Guide to Vietnam VAT Taxability and Rates
Updated 2 months ago
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This article explains how VAT applies to SaaS and digital services sold to customers in Vietnam, including how the buyer and seller's location affects the tax treatment.
Standard and Reduced VAT Rates
Category | VAT Rate |
|---|---|
Standard rate | 10% |
SaaS / Software (July 1, 2025 – December 31, 2026) | 8% |
Exports / Supplies to bonded zones | 0% |
The 8% reduced rate applies to software and SaaS under Decree 174/2025/NĐ-CP, as long as the service is normally 10%-rated and not in an excluded category (such as telecom services or products subject to special consumption tax).
B2B SaaS Sales
When selling to a Vietnamese business customer (B2B), the seller charges VAT at the applicable rate (currently 8% for SaaS). Vietnam does not apply a domestic reverse charge for digital services. This means:
If the seller is registered, the seller charges and remits VAT.
If the seller is not yet registered, the buyer must self-assess and pay VAT on the imported service.
Invoices must be issued with VAT included.
B2C SaaS Sales
When selling to an unregistered Vietnamese consumer (B2C), the seller is also required to charge VAT at the applicable rate. There is no reverse charge mechanism for B2C transactions. Invoices must be issued with VAT included.
Cross-Border Transactions
Scenario | VAT Treatment |
|---|---|
Non-resident selling digital services to a Vietnam buyer (B2B or B2C) | Seller must register and charge 8% VAT |
Resident seller exporting digital services outside Vietnam | Zero-rated (0%) |
Resident seller exporting goods outside Vietnam | Zero-rated (0%) |
Reverse Charge Summary
Vietnam does not have a standard domestic reverse charge for SaaS or digital services. The seller is responsible for registration and for charging VAT on all taxable supplies, whether to businesses or consumers. The only exception is when the non-resident seller has not registered — in that case, a registered Vietnamese business buyer must self-assess and pay VAT directly.
Determining Buyer Status (B2B vs. B2C)
If the buyer provides a valid Vietnam VAT ID (tax code), the transaction is treated as B2B. If no VAT ID is provided, the transaction is treated as B2C. Both are taxed at the same rate (8% for SaaS during the temporary reduction period).
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