Value Added Tax (VAT) reporting in Vietnam
Register and report VAT in Vietnam for your business and understand how to submit the necessary returns within the required deadlines
Understanding VAT registration and reporting in Vietnam
✅ How does VAT reporting work:
- Within 10 days from company registration, your business will be issued a VAT number.
- Companies must submit VAT invoices monthly.
- The taxpayer must submit monthly VAT returns and settle tax payments on or before the 20th of the following month.
❌ Consequences of late or inaccurate VAT filing, or failure to file
- Penalties of up to VND 25 million for late filing or failure to file.
- Late filings accrue a progressive interest rate of 0.03%.
- 20% of the understated amount for inaccurate filing.
The Value Added Tax (VAT) is a tax on the assessed value of consumer goods and services based on manufacturing, distribution, and consumption. VAT applies to imported goods and most goods and services intended for the Vietnamese market.
The Vietnam VAT is typically at a set rate of 10%, but from July 2023 to June 2024 it has been temporarily reduced to 8%.
VAT return submissions
Vietnam VAT invoices can be electronic, pre-printed, or ordered. Invoices are submitted to the General Department of Taxation. There are 2 methods for filing VAT returns:
- Credit Method: Applies to Vietnamese registered businesses. Output is determined by VAT invoices obtained from suppliers and is declared monthly.
- Direct method: Used by entities without a Vietnamese Accounting System and without resident establishments. Also applicable for gold, silver, and gem trading. VAT is determined by total revenues and is based on sales invoices.
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