VAT is charged by any taxable persons (companies and individuals) providing goods or services in Vietnam.

Vietnamese VAT rate

The standard VAT rate in Vietnam is 10 % .  There is a 5% reduced VAT rate on certain foodstuffs and a range of exempt goods and services as well as imports.

Vietnamese VAT Rates

Rate Type Which goods or services
10% Standard
5% Reduced Basic foodstuffs; transport; medical equipment; agricultural production and services.
15% Higher Luxury goods
0% Zero overseas construction; exports and associated services; agricultural equipment; fertilizers; animal feed.

VAT registration thresholds

Companies trading or importing into Vietnam are expected to register for VAT immediately upon receiving a business licence.  There is no registration threshold.

Vietnam VAT Compliance

Monthly VAT fillings should generally be submitted by the 20th of the month following the reporting period.  Annual reports may also be required.

Tax invoices must be issued, but electronic invoices are not yet acceptable.  Invoices are controlled by the Ministry of Finance.  There is a facility for the use of the ‘reverse charge’.  VAT Grouping in Vietnam There is currently no provision for VAT Grouping in Vietnam.

Non-resident traders in Vietnam

Non-resident companies have special rules, rates and options for accounting for VAT (‘FCWT’).  It is possible for the foreign company to elect to register for VAT as a non-resident – however there is also a mechanism for the customer to withhold the VAT on behalf of the foreign supplier.

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