Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 10% | 5% | 0%, Exempt |
The local name for VAT in Vietnam is Thue Gia tri gia tang (GTGT).
There are basically 2 VAT rates in Vietnam:
- Standard VAT rate is 15%
- Reduced VAT rate is 5%
Recent developments
For more information about (recent) rate change developments in Vietnam, please click HERE.
Standard rate: 10%
This is in place since … Before that, the standard rate was ..%. This rate applies for all transactions that take place in .., unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Reduced rate: 5%
Examples of goods and services taxable at 5%
- Water (except for bottled water)
- Medicine and medical equipment (except for medicine included in medical service package)
- Teaching tools
- Agricultural products
- Residential housing for sale or lease
Zero rate (0%)
Examples of goods and services taxable at 0%
- Exported goods and services, including goods and services sold to overseas organizations or individuals outside Vietnam, as well as goods and services supplied to organizations or individuals in non-tariff areas
- Construction and installation carried out overseas or within export processing zones
- International transportation
Examples of exempt supplies of goods and services
The term “exempt supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction
- Raw agricultural products
- Livestock
- Aircraft, oil rigs and ships that are not yet locally produced and that are leased from overseas
- Land-use rights
- Credit activities, credit guarantees, financial leases and financial derivative services
- Capital transfers
- Securities transfers
- Life insurance services
- Health services, veterinary medicine services, including medical examination and treatment services for humans and animals
- Care services for elderly people and disabled people
- Education and vocational training
- Publication of newspapers, magazines and certain kinds of books
- Public transportation by bus and electric car
- Reinsurance services
- Technology transfers
- Public sewage services
- Foreign currency trading
- Debt transfers
- Credit card issuance
- Factoring
- Exported natural resources that are not processed or cover 51% into other products inclusive of energy cost
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on August 22, 2021.
