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Vietnam VAT Guide (Thuế GTGT)

Vietnam's Value-Added Tax (Thuế Giá Trị Gia Tăng) applies a standard rate of 10%, a reduced rate of 5% for essential goods and services, and 0% for exports. Businesses with revenue above VND 1 billion/year must register for VAT. Exporters can claim VAT refunds on input credits. All amounts in VND.

Vietnam's Thuế Giá Trị Gia Tăng (VAT/GTGT) is governed by the Law on Value-Added Tax (Luật Thuế GTGT) and administered by the General Department of Taxation. For related guidance, see our Corporate Tax Guide → and Personal Income Tax Guide →.

VAT Rates 2026

  • Standard rate (10%): Applies to most goods and services, including electronics, vehicles, clothing, restaurant services, hotel accommodation, construction, and telecommunications.
  • Reduced rate (5%): Applies to essential goods and services such as clean water, fertilizers, feed for livestock, textbooks, medical equipment, agricultural services, and certain cultural products.
  • Zero rate (0%): Applies to exported goods and services (including services consumed outside Vietnam), international transportation, and goods sold in duty-free shops. Exporters can claim input VAT credits.
  • Exempt (not subject to VAT): Certain goods and services are VAT-exempt including agricultural raw products, insurance, financial services, securities trading, healthcare, education, and technology transfer.

VAT Registration Threshold

  • Mandatory registration: Businesses and organizations with annual revenue from goods and services exceeding VND 1,000,000,000 (VND 1 billion) must register for VAT.
  • Voluntary registration: Businesses below the threshold may voluntarily register for VAT to claim input tax credits, which is common for exporters and B2B suppliers whose clients require VAT invoices.
  • Registration procedure: File VAT registration with the local tax authority where the business is headquartered. Foreign contractors providing services in Vietnam must also register.

VAT Calculation Methods

  • Credit method (khấu trừ): Tax payable = Output VAT — Input VAT. Businesses with full VAT invoicing and accounting records use this method. Input VAT on purchases of goods, services, and fixed assets can be credited.
  • Direct method (trực tiếp): VAT = Gross revenue × VAT rate (on a deemed value-add basis). Available to businesses that do not maintain full accounting records, typically small businesses and certain foreign contractors.

VAT Refund for Exporters

  • Exporters of goods: If input VAT exceeds output VAT (because exports at 0% generate no output VAT), the excess input VAT can be refunded. Refund claims require that the exporter has exported contracts, customs declarations, and invoices.
  • Conditions: The exporter must have a valid VAT registration, proper accounting records, and invoices. Refund claims must be filed quarterly or as per tax period declarations.
  • Processing time: Typically 40 days from the date the tax authority receives a complete and valid refund application.

VAT Filing and Payment

  • Filing frequency: Monthly (for businesses with annual revenue above VND 50 billion) or quarterly (for businesses with revenue below VND 50 billion).
  • Deadlines: Monthly returns by the 20th day of the following month; quarterly returns by the 30th day of the following quarter.
  • Late payment interest: 0.03% per day on overdue amounts.