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. The Government has approved the resolution which includes a 2% VAT reduction for certain goods/services for the period from 1 July 2025 to 31 December 2026.

On 26 November 2024, the National Assembly approved the new VAT Law No. 48/2024/QH15, which took effect from 1 July 2025. One of the notable points is that the new VAT law supplemented guidance on the transactions of foreign suppliers without PEs 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 PEs in Vietnam to organisations 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 in Vietnam include import duty and import VAT, applied to most imported goods unless exempt under specific conditions, such as goods for production related to export or investments under incentivized projects. Other duties, like export duty, special sales tax (SST), environment protection tax, anti-dumping tax, anti-subsidy tax, and safeguard tax, apply to limited goods and are considered supplemental import duties in certain cases.

Import duty is calculated ad valorem based on the dutiable value at three rates: ordinary, preferential (for goods from countries with most-favoured-nation status), and special preferential (for goods from countries with free trade agreements (FTA) with Vietnam). Vietnam currently has many effective FTAs. Eligible goods must have the appropriate Certificate of Origin or origin certification.

Import VAT typically ranges from 5% to 10% (maybe reduced to 8%), while export duties apply sparingly to certain natural resources, with rates from 0% to 40%.

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 5% for four-wheeled motor vehicles with 16 to under 24 seats to 150% for motor vehicles for the transport of fewer than 24 people.

In June 2025, the Government has approved the amended SST law, which will take effect from 01 January 2026 and adjusts tax rates, such as increase the SST rates for tobacco products, alcohol and beer, and expands coverage to new products, such as sugary beverages.

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 November 17, 2020, the National Assembly enacted the new Law on Environment 72/2020/QH14, effective January 1, 2022, which provides comprehensive guidance on environmental protection in Vietnam. While the country lacks specific green taxes, various tax types address environmental concerns, including:

1. Natural Resource Taxes (NRT): Applicable to industries extracting natural resources, such as petroleum and seafood, with tax rates ranging from 1% to 40% based on production output.
2. Environment Protection Taxes (EPT): Indirect taxes on the production and importation of environmentally harmful goods, with rates determined by their environmental impact.

Additionally, on June 20, 2020, the National Assembly passed the Law on Water Resources 28/2023/QH15, effective July 1, 2024, which regulates water management and pollution prevention.

The new Law on Environment also introduces carbon emission quotas for manufacturing companies, requiring them to reduce greenhouse gas emissions and allowing for trading of carbon credits.

Lastly, green incentives provide financial benefits for projects that reduce environmental harm, including tax incentives, land benefits, lower interest rates, and subsidies for eco-friendly products and services.