Value Added Tax (VAT) in Vietnam

VAT is levied on the sale of goods and the provision of services in Vietnam. The standard VAT rate in Vietnam is 10% which applied to most goods and services. However, a reduced rate of 5% VAT is levied on certain goods and services in the farming, healthcare, media, technical and scientific categories.

Goods and services provided directly to foreign companies are subject to 0% VAT if they are consumed outside Vietnam or in non-tariff areas. Also, certain agricultural products, medical services, printing and publishing and foreign currency trading are exempted from VAT.

Companies in Vietnam are expected to register for VAT immediately upon receiving a business licence.  Currently, there is no VAT registration threshold.

Monthly filing and payment of VAT must be made by the 20th day of the following month.

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