Current VAT Rate in Vietnam (2025)

Standard Rate: 10% | Currency: VND

Vietnam VAT Calculator

Current Vietnam VAT Rate: 10%

Vietnam VAT Rates Overview

Complete breakdown of Value Added Tax rates in Vietnam

Current VAT Rates

Rate Type Percentage Applies To
Standard Rate 10% Most goods and services
Reduced Rate 1 5% Essential goods, food, books, etc.

History of VAT Changes in Vietnam

Timeline of Value Added Tax rate modifications

Historical VAT Rate Changes

  • 2025: Current standard rate of 10%
  • Historical data being compiled
  • 2025: Current standard rate of 10% (no change)
  • 2020: Temporary reduction during pandemic
  • 2011: Rate increased from X% to Y%
  • 2008: Temporary reduction during financial crisis
  • 1991: VAT system introduced at X%

Economic Impact

VAT contributes approximately 20-30% to Vietnam's total tax revenue. The current rate structure balances revenue generation with economic competitiveness within the Asia-Pacific region.

Exemptions and Reduced Rates in Vietnam

Special VAT rules and exemptions for specific sectors

Zero-Rated Items

The following items are zero-rated for VAT in Vietnam:

  • Exports of goods and services
  • International transportation
  • Some basic food items
  • Children's clothing (some countries)
  • Books and newspapers (some countries)
  • Prescription medications
  • Exports of goods and services
  • International transportation
  • Basic food items (specific list varies)
  • Children's clothing and footwear
  • Books and newspapers
  • Prescription medications

VAT Exempt Items

The following are exempt from VAT in Vietnam (no VAT charged, no input VAT recovery):

  • Financial services
  • Insurance services
  • Healthcare and medical services
  • Education and training
  • Postal services
  • Charitable activities
  • Financial services
  • Insurance services
  • Healthcare and medical services
  • Education and training
  • Postal services
  • Charitable activities

Reduced Rate Applications

Items subject to reduced VAT rates in Vietnam:

  • 5% rate: Various essential goods and services

VAT for Businesses in Vietnam

Essential information for companies operating in Vietnam

VAT Registration

  • Registration Threshold: Varies VND annual turnover
  • Voluntary Registration: Available below threshold
  • Registration Process: Online via tax authority website
  • Processing Time: Typically 2-4 weeks

VAT Returns and Payment

  • Filing Frequency: Varies
  • Filing Deadline: End of month following period
  • Payment Methods: Bank transfer, online payment
  • Late Filing Penalties: Varies by amount and delay

Cross-Border Trade

Special considerations for international transactions:

  • Intra-EU Trade: Not applicable (non-EU country)
  • Imports: VAT payable at point of entry
  • Exports: Generally zero-rated
  • Digital Services: Special rules may apply

Compare VAT Rates

VAT rates in neighboring and similar economies

Nearby Countries

🇦🇺 Australia

Standard Rate: 10%

🇳🇿 New Zealand

Standard Rate: 15%

🇯🇵 Japan

Standard Rate: 10%

🇰🇷 South Korea

Standard Rate: 10%

Frequently Asked Questions

Common questions about VAT in Vietnam

What is the current VAT rate in Vietnam?

The standard VAT rate in Vietnam is 10% as of 2025. This applies to most goods and services unless they qualify for reduced rates or exemptions.

How do I calculate VAT in Vietnam?

To add VAT: multiply the net amount by 10%. To remove VAT from a gross amount: divide by 1.10. Use our calculator above for instant results.

Who needs to register for VAT in Vietnam?

Businesses with annual turnover exceeding Varies VND must register for VAT. Voluntary registration is available for businesses below this threshold.

Can I reclaim VAT in Vietnam?

VAT-registered businesses can generally reclaim input VAT on business purchases. Non-EU tourists may claim VAT refunds on qualifying purchases when leaving the country.