Understanding Vietnam VAT Registration Triggers and Thresholds

One of the most important things to know about Vietnam VAT is that there is no revenue threshold for registration. This applies to both resident and non-resident businesses.

When Registration Is Required

For resident businesses (with a physical presence or legal entity in Vietnam)

Registration is required upon commencing taxable business activity. There is no minimum revenue to cross — any legal entity operating in Vietnam must register from the start.

For non-resident foreign suppliers (without a permanent establishment in Vietnam)

Registration is triggered by the first taxable sale to a Vietnamese customer. There is no transaction count threshold, no revenue threshold, and no grace period. Obligation begins immediately.

Economic Nexus

Vietnam's economic nexus rules for non-resident suppliers became effective on January 1, 2022. From that date, all foreign digital service providers selling to Vietnamese customers must register and collect VAT, regardless of sales volume.

Physical Nexus

A physical presence in Vietnam also triggers VAT obligations. Situations that establish physical nexus include:

• Opening a permanent office, branch, or warehouse in Vietnam

• Having employees, contractors, or agents physically operating in Vietnam

• Participating in trade shows or exhibitions in Vietnam where sales are made

• Using third-party warehousing or fulfillment centers in Vietnam

• Maintaining servers or IT infrastructure in Vietnam that support revenue-generating activity

Attending a trade show or exhibition in Vietnam without making any sales does not establish physical nexus.

Marketplace Sales

If a marketplace or digital platform collects the full payment on behalf of a seller and acts as the deemed supplier, the marketplace is responsible for collecting, remitting, and reporting VAT. In that case, the underlying seller is relieved of VAT collection obligations for those specific transactions. However, the seller must still register independently if it makes any direct sales outside the marketplace.

Small Business Exemption

There is no small business exemption available to foreign non-resident digital service suppliers. For resident business individuals and households, an exemption exists for those with annual revenue below VND 200 million (effective January 1, 2026), but this is outside the scope of the B2B and B2C SaaS use case.

Key Takeaway

If you are a non-resident SaaS company making your first sale to a customer in Vietnam, you are required to register for VAT. There is no waiting period and no minimum revenue. Kintsugi can help you submit your VAT registration before or at the time of your first Vietnam sale.

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