Vietnam VAT Guide for 2026: Rates, Registration & Filing
Vietnam's standard VAT rate is 10%, with reduced 5% and 0% bands and periodic temporary cuts. This guide covers registration, invoicing, and filing for domestic and foreign-supplier VAT.
Last updated
Key Takeaways
Vietnam's VAT standard rate is 10%, with a temporary 2% cut bringing most supplies (including IT services) to 8% through December 31, 2026 — telecommunications and financial services are excluded and stay at 10%. All domestic businesses register for VAT under a tax code; foreign suppliers without a permanent establishment that do e-commerce or digital-platform business with Vietnamese customers must register through the General Department of Taxation's Electronic Portal. Specified financial, healthcare, education, and agricultural transactions are exempt and exports are zero-rated; software products and software services, including SaaS that qualifies as software, are not subject to VAT under the VAT Law in force since July 1, 2025.
Taxability Snapshot
SaaS
Not taxable if software
Digital Goods
Taxable
Sales Tax Rates
Vietnam's Value-Added Tax (VAT) has a standard rate of 10%. A temporary 2% cut brings most supplies to 8% through 31 December 2026 and now covers IT services (software products and services are not subject to VAT); telecommunications and financial services are excluded and stay at 10%. Reduced 5% and 0% bands also apply. The General Department of Taxation (GDT) administers it, and the new VAT Law took effect 1 July 2025 [1][2].
Rate | Applies to |
|---|---|
Standard 10% | Standard rate; telecoms, finance (excluded from the cut) |
Reduced 8% | Most 10%-rated goods and services, now including IT services, to 31 Dec 2026 |
5% | Essential goods and services |
Zero 0% | Exports of goods and services |
For more detail, see our APAC VAT guides.
The temporary 2-point VAT cut to 8% for many goods and services is scheduled to expire on 31 December 2026, after which those supplies revert to the 10% standard rate unless extended.
Registration & nexus threshold
Vietnam uses VAT registration rules, not US-style economic nexus. All domestic businesses register for VAT under a tax code. Foreign suppliers without a permanent establishment that conduct e-commerce or digital-platform business with Vietnamese customers must register, declare, and pay VAT through the General Department of Taxation's Electronic Portal for Foreign Suppliers, with no minimum threshold [1][2]. Registered foreign suppliers charge VAT on B2C supplies; for supplies to Vietnamese businesses, the Vietnamese party may withhold and remit instead. Registration steps are in the How to Register section.
Filing frequency & deadlines
Foreign suppliers file quarterly on Form 02/NCCNN, with VAT and corporate income tax computed as a deemed percentage of gross Vietnam revenue; the quarterly return is generally due by the last day of the first month of the following quarter. Domestic VAT is filed monthly or quarterly depending on revenue [1][2].
Exemptions
Specified financial, healthcare, education, and agricultural transactions are exempt, and exports are zero-rated. Software products and software services, including SaaS that qualifies as software, are not subject to VAT under the VAT Law effective 1 July 2025, while other IT services currently qualify for the 8% reduced rate through 31 December 2026, reverting to 10% on 1 January 2027; telecommunications and financial services are excluded from the cut and stay at 10% [1][2].
Penalties
Late-payment interest accrues at 0.03% of the unpaid tax per day. Late or incorrect filing carries administrative fines of roughly VND 2 million to VND 25 million, plus the daily interest [1].
Sources
[1] General Department of Taxation (Vietnam) — English portal (VAT rates and administration)
[2] General Department of Taxation (Vietnam) — Electronic Portal for Foreign Suppliers
Verified July 2026 against General Department of Taxation (Vietnam) guidance.
Frequently asked questions
Ready to automate your sales tax?
No credit card required.