Vietnam
VAT is charged by any taxable persons (companies and individuals) providing goods or services in Vietnam.
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.
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.
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.
Vietnam VAT rates |
||
| Rate | Type | Which goods or services |
| 15% | Higher | Luxury goods |
| 10% | Standard | All other taxable goods and services |
| 5% | Reduced | Basic foodstuffs; transport; medical equipment; agricultural production and services |
| 0% | Zero | Overseas construction; exports and associated services; agricultural equipment; fertilizers; animal feed |
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.