Tax rate by region Vietnam

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Vietnam operates an updated consumption tax framework overseen by the General Department of Taxation (GDT). Under recent structural changes, the standard VAT rate on cross-border e-commerce and digital services supplied by non-resident businesses stands at 10%. However, to support general economic growth, the state provides a temporary 2% VAT reduction (lowering the effective rate to 8%) on select domestic categories. 

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Vietnam

Vietnam applies a Value Added Tax (VAT) with rates of 0%, 5%, 10%, and exempt categories. Non-resident e-commerce/digital businesses without permanent establishment must register, obtain a tax code, declare quarterly via the General Department of Taxation (GDT) e-portal, and pay online. 

Official government link: General Department of Taxation

10.00%

E-products and services VAT/Sales tax rate

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

After the first sale

Online registration possible

Yes 

Local representative needed

Not mandatory

Registration procedure

Register via GDT e-portal; obtain a Vietnamese tax code; file tax returns online quarterly; pay tax online

List of digital and electronic services liable for tax

E-commerce and digital-based platform services

Registration threshold

No threshold

Filing interval

Quarterly

Filing deadline

By the last day of the first month following the quarter

E-invoicing requirements

Yes

Record keeping

10 years 

How-To Guides: Vietnam SaaS VAT

Step: 1 Threshold

Effective January 1, 2022, Vietnam requires non-resident vendors of digital services to customers (B2C and B2B) in Vietnam to register for and collect VAT, regardless of the sales amount.

Step: 2 Business Registration

Foreign suppliers must register via the General Department of Taxation (GDT) Etaxvn Portal specifically designed for “Overseas Suppliers” (Etaxvn).

Step: 3 TIN/VAT Number

Upon registration, you will be issued a 10-digit Tax Identification Number (TIN) (Mã số thuế) to use for filing and payment.

Step: 1 Standard Rate

Standard VAT (IVA) in Uganda is 10%. 

Step: 2 Rate Formula

To calculate your tax amounts, use the following formula:

 

Tax Amount = Net Price x 19%

Step: 3 Reverse Charge (B2B)

If the foreign supplier is registered under Circular 80, they declare and pay the tax directly. If the supplier is not registered, the Vietnamese B2B buyer must withhold the tax (Reverse Charge/FCT withholding) before payment.

Step: 1 Selling B2C

Once registered, you must calculate and pay the 10% tax (VAT+CIT) on all sales to Vietnamese individual consumers.

Step: 2 Selling B2B

• If Registered: You collect/pay the tax on B2B sales as well.
• If Not Registered: Do not charge tax. The Vietnamese business buyer is liable to withhold and pay the FCT (5% VAT + 5% CIT) to the government on your behalf.

 

Step: 3 Invoice Requirements

Foreign suppliers registered under Circular 80 are not required to issue local “Red VAT Invoices” but must provide a commercial invoice/receipt containing:

 

• Supplier Name & Address
• Supplier’s 10-digit Tax Code (TIN)
• Buyer Name & Address
• Description of Service
• Total Amount & Tax Amount

Step: 1 Filing Interval

File tax returns Quarterly.

Step: 2 Filing Deadline

Returns are due by the last day of the first month following the quarter (e.g., April 30 for Q1).

Step: 3 Submission

Submit returns electronically via the Etaxvn (Overseas Supplier) portal. Payments can be made in major foreign currencies (USD, EUR, etc.) to the GDT’s account.

Step: 4 Record Keeping

Maintain records for a minimum of 10 years in accordance with the Law on Tax Administration.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Vietnam’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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