Vietnam VAT Calculator 2026
10% standard, with reduced rates of 8% and 5% on specified categories.
Figures last reviewed
Vietnam VAT at a glance
- Standard VAT rate
- 10% — ranked 29 of 36 covered here
- Reduced rates
- 8%, 5% — applies to specified categories only
- Compared with the average
- -6.99 pts — average across the 36 countries covered is 16.99%
- Registration threshold
- 100,000,000 VND — annual turnover above which registration becomes compulsory
- Rates verified
- 17 August 2026 — checked against the issuing tax authority
How VAT works in Vietnam
Statutory rate 10%, temporarily reduced to 8% for most goods and services until 31 Dec 2026. Telecoms, finance, banking, insurance, real estate, metals and mineral products stay at 10%.
Calculating Vietnam VAT
Start from the price excluding tax
VAT is charged on the net price. At 10%, a net VND 100 becomes VND 110.00 once VAT of VND 10.00 is added.
To work backwards, divide — never subtract
Removing VAT from a gross figure means dividing by 1.1000, not subtracting 10%. Subtracting the percentage from the gross amount understates the net price, and the error grows with the rate.
Check which rate actually applies
Vietnam applies reduced rates of 8% and 5% to specified categories. Statutory rate 10%, temporarily reduced to 8% for most goods and services until 31 Dec 2026. Telecoms, finance, banking, insurance, real estate, metals and mineral products stay at 10%. Using the standard rate on a reduced-rate supply overstates the tax.
Registration is threshold-based
Businesses with taxable turnover above VND 100,000,000 a year must register and charge VAT. Below it, registration is usually voluntary — worth doing when your customers can reclaim the tax.
Worked example at 10%
Adding and removing VAT at 10%
| Component | Adding to a net price | Removing from a gross price |
|---|---|---|
| Starting amount | VND 100.00 | VND 1,000.00 |
| VAT at 10% | (VND 10.00) | (VND 90.91) |
| Result | VND 110.00 | VND 909.09 |
So a net price of VND 100.00 in Vietnam costs VND 110.00 once VAT is added. Working the other way, a gross price of VND 1,000.00 contains VND 90.91 of VAT, leaving VND 909.09 net.
Computed from the same 10% rate the calculator applies, so this table and the calculator cannot disagree.
Countries with a similar rate
Vietnam VAT questions
What is the VAT rate in Vietnam?
The standard rate is 10%. Reduced rates of 8% and 5% apply to specified categories. That places Vietnam 29 of 36 of the countries covered here, 6.99 points below the 16.99% average.
How do I remove VAT from a price in Vietnam?
Divide the gross amount by 1.1000. At 10%, a gross VND 1,000 works back to VND 909.09 net with VND 90.91 of VAT. Subtracting 10% from the gross figure is the common mistake and gives the wrong answer.
When do I have to register for VAT in Vietnam?
Once taxable turnover passes VND 100,000,000 a year. Registering voluntarily below the threshold lets you reclaim input tax, which usually pays off if you sell mainly to other registered businesses and costs you if you sell to consumers.
Which countries have higher and lower rates than Vietnam?
Of the countries covered here, Finland has the highest standard rate at 25.5% and United Arab Emirates the lowest at 5%. Vietnam sits at 10%.