Vietnam

Value-added tax (VAT)

VAT applies to goods and services used for production, trading, and consumption in Vietnam (including goods and services purchased from non-residents), with certain exemptions. The VAT rates are 0%, 5%, 10% and exempt, depending on the category of goods or services.

In addition, there is a separate category that includes supplies not subject to output VAT, but where related input VAT can, nevertheless, be credited.

On 26 November 2024, the National Assembly approved the new VAT Law No. 48/2024/QH15 which takes effect from 1 July 2025.

One of  notable points is that the new VAT law supplemented guidance on the transactions of foreign suppliers without permanent establishments in Vietnam having e-commerce and digital-based business activities. Tax payment will be made by these foreign suppliers, or withheld and paid by organisations managing digital platforms or Vietnamese entities using the deduction method for VAT declaration.

The VAT rate applicable to services provided by foreign suppliers without permanent establishments in Vietnam to organizations and individuals in Vietnam via e-commerce and digital-based platforms will be changed from 5% to 10%.

E-invoices

From 1 July 2022 onwards, all businesses, economic organisations, business households, and individuals paying tax under the declaration method must use e-invoices (except for certain cases).

Customs duties

Customs duties generally comprise import duty and import VAT. Most goods imported into Vietnam are subject to import duty and import VAT, except those that meet the conditions for exemption, such as goods imported for the production of subsequently exported goods under toll manufacturing or contract manufacturing arrangements or imported goods of export processing enterprises’ production activities, goods imported to form fixed assets of incentivised investment projects (in this case import VAT is not exempted), etc.

In addition to import duty and import VAT, there are also export duty, import special sales tax (SST), environment protection tax (EPT), anti-dumping tax, anti-subsidy tax, and safeguard tax, which are applied to only a limited number of goods. Anti-dumping tax, anti-subsidy tax, and safeguard tax are all considered as supplemental import duties applicable to the imported goods under certain scenarios.

Import duty is computed on an ad valorem basis (i.e. multiplying the imported good’s dutiable value by the corresponding import duty rate).

Import duty rates are classified into three categories: ordinary rates, preferential rates, and special preferential rates.

Preferential rates are applicable to imported goods from countries that have most-favoured-nation (MFN, also known as normal trade relations) status with Vietnam. The MFN rates are in line with Vietnam’s World Trade Organization (WTO) commitments and are applicable to goods imported from other WTO member countries.

Special preferential rates are applicable to imported goods from countries that have a special preferential trade agreement (or free trade agreement [FTA]) with Vietnam. Currently, some effective FTAs to which Vietnam is a party include:

• The Association of Southeast Asian Nations (ASEAN) Trade in Goods Agreement (i.e. the ATIGA).
• The Agreement on Comprehensive Economic Partnership among Member States of the Association of Southeast Asian Nations and Japan (i.e. the AJCEP).
• The Agreement on Trade in Goods of the Framework Agreement on Comprehensive Economic Cooperation between the Association of Southeast Asian Nations and the People’s Republic of China (i.e. the ACFTA).
• The Free Trade Agreement between the Socialist Republic of Viet Nam and European Union (i.e. the EVFTA).
• The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (i.e. the CPTPP).
• The Free Trade Agreement between the Government of the Socialist Republic of Viet Nam and the Government of the Republic of Korea (i.e. the VKFTA).
• etc

To be eligible for preferential rates or special preferential rates, the imported goods must be accompanied by an appropriate Certificate of Origin or an origin certification (e.g. a self-declaration by the exporter). When goods are sourced from non-preferential treatment/non-favoured countries, the ordinary rate (being the MFN rate with a 50% surcharge) is imposed.

Import VAT is applied to imported goods at a rate most commonly of 5% or 10%. 

Export duties are charged only on a few items, basically certain natural resources. Rates range from 0% to 40%.
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Special sales tax (SST)

SST is a form of excise tax that applies to selected goods and services. Goods that are manufactured and/or imported into Vietnam and subject to SST include cigars/cigarettes, spirits, wine and beer, automobiles, motorcycles, air conditioners, airplanes, petrol, etc. For goods, SST is charged at the production or importation stage. Imported goods (except for various types of petrol) are subject to SST at both the import and selling stages. The SST paid at importation will be creditable against SST paid at the selling stage.

The SST rates range from 7% to 150% for motor vehicles for the transport of fewer than 24 people.

The National Assembly ratified a new law amending and supplementing a number of provisions under certain laws, including the Law on SST. Accordingly, SST rates applicable to electric cars will be significantly reduced over the next five years, effective from 1 March 2022.

Recent legislative changes include reduced SST rates for electric cars starting March 2022. In 2023, the Ministry of Finance proposed further revisions to the SST law, with plans to adjust tax rates and expand coverage to new products, such as sugary beverages, from 2026 to 2030. The new law is anticipated for approval in May 2025.

Property taxes

Foreign investors generally pay rental fees for land use rights. The range of rates is wide depending upon the location, infrastructure, and the industrial sector in which the business is operating.

In addition, owners of houses and apartments have to pay land tax under the law on non-agricultural land use. The tax is charged on the specific land area used based on the prescribed price per square metre at progressive tax rates ranging from 0.03% to 0.15%.

In 2024, the Land Law No. 31/2024/QH15 (“LOL 2024”) was issued and became effective on 1 August 2024, which has made many changes in the stipulation on land.

Stamp taxes

Certain assets, including houses, land, automobiles and motorcycles, etc., that are subject to registration of ownership are subject to stamp duty. The stamp duty rates vary depending on the asset transferred.

Payroll taxes

Please see the Other taxes section in the Individual tax summary.

Green taxes

On 17 November 2020, the National Assembly issued the new Law on Environment 72/2020/QH14, which took effect from 1 January 2022, setting out a comprehensive guidance on environmental protection matters. 

Environmental or green taxes include taxes on energy, transport, pollution, and resources. Energy taxes are taxes on energy products and electricity used for transport, such as petrol and diesel, and for other purposes, such as fuel oils, natural gas, coal, and electricity used in heating.

Below are some common types of green taxes.

Natural resource tax (NRT)

NRT is payable by industries exploiting Vietnam’s natural resources, including petroleum, minerals, natural gas, forest products, natural seafood, natural bird’s nests, and natural water. Natural water used for agriculture, forestry, fisheries, salt industries, and sea water for cooling purposes may be exempt from NRT, provided that certain conditions are satisfied. The tax rates vary depending on the natural resource being exploited, ranging from 1% to 40%, and are applied to the production output at a specified taxable value per unit. Various methods are available for the calculation of the taxable value of the resources, including cases where the commercial value of the resources cannot be determined. Crude oil, natural gas, and coal gas are taxed at progressive tax rates depending on the daily average production output.

Environment protection tax (EPT)

EPT is an indirect tax that is applicable to the production and importation of certain goods deemed detrimental to the environment, the most significant of which are petroleum and coal. EPT rates shall be determined according to the levels of adverse impact on the environment.

Carbon emission quota

In the new Law on Environment, the government introduced the concept of a carbon trading plan and an intention to impose a cap on carbon emission, i.e. carbon emission quota to all manufacturing companies that emit carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6), and nitrogen trifluoride (NF3). Enterprises that are in the list of sectors producing greenhouse gas need to be inspected.

Green Incentives

Green incentives are financial benefits to encourage projects and investments that reduce environmental harm. They include environmental cash grants for such projects and tax incentives that reduce tax liabilities to stimulate investments that mitigate environmental impact.

As well as the above, in-scope projects may be granted with other incentives, such as: land related benefits, e.g. priority in the allocation of land, reduction of land rental; lower interest rates; exemption and reduction of environmental protection taxes and fees; subsidies to environmental-friendly products and services.