Vietnam VAT Guide 2026

Vietnam VAT at a glance

Do I need to comply? — 60-second check

Picture four Vietnamese business scenarios. A Japanese SaaS company that just signed its first Vietnamese enterprise customer through a Hanoi-based reseller. A US Shopify seller shipping fashion goods to Ho Chi Minh City via Tiki and Shopee. A German precision-tools manufacturer setting up a Vietnamese trading subsidiary in Da Nang. A Hanoi consultancy whose growth has just made it large enough to move from quarterly to monthly VAT filing. Each scenario triggers a different operational mechanic but operates within the same overall Vietnamese VAT framework — and the 2024 introduction of Decree 100 fundamentally changed the cross-border supplier compliance picture, creating a structured foreign-supplier registration path alongside the traditional Foreign Contractor Tax (FCT) mechanism.

Most operators arrive at this guide already half-sure which persona they are. The check below confirms it — or surfaces the edge case that puts you somewhere unexpected:

• Vietnamese-resident business? Whether you operate under the regular VAT regime or the simplified household business / small operator framework depends on your annual revenue (VND 100 million floor for small operators) and business structure. The Local Vietnamese Business track covers the full picture.
• Cross-border seller of digital services, SaaS, or online products to Vietnamese customers? Foreign SaaS / Digital Services Seller track. Decree 100/2024 introduced the foreign supplier registration framework, which is the structured alternative to the traditional FCT withholding mechanism for digital services.
• Cross-border seller of physical goods to Vietnamese consumers via direct shipping or marketplace — Tiki, Shopee Vietnam, Lazada Vietnam, your own Shopify store? Foreign E-commerce Seller track. Import VAT applies at customs alongside duty; Vietnam’s de minimis (VND 1 million per consignment) sits in the mid-range for ASEAN.
• Cross-border seller importing goods into Vietnam for distribution, manufacturing, or onward sale? Foreign Importer track. Import VAT at 10% applies at customs on CIF + duty + applicable excise. Recoverability through input VAT credit for VAT-registered Vietnamese entities. The Export Processing Zone (EPZ) and Industrial Zone frameworks provide preferential treatment for qualifying operations.

Two contextual points worth surfacing up front. First: the 2% temporary VAT reduction (from 10% to 8%) that operated during 2022–2024 for specific categories has largely expired by 2026. Some industry-specific reductions may remain in force under ongoing recovery measures; otherwise the standard 10% rate applies across most goods and services. Second: Vietnam’s mandatory e-invoicing system, in force since 1 July 2022 under Decree 123/2020, is one of the most comprehensive in ASEAN. All businesses must issue e-invoices through the GDT e-invoice system; each invoice receives a tax-authority code before being shared with the buyer. Compliance discipline around the e-invoice infrastructure is the principal operational workstream for Vietnamese businesses.

Quick-jump to your persona

• Foreign SaaS / Digital Services Seller into Vietnam
• Foreign E-commerce Seller into Vietnam
• Foreign Importer / Physical Goods Seller
• Local Vietnamese Business

Foreign SaaS / Digital Services Seller into Vietnam

Picture three Vietnamese SaaS scenarios. A Japanese cloud-services company selling subscriptions to Vietnamese B2B buyers through a Hanoi reseller — the traditional Foreign Contractor Tax (FCT) mechanism applies, with the Vietnamese buyer withholding combined VAT and CIT. A US streaming service selling B2C subscriptions directly to Vietnamese consumers via an Apple App Store / Google Play Store payment flow — Decree 100/2024 introduced the foreign supplier registration framework as the structured cross-border alternative. A Singapore SaaS company with both B2B and B2C Vietnamese revenue navigating both regimes simultaneously. Each scenario triggers a different operational mechanic, and the 2024 introduction of Decree 100 created structural options that fundamentally changed the foreign-supplier compliance picture.

Are your Vietnamese sales actually in Vietnam’s tax base?

Place of supply for cross-border digital services follows the recipient’s location. Vietnam’s VAT Law and Decree 100/2024 set out the indicators expected: customer billing address in Vietnam, payment instrument issued by a Vietnamese institution, IP address resolving to Vietnam, telephone country code, and other commercially relevant location data.

Capture multiple corroborating indicators for every Vietnam-treated sale and document them. GDT’s audit posture under the Decree 100/2024 foreign-supplier framework has matured through 2025–2026; the documentation requirement is treated as a substantive compliance line.

Take Kanjō Robotics K.K., a Japanese robotics-software company with JPY 800 million ARR globally and a Vietnam-focused product line — a robotics workflow SaaS sold to Vietnamese manufacturing companies. Kanjō’s Vietnamese revenue is principally B2B (large manufacturers operating in EPZs and Industrial Zones). Historically, Kanjō’s Vietnamese customers withheld combined VAT and CIT under the FCT framework when paying invoices. With Decree 100/2024, Kanjō has the option to register as a foreign supplier and operate under a structured cross-border framework — for B2B-heavy portfolios, the FCT mechanism often remains operationally simpler because the Vietnamese buyer handles the compliance via withholding.

Three triggers, three deadlines: when GDT expects you to act

Three operational triggers — and the deadlines each opens.

The Decree 100/2024 foreign supplier registration trigger applies when you supply goods or services to Vietnamese customers via electronic platforms and the supply is treated as connected with Vietnam. The framework provides a structured alternative to the FCT withholding mechanism. Registration is required prior to commencing cross-border supplies under the framework; the GDT has matured the foreign-supplier portal through 2025–2026.

The traditional FCT trigger applies to non-resident contractors supplying goods or services in Vietnam without permanent establishment. The Vietnamese buyer applies combined VAT and CIT withholding at the time of payment to the foreign contractor. This is the long-standing Vietnamese mechanism for non-resident taxation; it remains in operation alongside the Decree 100/2024 alternative.

The permanent establishment trigger applies when an overseas company creates a Vietnamese presence (representative office, branch, project office, dependent agent) — at which point the Vietnamese entity has direct registration obligations under the standard Vietnamese VAT framework.

Practical clock: the choice between Decree 100/2024 registration and the traditional FCT mechanism depends on your customer mix (B2B vs B2C), volume, and operational preferences. B2C cross-border digital service portfolios typically benefit from Decree 100 registration; B2B-heavy portfolios often continue under FCT for operational simplicity.

What the Decree 100/2024 foreign supplier registration involves

Sign-up runs through the GDT foreign supplier portal at etaxvn.gdt.gov.vn. Four operational steps for a cross-border seller:

• File for a Foreign Supplier Tax Code through the GDT portal. Required information includes business name and home jurisdiction details, authorised representative information, business activity description, and projected Vietnamese revenue.
• Receive the Foreign Supplier Tax Code assigned by GDT. The code identifies the cross-border seller for all interactions under the framework.
• Designate a Vietnamese tax representative — strongly recommended for non-Vietnamese-speaking businesses. Tax representatives are licensed Vietnamese tax consultants or law firms; they handle GDT correspondence, return filings, and audit defence.
• Configure your billing platform for Vietnamese 10% VAT on cross-border supplies to Vietnamese consumers, with the Foreign Supplier Tax Code on invoices.

What you charge, and on what

Vietnamese VAT at 10% applies to most cross-border digital services to Vietnamese customers under Decree 100/2024. The 5% reduced rate is reserved for specific essential and socially important categories that rarely apply to digital services.

Under the traditional FCT mechanism, the Vietnamese buyer withholds combined VAT and CIT at rates determined by the FCT Circular — the rates vary by service category (typically 5% VAT + 5% CIT = 10% combined for general services; rates differ for specific categories like construction, royalties, etc.). The foreign contractor receives the net-of-withholding amount; the Vietnamese buyer remits the withholding to GDT.

Consider BrightLearn Inc., a US-based online-course company selling USD 79/month subscriptions. A Hanoi consumer subscribes via a direct B2C cross-border transaction. Under Decree 100/2024 registration, BrightLearn charges USD 79 + 10% VAT = USD 86.90, collects the VND equivalent of USD 7.90 in VAT, and files the periodic return quarterly through the GDT foreign supplier portal. Alternatively, if BrightLearn has not registered under Decree 100/2024 and a Hanoi business contracts for the same service, FCT applies — the Hanoi business withholds combined VAT and CIT at the FCT rate on the gross invoice amount.

What a Vietnamese tax invoice must say

Under Decree 100/2024, foreign supplier invoices to Vietnamese customers follow a simplified format compared with the full Vietnamese e-invoice requirements. Mandatory fields:

• Supplier business name and Foreign Supplier Tax Code.
• Customer identification (name or email for B2C; full Vietnamese tax code for B2B).
• Invoice issue date and date of supply.
• Description of services supplied.
• Total amount payable, with VAT amount (10%) separately stated.
• For invoices in foreign currency: VND equivalent of the VAT amount, using a commercially supportable exchange rate.

The full Vietnamese e-invoice format under Decree 123/2020 applies for domestic VAT-registered businesses, not for Decree 100/2024 foreign suppliers. The foreign supplier track is separate.

Filing the periodic return and paying GDT

Decree 100/2024 foreign suppliers file the periodic return quarterly through the GDT foreign supplier portal. Returns and payment are due by the 20th day of the month following each quarter.

The return captures total Vietnamese B2C and B2B cross-border supplies, VAT collected (under Decree 100/2024 registration), and net VAT payable in VND. Payment is made through approved international remittance channels into GDT’s designated account.

What this actually costs

Approximate operating ranges for a Decree 100/2024 foreign supplier:

• Vietnamese tax representative retainer: VND 200,000,000–600,000,000 per year (approximately USD 8,000–24,000).
• Quarterly Decree 100/2024 return preparation: VND 40,000,000–100,000,000 per quarter — typically bundled into representative retainer.
• Initial registration: minor cost; mostly internal effort plus representative onboarding.
• Initial billing-platform configuration for Vietnam 10% VAT and Foreign Supplier Tax Code display: USD 4,000–12,000.
• Annual reasonableness review by Vietnamese tax advisor: VND 100,000,000–250,000,000 per year.

The FCT alternative shifts the compliance footprint to the Vietnamese buyer who handles withholding — operationally simpler for the foreign contractor but commercially affects gross-to-net economics.

The traps for foreign SaaS — observed in practice

Three patterns recur. They cost cross-border sellers money and exposure in roughly equal measure.

The first: misjudging the Decree 100/2024 vs FCT structural choice. For B2C-heavy portfolios, Decree 100/2024 registration is typically the better path — gives a clean cross-border compliance posture. For B2B-heavy portfolios where Vietnamese buyers were already comfortable with FCT withholding, sometimes Decree 100/2024 registration creates unnecessary friction with established commercial relationships. Confirm the structural choice with a Vietnamese tax advisor before committing.

The second: under-investing in indicator capture for customer location. GDT expects multiple corroborating indicators for every Vietnam-treated sale. Sellers who capture only billing address typically face indicator-mismatch findings during Decree 100/2024 compliance reviews.

The third: under-preparing for ongoing Decree 100/2024 implementation refinement. The 2024 framework is still maturing in implementation, with GDT issuing administrative guidance and circulars through 2025–2026 to clarify operational mechanics. Cross-border sellers operating under the framework should monitor GDT guidance updates regularly.

If you get this wrong

Sanction framework under the Law on Tax Administration:

• Late submission of the periodic return: sanctions scale with delay — from warnings to fines for prolonged non-submission.
• Late payment: 0.03% per day on outstanding tax (~10.95% per annum).
• Under-reporting (general): 20% administrative sanction on underpaid tax.
• Fraudulent evasion: 1×–3× evaded tax + criminal prosecution under the Criminal Code.

If you’ve been selling without signing up

Engage a Vietnamese tax representative. Voluntary disclosure prior to GDT audit unlocks sanction mitigation. The structural narrative — whether you’ve been operating under FCT (with the Vietnamese buyer handling withholding), under Decree 100/2024 without proper registration, or in some hybrid arrangement — materially affects the remediation path.

Foreign E-commerce Seller into Vietnam

Picture three Vietnamese e-commerce scenarios. A Korean cosmetics brand selling directly to Vietnamese consumers via its own Shopify store — direct cross-border shipping, with the Vietnamese consumer paying import VAT at customs above the VND 1 million de minimis. A Chinese consumer electronics brand selling through Tiki and Shopee Vietnam — the marketplaces have specific roles under recent Vietnamese e-commerce regulations. An Australian DTC food brand operating through a Vietnamese trading subsidiary in Ho Chi Minh City — the subsidiary handles import-of-record, claims input VAT credit, and operates as a normal Vietnamese e-commerce seller. Each scenario triggers a different operational mechanic but operates within the same overall import VAT framework.

Does this apply to your store?

If physical goods you sell arrive at a Vietnamese address, you’re inside the import-VAT framework:

• Direct cross-border shipping: import VAT at 10% on CIF + customs duty + applicable excise at customs. Vietnam’s de minimis is VND 1 million CIF per consignment; below this, most personal-use consignments clear free of VAT and duty (with some exceptions). The consumer typically pays at clearance via the carrier or freight forwarder.
• Vietnamese fulfilment via Vietnamese distributor or your own Vietnamese subsidiary: imported under the Vietnamese entity’s name, full VAT and duty paid at customs, domestic VAT on each onward sale. The Vietnamese entity claims input VAT credit on import VAT.
• Marketplace-routed sales via Tiki, Shopee Vietnam, Lazada Vietnam, TikTok Shop Vietnam: marketplaces have specific obligations under recent Vietnamese e-commerce regulations including tax-withholding rules for transactions facilitated through their platforms. Confirmation in writing per marketplace per seller account.

Three triggers, three deadlines: when GDT expects you to act

Different from the SaaS picture. Import-VAT exposure attaches at every consignment. The registration question is structural: Vietnamese subsidiary (mandatory VAT registration since Vietnam has no general turnover cap), Vietnamese distributor (distributor handles importer of record), or marketplace-mediated structure.

What the registration involves (for Vietnamese subsidiaries)

Vietnamese subsidiary registration sequence: incorporation as Vietnamese Limited Liability Company under the Enterprise Law (or other structures per the Investment Law) → Tax Code from GDT → Business Registration Certificate → Customs Account → bank account configurations. For foreign-majority-owned entities, additional Investment Law considerations and potentially Foreign Investment Law conditional sectors. Full sequence typically 8–14 weeks.

Charging VAT on goods, shipping, and returns

For your Vietnamese subsidiary, the applicable rate is 10% on most goods. The 5% reduced rate applies to specified essential categories. Zero-rated treatment applies to exports and EPZ supplies. Exempt categories include agricultural products at production stage, healthcare, education, and others.

On import: VAT at 10% on CIF + customs duty + applicable excise. Vietnam’s customs duty schedule varies by HS code with rates from zero to high for certain consumer categories. Excise applies to specific categories (alcohol, tobacco, motor vehicles, certain petroleum products).

Returns operate as credit-note adjustments through the e-invoice system. Issue a credit note (hóa đơn điều chỉnh) referencing the original invoice; the credit reduces output VAT in the period the credit note is issued.

Take Maple Goods Co., a Canadian DTC brand operating through a Vietnamese subsidiary. Maple imports a consignment of household goods, paying customs duty (assume 10%) and VAT (10%) at customs. The subsidiary then sells a VND 800,000 item to a Hanoi consumer. The invoice is VND 800,000 + 10% VAT = VND 880,000. Maple’s subsidiary collects the VAT, lodges monthly returns through e-Tax, claims input VAT credit on import VAT.

Invoice rules for e-commerce

Vietnam’s mandatory e-invoice format under Decree 123/2020 applies for VAT-registered Vietnamese entities. Each invoice receives a code from GDT before being shared with the buyer. The infrastructure is mature; integration with all major accounting platforms is operational.

For marketplace-routed sales, the marketplace handles its own platform-fee invoicing; sellers should ensure they receive proper Vietnamese e-invoices for marketplace fees to enable input VAT credit recovery.

Filing the periodic return — and the marketplace question

Your Vietnamese subsidiary files monthly VAT returns through e-Tax (for businesses with revenue above VND 50 billion previous year), or quarterly (for smaller businesses), due by the 20th of the following month.

The marketplace question for Vietnamese e-commerce operates under evolving regulations governing e-commerce platforms. Tiki, Shopee Vietnam, Lazada Vietnam, and TikTok Shop Vietnam each have specific obligations including transaction reporting and tax withholding for certain seller categories. Confirm in writing per marketplace per seller account.

The compliance cost stack

Total run-rate for mid-volume foreign e-commerce through a Vietnamese subsidiary typically lands in the VND 800,000,000–4,000,000,000 range per year (approximately USD 32,000–160,000), driven by monthly filings, customs broker fees, and e-invoicing infrastructure. Vietnamese subsidiary establishment is a separate one-time cost (VND 200,000,000–800,000,000) plus customs brokerage per shipment.

Three repeat failures we keep seeing — and why

After enough cross-border-seller engagements, the same three failures keep surfacing.

The first: under-preparing for Investment Law / Foreign Investment Law sectoral restrictions. Vietnamese e-commerce subsidiaries with foreign majority ownership may face conditional-sector restrictions affecting the structural setup.

The second: under-investing in e-invoice infrastructure readiness. Vietnam’s mandatory e-invoicing is comprehensive; integration must work cleanly from day one. Subsidiaries delayed on integration face filing-cycle disruption.

The third: misjudging marketplace tax-withholding obligations under recent regulations. The Vietnamese e-commerce regulatory landscape has evolved with marketplaces now having specific withholding and reporting obligations; sellers operating through marketplaces should confirm the marketplace’s compliance treatment in writing.

The sanction exposure

Same framework: late-filing sanctions scaling with delay, 0.03% per day late-payment (~10.95% per annum), 20% under-reporting administrative sanction, 1×–3× for fraud. Plus customs-specific sanctions under the Customs Law for misdeclaration.

If you’ve been selling without proper structure

Engage a Vietnamese tax advisor with cross-border e-commerce experience before voluntary disclosure. The framing of the structural narrative materially affects the remediation.

Foreign Importer / Physical Goods Seller into Vietnam

Picture three Vietnamese import scenarios. A German precision-tools manufacturer importing into Da Nang for distribution to Vietnamese factories. A US food-and-beverage brand importing into a Ho Chi Minh City fulfilment hub for the Vietnamese consumer market. A Korean electronics brand importing into a Vietnamese Industrial Zone subsidiary that exports finished products to ASEAN markets — the EPZ framework applies. Each scenario triggers the same import VAT mechanic — 10% on CIF + duty + applicable excise — but the structural choices around EPZ / Industrial Zone treatment, the use of bonded warehousing, and the choice of Vietnamese subsidiary vs Vietnamese distributor drive materially different compliance and cash-flow outcomes.

Whether you’re the importer of record

Bring goods into Vietnam and Vietnamese Customs (Tổng cục Hải quan) assesses customs duty (HS-code dependent), VAT at 10% on CIF + duty + applicable excise, and any sector-specific anti-dumping or safeguard duty. The combined liability is payable at clearance unless an EPZ, bonded warehouse, or Industrial Zone arrangement defers the liability.

Three triggers, three deadlines: when GDT expects you to act

Import-VAT exposure attaches at every consignment. Registration question is structural: Vietnamese subsidiary (mandatory VAT registration, no turnover cap) or Vietnamese distributor (distributor handles importer of record).

What the registration involves (customs and VAT together)

Three importer-specific registrations on top of standard VAT registration:

• Customs Code with Vietnamese Customs through the e-Customs portal. Required for every commercial importer.
• Export Processing Zone (EPZ) / Industrial Zone tenant approval where applicable.
• Investment Registration Certificate for foreign-invested entities under the Investment Law.

How import VAT is calculated

Standard 10% VAT on CIF + customs duty + applicable excise. For consumer and industrial goods at moderate duty rates, the VAT base is meaningfully higher than CIF alone where duty applies.

Run the numbers on a USD 100,000 CIF consignment of industrial goods at 5% customs duty. Duty = USD 5,000. VAT base = USD 105,000. VAT at 10% = USD 10,500. Total at clearance: USD 15,500. If the Vietnamese subsidiary is VAT-registered using the goods for taxable supplies, the USD 10,500 VAT is recoverable as input credit.

Invoicing for re-sold imports

Vietnam’s mandatory e-invoice format under Decree 123/2020 applies for onward sales. Reference the Customs Permit / Import Declaration Number on the e-invoice; this links customs to VAT records. For EPZ / Industrial Zone operations, specific documentation chains substantiate the preferential treatment.

Filing the periodic return — and where importers extract real value

Your Vietnamese subsidiary files VAT returns through e-Tax (monthly for larger businesses, quarterly for smaller). The input VAT reclaim is where importers extract most compliance value at the 10% rate. Reconciliation between import VAT paid (customs records via e-Customs) and input credit claimed (VAT return) is the standard audit starting point.

The real cost of compliance for importers

Itemised cost matrix for a mid-sized foreign importer through Vietnamese subsidiary (VND 100 billion–VND 1 trillion annual Vietnamese turnover):

Three repeat failures we keep seeing — and why

Three lines we audit every foreign-importer engagement against:

• HS classification correct and defensible — Vietnamese Customs scrutiny is active.
• Input VAT reconciliation discipline — customs records vs VAT returns must reconcile.
• Customs Permit reference on outward e-invoices — link between customs and VAT.
• EPZ / Industrial Zone documentation chain in place where preferential treatment is claimed.

Customs and VAT sanctions together

GDT sanction framework plus Customs Law sanctions for misdeclaration, undervaluation, or violation of import controls.

If you’ve been importing without proper structure

Engage both a Vietnamese customs broker AND a Vietnamese tax advisor before voluntary disclosure. The customs and VAT chains must reconcile cleanly.

Local Vietnamese Business

Picture three Vietnamese business scenarios. A growing Hanoi consultancy whose previous-year revenue just crossed VND 50 billion, triggering the move from quarterly to monthly VAT filing. A Ho Chi Minh City SaaS startup operating below VND 100 million annual revenue — household business / small operator regime applies. A Da Nang manufacturer with both regular VAT and EPZ operations navigating the dual compliance picture. Each scenario operates within the same Vietnamese VAT framework but with materially different operational implications. The bigger 2026 questions for Vietnamese-resident businesses are about e-invoicing operational discipline under Decree 123/2020 (mandatory since 1 July 2022 — already routine but with continued GDT refinement) and the monthly-vs-quarterly filing-frequency question driven by the VND 50 billion threshold.

When the cap kicks in

Different from most jurisdictions: Vietnam has no general turnover cap for VAT registration. All business activity is in scope from supply one. The structural choice is between regular VAT taxpayer status and the household business / small operator framework for businesses below VND 100 million annual turnover.

Three triggers, three deadlines: when GDT expects you to act

Within 10 working days of beginning business activity. Tax registration runs through the integrated business registration process via the National Business Registration Portal. Crossing the VND 50 billion previous-year revenue threshold triggers the move from quarterly to monthly VAT filing from the start of the following year.

What the registration involves

Vietnamese businesses register through the National Business Registration Portal integrated with GDT. Documents required:

• Business registration documents (Certificate of Enterprise Registration).
• Legal representative information.
• Proof of business address.
• Authorised signatory designation.
• Bank account details.

What you charge — and the zero-rate versus exempt distinction

Standard rate 10% on most goods and services. Reduced rate 5% on specified essential and socially important categories. Zero-rated 0% on exports of goods and qualifying export services and EPZ supplies — taxable supplies, input VAT credit recoverable. Exempt supplies (agricultural products at production, healthcare, education, financial services, certain land transfers) — outside the VAT system, input VAT on related costs generally not recoverable.

Invoicing rules and the e-invoice infrastructure

Vietnam’s mandatory e-invoice system under Decree 123/2020 has been in operation since 1 July 2022. All businesses must issue e-invoices through the GDT system; each invoice receives a code from the tax authority before being shared with the buyer. The infrastructure is mature; integration with all major accounting platforms is standard.

Filing the periodic return rhythm for local businesses

Monthly VAT returns for businesses with previous-year revenue above VND 50 billion, due by the 20th of the following month. Quarterly VAT returns for smaller businesses, due by the 30th day of the month following the quarter. Annual finalisation separate.

The internal cost of being VAT-compliant

For most resident Vietnamese businesses, compliance cost is people-time plus accounting-system investment. Small business with simple operations: in-house with accountant + Vietnamese-localised accounting platform. Mid-sized (VND 100 billion turnover and above): VND 400,000,000–1,500,000,000 per year on external Vietnamese tax accountant support.

The traps for local Vietnamese businesses

Where do most local Vietnamese finance teams trip up first in 2026?

Mis-managing the monthly-vs-quarterly filing transition at the VND 50 billion previous-year revenue threshold. Crossing the threshold triggers the move to monthly filing from the start of the next year; businesses that don’t adjust their filing cadence promptly face compliance gaps.

What’s the second?

Mis-applying the zero-rated vs exempt distinction. Several Vietnamese supply categories have nuanced treatment (financial services subcategories, certain healthcare, certain education) where the distinction is operationally significant for input credit recovery.

And the third?

Treating e-invoice operational discipline as a routine accounting detail. The Vietnamese e-invoice system requires GDT-code receipt before buyer transmission; errors in the workflow trigger compliance gaps and customer-side input-credit problems.

Sanction exposure for residents

Same framework: scaled late-filing sanctions, 0.03% per day late-payment, 20% under-reporting administrative sanction. Two resident-specific items: failure to register when required carries exposure on unbilled VAT plus late-payment sanctions; e-invoice infrastructure violations under Decree 123/2020 carry specific fines.

Catching up after a misclassification

Voluntary disclosure prior to GDT audit is the standard remediation path.

Cross-track essentials

Invoicing requirements

Vietnam’s mandatory e-invoice format under Decree 123/2020 applies for all VAT-registered businesses since 1 July 2022. Mandatory elements: supplier name and Tax Code, buyer name and Tax Code, invoice issue date, description of supplies, taxable value, applicable rate (10%, 5%, or zero-rated), VAT amount, GDT-authentication code, total inclusive of VAT.

E-invoicing under Decree 123/2020

Comprehensive mandatory e-invoicing for all businesses. Each invoice flows through the GDT system, receives a tax-authority code, and is shared with the buyer electronically. The system is mature; integration with Vietnamese accounting platforms is standard.

Audit and record-keeping

Records must be retained for 10 years under the Law on Tax Administration. Electronic records permitted. GDT audits are routine; sector-specific audit programmes have been increasingly active.

Sanctions summary

Voluntary disclosure prior to GDT audit unlocks sanction mitigation.

Frequently asked questions

What is the Vietnam VAT rate in 2026?

For all sellers

10% standard rate. The 2% temporary VAT reduction (10% to 8%) that operated during 2022–2024 for specific categories has largely expired by 2026. 5% reduced rate applies to specified essential and socially important categories. Zero-rated 0% on exports and qualifying export services.

Do foreign companies need to sign up for Vietnam VAT?

For cross-border sellers

Yes. Decree 100/2024 introduced the foreign supplier registration framework for cross-border digital service providers. Alternatively, the traditional Foreign Contractor Tax (FCT) mechanism continues to operate, with the Vietnamese buyer withholding combined VAT and CIT at the time of payment. Choice between Decree 100/2024 registration and FCT depends on customer mix and operational preferences.

What is the Vietnam VAT registration cap for resident businesses?

For local Vietnamese businesses

Vietnam has NO general turnover cap — all business activity is in scope from supply one. Household business / small operator framework applies for businesses below VND 100 million annual turnover. Regular VAT taxpayer status above that.

How often do I file the periodic return in Vietnam?

For all registered taxpayers

Monthly for businesses with previous-year revenue above VND 50 billion (due by 20th of following month). Quarterly for smaller businesses (due by 30th day of month following quarter). Annual finalisation separate. Decree 100/2024 foreign suppliers file quarterly.

What is the late-payment sanction in Vietnam?

For all registered taxpayers

0.03% per day on outstanding tax (approximately 10.95% per annum). Scaled administrative sanctions for late filing. Under-reporting carries 20% administrative sanction (general) or 1×–3× for fraud.

What is Decree 100/2024?

For cross-border digital service providers

Vietnam’s framework for foreign supplier registration covering cross-border supplies of goods and services to Vietnamese customers via electronic platforms. Provides a structured alternative to the traditional Foreign Contractor Tax (FCT) withholding mechanism. Registration through GDT’s foreign supplier portal; quarterly returns.

What is the Foreign Contractor Tax (FCT)?

For non-resident contractors

Vietnam’s traditional cross-border tax mechanism for non-resident suppliers without permanent establishment. The Vietnamese buyer applies combined VAT and CIT withholding at rates determined by the FCT Circular (rates vary by service category, typically 5% VAT + 5% CIT = 10% combined for general services). FCT remains in operation alongside Decree 100/2024.

How does e-invoicing work in Vietnam?

For all VAT-registered businesses

Mandatory under Decree 123/2020 since 1 July 2022. All businesses must issue e-invoices through the GDT system; each invoice receives a tax-authority code before being shared with the buyer. Integration with all major Vietnamese accounting platforms is standard.

How is import VAT calculated at Vietnamese customs?

For foreign importers

Import VAT at 10% (or 5% for reduced-rate goods) on CIF + customs duty + applicable excise. For most consumer goods: USD 100K CIF → USD 5K duty (5%) → USD 105K VAT base → USD 10.5K VAT. VAT recoverable as input credit for VAT-registered Vietnamese entities; duty not recoverable.

What is the EPZ / Industrial Zone framework?

For foreign importers and manufacturers

Vietnam operates Export Processing Zones and Industrial Zones providing structural preferential treatment for qualifying operations — VAT, duty, and excise deferral for in-zone operations. Investment Law and implementing regulations govern eligibility and operational requirements.

Are land and financial services exempt from Vietnam VAT?

For all sellers

Many financial services are exempt; certain land transfers are exempt in specific configurations. Agricultural products at the production stage, healthcare, education, and certain other categories are exempt. Input VAT on costs attributable to exempt supplies is generally not recoverable.

How do I correct an error in a Vietnam VAT return after filing?

For all registered taxpayers

Voluntary disclosure prior to GDT audit is the standard remediation path. File the corrected VAT return through e-Tax with supporting documentation. Engage a Vietnamese tax accountant with sector-specific experience before initiating.

Recent and upcoming changes

Already in effect

• Decree 100/2024 foreign supplier registration framework for cross-border digital service providers.
• 2% temporary VAT reduction (10% to 8%) for specific categories — operated during 2022–2024, largely expired by 2026.
• Mandatory e-invoicing under Decree 123/2020 since 1 July 2022 — fully operational.
• Continued EPZ and Industrial Zone frameworks supporting Vietnam’s manufacturing and export-oriented economy.

Coming up

• Continued GDT administrative guidance refining Decree 100/2024 implementation through 2026.
• Continued evolution of e-commerce regulations affecting marketplace tax-withholding obligations.
• Annual tax-law amendments through Government Decrees and Ministry of Finance Circulars.

Primary sources cited in this guide

• General Department of Taxation (GDT): https://www.gdt.gov.vn
• Vietnam e-Tax portal: https://thuedientu.gdt.gov.vn
• Foreign Supplier Portal (Decree 100/2024): https://etaxvn.gdt.gov.vn
• Vietnamese Customs: https://www.customs.gov.vn
• Ministry of Finance: https://www.mof.gov.vn
• Ministry of Planning and Investment (Investment Law): https://www.mpi.gov.vn
• Vietnam Legal Documents: https://thuvienphapluat.vn
• National Business Registration Portal: https://dangkykinhdoanh.gov.vn

Disclaimer

This guide is provided for general informational purposes by the TaxDo Tax & Regulatory Advisory Team. While our team thoroughly reviews and updates this content for accuracy before publishing, tax regulations change rapidly and local practices vary. This article does not constitute formal legal, tax, or accounting advice and should not be relied upon for specific compliance decisions. Always consult a qualified, licensed tax professional before taking action. TaxDo accepts no liability for actions taken based on this content.