Posted 13.05. 2020 by Cekindo / Last update on 22.01. 2021
Value Added Tax, or VAT, is one of the taxes that a consumer pays in Vietnam when they purchase goods and services for production, consumption, and trading. The VAT applies to goods and services purchased from foreign sources as well. However, there are exempted goods or services that attract VAT.
The concept of a VAT is that the tax is imposed on the value added to the goods or services at each production stage, from raw materials to manufacturing to distribution to end consumers.
The rate of the VAT depends on the type of goods or services you sell. Therefore, as a business owner, you are also a VAT middle man who collects the VAT from the customers and then pays it forward to the government.
Entreprises and organisations that trade and import goods and services into Vietnam are required to register for VAT immediately once they have received their business license. No registration threshold is applicable in this case.
Monthly VAT in Vietnam must be filed and submitted by the 20th of the following month; quarterly VAT in Vietnam is allowed for taxpayers with turnover of less than VND 50 billion in the previous and it must be declared and paid by the 30th of the following month at the end of each quarter. Annual reports of VAT in Vietnam may also be necessary.
Please note that all tax invoices must be issued. At the moment, however, electronic invoices (e-invoices) are still not acceptable by Vietnam’s tax authorities.
In general, the standard rate of VAT in Vietnam is set at 10%. A 5% reduced VAT rate applies to specific food products and there are VAT-exempted goods and services and imports as well.
There are two methods to calculate the VAT, the credit method and the direct method:
Refunds of VAT in Vietnam are available only when taxpayers meet certain criteria:
Cekindo provides a wide selection of taxation outsourcing services for our clients in Vietnam.
Our outsourcing solutions in Vietnam aid small-medium enterprises, as well as numerous prominent firms. Apart from being considered as one of the most reputable taxation outsourcing providers in Vietnam, we have also built a large and prominent client base in all Vietnamese provinces.
Furthermore, Cekindo’s outsourcing services consist of handling and supporting business operations including bookkeeping, payroll processing, invoice processing, and other critical accounting functions.
Cekindo is strategic, dedicated, and progressive, offering customised services to strengthen your business’ competitive positioning and financial health to achieve your business objectives.
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