{"id":88046,"date":"2025-12-24T14:23:22","date_gmt":"2025-12-24T06:23:22","guid":{"rendered":"https:\/\/premiatnc.com\/vn\/?p=88046"},"modified":"2025-12-24T14:23:23","modified_gmt":"2025-12-24T06:23:23","slug":"vat-rate-in-vietnam","status":"publish","type":"post","link":"https:\/\/premiatnc.com\/vn\/blog\/vat-rate-in-vietnam\/","title":{"rendered":"A Detailed Guide on VAT Rate in Vietnam\u00a0"},"content":{"rendered":"\n
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Vietnam has been in the news for some time because of changes surrounding its Value Added Tax (VAT). Many business owners and entrepreneurs are currently interested in understanding the VAT laws in Vietnam<\/a> because they wish to find out how these new tax laws will affect them. If you belong to this category of people, keep reading to find more interesting details. This piece will teach you about the VAT rate in Vietnam.<\/p>\n\n\n\n

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Understanding VAT Rate in Vietnam<\/h2>\n\n\n\n

VAT is a tax levied on goods and services used for trading, production, or consumed directly in Vietnam. These goods also include goods and services purchased from non-residents. However, there will be certain exemptions to these taxes. You need to understand that the VAT rates in any jurisdiction are variable.<\/p>\n\n\n\n

VAT rate of 0% will be applied to exported goods or services. This classification will include goods and services transferred overseas\/non-tariff areas, goods consumed outside Vietnam\/non-tariff areas, goods sold to duty-free shops, goods produced for export, international transportation services, and exported services.<\/p>\n\n\n\n

Also, a VAT rate of 5% is charged on sectors in the economy that offer individuals essential goods and services. These goods and services include; raw foodstuff, clean water, medicine, medical equipment, teaching aid books, husbandry services, technical services, sports services\/products, and social housing. Furthermore, a 10% rate is charged on goods that are not classified as \u2018not subject to VAT or aren\u2019t charged with the 0% or 5% rate.<\/p>\n\n\n\n

A VAT rate of 10% applies to activities not specified as not-subject to VAT, exempt or subject to 0% or 5%.<\/p>\n\n\n\n

The Temporary 8% VAT Rate in Vietnam<\/h2>\n\n\n\n

The VAT rate in Vietnam has undergone temporary adjustments as part of the government\u2019s economic stimulus measures. While the standard rate is typically 10%, most goods and services are currently subject to a reduced VAT rate of 8% until the end of 2026. This is intended to support businesses and consumers by easing the overall tax burden, particularly in sectors affected by market fluctuations. It is important to note that certain sectors, such as finance, insurance, telecommunications, and real estate, continue to apply the standard 10% VAT rate despite the temporary reduction.  <\/p>\n\n\n\n

Businesses need to stay informed about these distinctions to ensure correct VAT application and avoid compliance issues. Properly applying the correct VAT rate affects not only pricing and invoicing but also financial reporting and tax planning. Companies that misapply the temporary rate may face penalties or need to adjust previously filed returns, which can disrupt operations and cash flow. Understanding this temporary adjustment is therefore crucial for accurate financial management and strategic decision-making in Vietnam.<\/p>\n\n\n\n

VAT Rate in Vietnam: Exempt Goods and Services<\/h2>\n\n\n\n

Some certain goods\/services do not exactly qualify to be charged with VAT<\/a>. These goods include agricultural products, imported or leased drilling rigs, aeroplanes and ships of a type which cannot be produced in Vietnam, goods and services provided by individuals having annual revenue of VND 100 million or below, financial services such as fund management, the transfer of land use rights, debt factoring, medical and elderly care services, foreign currency trading, public transport, teaching and training, the exportation of raw natural resources, etc.<\/p>\n\n\n\n

When a supply cannot be readily classified based on the tax tariff, VAT must be calculated based on the highest rate applicable for the particular range of goods which the business supplies.<\/p>\n\n\n\n

Reduction in VAT Rate in Vietnam from 2022 to 2024<\/h2>\n\n\n\n

The VAT laws in Vietnam were adjusted in February 2022. Government authorities in Vietnam issued Decree No. 15\/2022\/N\u0110-CP dated on January 28, 2022 and Decree No. 41\/2022\/N\u0110-CP dated on 20 June 2022 to guide the implementation and reduction of Value Added Tax and Corporate Income Tax. The application period is from February 1, 2022 to December 31, 2022.<\/p>\n\n\n\n

After that, on June 30, 2023, the Government of Vietnam promulgated Decree No. 44\/2023\/ND-CP on VAT reduction according to Resolution No. 101\/2023\/QH15. According to the Decree, the VAT reduction applied from July 01, 2023 to the end of December 31, 2023.<\/p>\n\n\n\n

And on the morning of November 29, 2023, the National Assembly officially passed the Resolution of the 6th session, agreeing to extend the 2% VAT reduction period from January 1, 2024 to June 30, 2024.<\/p>\n\n\n\n

This decree was to support the country\u2019s recovery from the pandemic period.<\/p>\n\n\n\n

According to this regulation, the VAT rate for groups of goods and services currently subject to 10% VAT will be reduced to 8%. This rate change would affect several services, including goods imported, goods used in manufacturing and processing, and goods sold.<\/p>\n\n\n\n

However, when selling goods or providing services with different tax rates, the VAT invoice<\/a> must clearly state the tax rate of each goods and services or issue a separate invoice to indicate any goods and services that qualify for this reduction. The regulation also stipulate that you\u2019ll also be required to declare any goods that are eligible for this deduction under Form 01.<\/p>\n\n\n\n

You must note that certain goods and services do not qualify for the VAT reduction introduced earlier this year. They include financial services, banking, securities, metals, telecom services, Real estate business, chemical and mining products, goods and services subject to Special Consumption Tax, and IT goods and services.<\/p>\n\n\n\n

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VAT Rate in Vietnam: Handling Declaration and Payment<\/h2>\n\n\n\n

All organizations and individuals producing or trading VATable goods and services in Vietnam must register for VAT<\/a>. In certain cases, branches of an enterprise must register separately and declare VAT on their own activities.<\/p>\n\n\n\n

The deadline for submit VAT declaration<\/a> on a monthly basis by the 20th day of the subsequent month, or on a quarterly basis by the last day of the first month of the subsequent quarter (for companies with prior year annual revenue of VND 50 billion or less).<\/p>\n\n\n\n

Asides from the product categories discussed above, you need to note that there are goods or services where VAT declaration and payment are not required. For these supplies, no output VAT has to be charged but input VAT paid on related purchases may be credited. These supplies include;<\/p>\n\n\n\n