However, businesses should monitor future government decisions, as the resolution specifically allows the policy to be modified, shortened, or extended depending on economic and market conditions.
Practical Considerations
- Review fuel procurement budgets and indirect tax forecasts through year-end 2026.
- Confirm continued eligibility for input VAT deduction where exempt fuel products are used.
- Assess any implications for customs valuation and import duty planning on petroleum-related inputs.
- Monitor whether the government proposes a further extension beyond December 2026.
Sources
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