The value added tax, simply known as the VAT, is one of the most important indirect levies in Vietnam. In order to collect it, a company must first go through VAT registration in Vietnam. This requirement applies to both local and foreign companies.
Below, our lawyers explain how to apply for a VAT number in Vietnam. We are at your disposal with various legal services, among which tax and VAT registration which is part of the business incorporation package we provide to foreign investors.
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VAT registration in Vietnam for foreign companies
Foreign companies have two ways of expanding their companies in Vietnam – through subsidiaries and branch offices. Both business forms are required to register for VAT in Vietnam as soon as they are incorporated, as the country does not provide for a voluntary procedure.
The Vietnamese VAT number can be obtained within 10 days of the business registration certificate’s issuing. Here are the documents to draft in order obtain a VAT certificate in Vietnam:
- the standard application form;
- information about the company (the tax identification code and business license);
- details about the parent company.
There is no need for foreign companies to appoint local representatives when or after completing VAT registration in Vietnam.
Our immigration lawyers in Vietnam can come to the aid of foreign investors who want to establish companies and settle here in order to run their businesses.
How to register for VAT in Vietnam as a local company
The VAT number in Vietnam is the same as the company’s tax identification number and it must be registered within 10 days just like in the case of foreign companies. In order words, the tax authorities here do not make any differences between the obligations of domestic and overseas enterprises to register for this tax. Furthermore, there is no voluntary procedure or minimum taxable amount that requires VAT registration.
Our law firm in Vietnam can offer assistance in registering for VAT. We are also at your disposal with support in immigration to Vietnam if you want to establish yourself here.
VAT rates in Vietnam
Here are the rates of the VAT in Vietnam, as applied by the General Tax Department:
- the standard rate for most taxable products and services is 10%;
- a 15% rate applies to luxury products;
- a 5% reduced rate is levied on foodstuff, transportation, medical supplies, agricultural services and products;
- a 0% rate applies to exports and related services, agricultural machinery, fertilizers, and animal feed.
Feel free to address our lawyers in Vietnam for information on how to open a company and register for taxation and VAT in this country.
VAT compliance in Vietnam
After completing the procedure for VAT registration in Vietnam, a company must comply with certain requirements.
Monthly VAT returns in Vietnam must be filed and paid by the 20th of the following month. Quarterly reporting is also permitted for taxpayers with an annual revenue of less than VND 50 billion in the previous year, as well as for new companies. In their case, the income must be declared and paid by the 30th of the following month at the end of each quarter. The monthly or quarterly VAT rate must be consistently applied throughout the whole fiscal year.
According to the Law on Tax Administration, VAT taxpayers who have a place of business in a municipality or province with a suitable IT infrastructure must submit their tax returns and/or report their VAT online.
If you need legal or tax-related support, do not hesitate to contact our lawyers in Vietnam. We are at your disposal with tailored solutions for tax and VAT registration in Vietnam.