VAT Registration in Vietnam for Foreign Companies

VAT registration in Vietnam is crucial for foreign companies to ensure compliance with Vietnamese tax laws, avoid penalties, and conduct business smoothly in the Vietnamese market. This guide explains the GST/VAT/HST/CST registration in Vietnam, and procedures for foreign companies seeking VAT registration in Vietnam.

Why Non-Resident Firms Must Register for VAT/GST in Vietnam

Non-compliance with GST/VAT/HST/CST registration in Vietnam can result in severe penalties, including fines up to VND 25 million for late filing, blocked marketplace access, and customs holds on imports. Foreign suppliers who fail to register may face administrative violations ranging from VND 2-25 million, depending on the delay period, plus interest charges of 0.03% per day on unpaid VAT amounts. 

The Vietnamese government has actively enforced these regulations; for instance, in December 2024, the trade ministry ordered Chinese online retailer Temu to suspend its operations in Vietnam after missing a registration deadline. Such enforcement underscores the importance of timely VAT/GST registration to maintain business continuity and compliance.

When Does a Foreign Business Need to Register? Key Triggers

Foreign companies must register for VAT/GST in Vietnam when their activities establish a taxable presence or involve specific transactions that trigger VAT obligations. Key scenarios include:

• Digital services and e-commerce: Foreign suppliers providing digital services, e-commerce activities, or operating digital platforms to Vietnamese consumers must register, regardless of physical presence
• Import and local sales: Companies importing goods into Vietnam or establishing local inventory/warehouses trigger immediate registration requirements
• Marketplace facilitation: Businesses operating through Vietnamese e-commerce platforms or facilitating transactions for other sellers require registration
• Trade shows and temporary activities: Participating in Vietnamese trade exhibitions or conducting temporary business activities may require registration

Country-Specific Examples:

• UK digital services company: A British software provider offering SaaS solutions to Vietnamese businesses must register for VAT upon first sale, as the nil threshold means immediate registration is required.
• Chinese e-commerce seller: An online retailer from China selling directly to Vietnamese consumers through local platforms must register and collect 10% VAT starting July 2025.

Understanding these triggers helps foreign businesses comply with Vietnamese tax obligations before commencing operations.

Registration Thresholds & Nexus Tests

Vietnam operates a nil threshold system for GST/VAT registration for non-resident businesses Vietnam, meaning foreign companies must register immediately upon conducting any taxable business activity in the country. There is no minimum turnover requirement that allows businesses to operate without registration. 

This mandatory registration applies to all foreign suppliers engaging in e-commerce, digital services, or importing goods into Vietnam. Special rules apply to digital services where foreign suppliers without permanent establishments face a 10% VAT rate from July 2025, increased from the previous 5% rate.

Vietnam VAT/GST Number Format Explained

You must understand the format of the VAT number before you register for GST/VAT online Vietnam. The Vietnamese Tax Identification Number (TIN) comprises either 10 or 13 digits, structured as follows:

Sample TIN numbers include:

• For enterprises: 0314409058
• For branches or dependent units: 0314409058-001

Common mistakes include omitting the hyphen, incorrect placement of digits, or using invalid characters. Ensuring the correct format is crucial for successful registration and compliance.

Is a Local Tax Agent or Fiscal Representative Required?

Vietnam does not mandate foreign companies to appoint local tax agents or fiscal representatives for GST/VAT registration for foreign companies in Vietnam. However, appointing a qualified Vietnamese fiscal representative can significantly simplify compliance procedures, including VAT registration, filing returns, and communicating with tax authorities. 

These representatives must be certified by the General Department of Taxation and can handle various accounting procedures beyond VAT obligations. No bank guarantees or bonds are required for representative appointments, making this an accessible option for streamlining operations.

Special Schemes & Simplifications

Managing VAT when importing into Vietnam can be difficult, but international businesses can simplify the process by using several schemes. Key options include:

• E-commerce Simplified Scheme: Digital platform operators can register through dedicated portals with streamlined procedures for tax declaration and payment.
• Investment Project Incentives: Companies with investment projects exceeding VND 300 million in input VAT can access fast-track refund processing within 6-40 working days.
• Small Business Exemptions: Business individuals and households with annual revenue below VND 200 million (effective January 2026) qualify for VAT exemptions.
• VAT Reduction: A temporary 2% VAT reduction (from 10% to 8%) has been extended until December 31, 2026, for certain goods and services.
• On-the-Spot Export and Import Scheme: Goods sold to foreign entities and consumed outside of Vietnam may qualify for a 0% VAT rate under specific conditions.

These simplified schemes help reduce administrative burdens while maintaining compliance with Vietnamese tax regulations.

Step-by-Step: How to Register for VAT/GST in Vietnam

GST/VAT/HST/CST registration in Vietnam is a crucial step for non-resident businesses engaging in taxable activities within the country. Here’s a step-by-step guide to help you through the VAT registration in Vietnam:

1. Check threshold requirements: Verify if your business activities trigger mandatory registration under Vietnam’s nil-threshold system.
2. Gather required documents: Collect the certificate of incorporation, director identification documents, proof of business activities, and bank information.
3. Complete application form: Access the online registration form through the designated tax portal for foreign suppliers.
4. Create Government Gateway Account: Register on thuedientu.gdt.gov.vn using your company details to access the electronic tax system.

5. Submit application: Upload all required documents and submit your VAT registration application through the online portal.
6. Pay registration fees: Process any applicable government fees as required by Vietnamese tax authorities.
7. Receive VAT number: Obtain your 10-digit Tax Identification Number within 10 days of successful application processing.

GST/VAT/HST/CST registration in Vietnam is a straightforward process when you follow these steps and ensure all documentation is complete and accurate.

Required Documents Checklist

Foreign companies need a comprehensive documentation for the Vietnam VAT/GST registration guide compliance:

• Certificate of incorporation: Certified copy of company registration documents from the home country jurisdiction.
• Director identification: Valid passports or national ID cards for all company directors and authorized representatives.
• Proof of business activity: Documentation demonstrating the nature and scope of planned Vietnamese operations.
• Bank account information: Official bank letters confirming company account details and financial standing.
• Power of attorney: Signed authorization for appointing local agents or representatives to handle registration procedures.
• Investment certificates: IRC or similar documents for foreign-invested enterprises establishing permanent operations.

Ensuring complete and accurate documentation prevents delays and facilitates smooth registration processing with Vietnamese tax authorities.

Processing Time & Government Fees

VAT registration applications are typically processed within 10 working days from the submission of complete documentation. The General Department of Taxation has established streamlined procedures for foreign suppliers, with most standard applications receiving approval within this timeframe. 

Currently, no specific registration fees are mandated for basic VAT registration, though companies should budget for potential administrative costs and professional service fees. Complex applications or those requiring additional documentation may experience extended processing times, making early preparation essential for timely market entry.

Post-Registration Obligations

After completing GST/VAT/HST/CST registration in Vietnam, businesses must adhere to specific ongoing obligations to ensure compliance and avoid penalties. Below is a detailed overview of these requirements:

1. VAT Filing Frequency: Businesses with annual revenue exceeding VND 50 billion must submit monthly VAT returns by the 20th of the following month. Smaller businesses may opt for quarterly filings, due by the 30th of the month after each quarter’s end.
2. Payment Deadlines: VAT payments must accompany return submissions. Late payments incur a penalty of 0.03% per day.
3. E-Invoicing Compliance: Since July 2022, all transactions require electronic invoices through Vietnam’s mandatory e-invoicing system. As of July 2025, this includes all businesses, with specific formats and digital signatures mandated.
4. Non-Cash Payment Requirements: Effective July 1, 2025, all VAT invoice payments must be made via non-cash methods, regardless of the amount, to qualify for input VAT deductions.
5. Currency Conversion: Maintain records of exchange rates used for foreign currency transactions and VAT calculations.
6. Record Keeping: Preserve all VAT-related documents and electronic records for a minimum of 10 years, as required by Vietnamese regulations.
7. Annual Reporting: Submit comprehensive annual VAT reports and undergo any required tax audits to ensure compliance.

Adhering to these obligations is crucial to avoid penalties and maintain good standing with Vietnamese tax authorities.

Claiming Input-Tax Credits & Refunds as a Non-Resident

Non-resident tax registration Vietnam entities can claim input VAT credits under specific conditions. Companies must maintain proper documentation, including valid VAT invoices, non-cash payment receipts, and proof that purchases relate to taxable business activities. 

Export-oriented businesses with uncredited input VAT exceeding VND 300 million qualify for refunds within 6-40 working days, though complex cases may face longer processing times. Common rejection reasons include incomplete documentation, invalid invoices, or inability to verify seller VAT compliance. The reverse-charge mechanism applies to certain B2B services, potentially reducing registration requirements for specific transaction types.

Penalties for Late Registration or Non-Compliance

Vietnamese authorities impose significant penalties for VAT non-compliance that escalate based on violation severity. Failure to register for VAT, referred to as GST/VAT/HST/CST registration in Vietnam, can lead to significant financial consequences. Key penalties include:

• Late registration fines: Vietnam imposes penalties for late tax registration, which can range from VND 1 million to VND 10 million, depending on the delay period.
• Filing penalties: Administrative fines range from VND 2-25 million for late VAT return submissions, with additional daily interest of 0.03%.
• Import restrictions: Non-compliant businesses face customs holds and potential import blocks until tax obligations are resolved.
• Marketplace suspensions: E-commerce platforms may suspend non-registered foreign sellers from conducting business activities.
• Director liability: Company directors may face personal liability for repeated or willful non-compliance with VAT obligations.

Recent enforcement examples include significant penalties imposed on foreign digital platforms for delayed registration, highlighting authorities’ increased focus on cross-border tax compliance. To avoid these severe penalties, businesses must ensure timely and accurate GST/VAT/HST/CST registration in Vietnam and adhere to all filing requirements.

Deregistration & VAT/GST Number Changes

Companies seeking to cancel their Vietnamese VAT registration must follow formal deregistration procedures. The process requires settling all outstanding tax liabilities, filing final VAT returns, and obtaining tax clearance certificates before official cancellation. Businesses must also notify the tax authorities of any changes to registration details, company structure, or business activities within prescribed timeframes.

Deregistration typically takes 3-6 months and involves comprehensive tax audits to ensure all obligations are fulfilled. Companies must maintain records and documentation even after deregistration to address any future inquiries from Vietnamese tax authorities.

Conclusion

Vietnam’s VAT registration requirements for foreign companies reflect the country’s commitment to creating a fair and transparent tax environment. With mandatory registration from the first transaction and evolving digital tax obligations, foreign businesses must prioritize early compliance planning..

Commenda specializes in helping international businesses navigate Vietnamese tax compliance efficiently. For comprehensive support with your Vietnam VAT registration and ongoing obligations, book a free demo with Commenda to explore tailored solutions for your business needs.

FAQs: Foreign Business VAT/GST in Vietnam

Q. Do non-resident remote sellers need to register for VAT/GST in Vietnam if they only supply digital services?

Yes, foreign suppliers must register for VAT/GST immediately upon the first transaction.

Q. What is the sales threshold that triggers mandatory foreign business GST registration in Vietnam?

There is no sales threshold; VAT registration is required from the first taxable transaction.

Q. How long does the VAT number application process take for a company with no local branch?

VAT registration typically processes within 10 working days.

Q. Can I reclaim input tax in Vietnam without a resident tax representative?

 Yes, input VAT credits can be claimed without a resident representative.

Q. Which documents are required to open a non-resident VAT/GST account online?

Required documents include a certificate of incorporation, passports, proof of business activity, and a power of attorney if using an agent.

Q. What penalties apply for late or missed GST filings by overseas entities?

Penalties range from VND 2-25 million plus daily interest on unpaid amounts.

Q. Is there a simplified or low-value import scheme for cross-border e-commerce sellers?

Vietnam eliminated the low-value import exemption in February 2025, requiring VAT on all imports.

Q. How do currency conversions affect VAT payments from foreign bank accounts?

Companies must convert foreign transactions to VND for VAT calculations and payments.

Q. Can multiple marketplaces share one Vietnam GST registration, or must each seller register separately?

Each foreign seller must register separately, and marketplaces cannot substitute for sellers’ VAT obligations.

Q. What are the annual costs of appointing a fiscal representative in Vietnam, and can Commenda handle this role?

Fiscal representation is not required, but Commenda can act as an agent for you.

Q. How do I cancel or deregister my Vietnam VAT number if my turnover drops below the threshold?

Deregistration involves a formal application, tax clearance, and final returns processing, typically taking 3-6 months.

Q. Does the reverse-charge mechanism remove the need for GST registration on B2B services?

The reverse-charge mechanism applies to specific transactions but does not eliminate the need for GST registration.