Vietnam: About Value Added Tax (VAT) and Corporate Income Tax (CIT)
On September 29, 2021, the Vietnam Ministry of Finance released Circular 80/2021/TT-BTC, which provides guidance on the implementation of the Law on Tax Administration and Government Decree 126/2020/ND-CP. This Circular takes effect from January 1, 2022.
To comply with local tax law updates, TikTok Pte. Ltd. ("TikTok") has registered as a tax resident in Vietnam and is now responsible for tax filings related to the supply of TikTok Ads to all customers whose TikTok Ads Manager account billing country is set to Vietnam.
Pursuant to the Law on Value Added Tax No. 48/2024/QH15, effective from July 1, 2025, the VAT rate applicable to services provided by foreign suppliers without a permanent establishment in Vietnam delivered to organizations and individuals in Vietnam via e-commerce and digital platforms will increase to 10%.
Accordingly, all purchases made in Vietnam will be subject to a 10% VAT on the total amount. TikTok will be responsible for reporting and paying Foreign Contractor Tax (comprising of both VAT and CIT) arising from such purchases.
For your reference, the tax base is the revenue TikTok generates from purchases made in Vietnam. Below is an example of how the tax is calculated:
Account Balance | 1,000 |
VAT charge (10%) | 100 |
Total payment | 1,100 |
If you are a tax-registered organization in Vietnam, we encourage you to update your TikTok Ads Manager account settings to reflect your tax status. Please enter your valid Tax Code in the Tax ID field. Your Tax Code will then appear on your invoices. The Tax Code must be a 10 or 13 digit number and verifiable on the National Business Registration Portal of Vietnam. You are solely responsible for the accuracy and validity of the information provided. TikTok will not re-issue invoices if the information you submit is incorrect.
If you are not a tax-registered organization in Vietnam, no further action is required on your part.
We sincerely thank you for your understanding and cooperation.
Note: This document is not treated as a tax advice in any way but rather it only informs you of how TikTok will invoice you subject to your status of tax registration based on the required documents provided to us. You are fully liable for any tax liability required by law to report or withhold and pay. The Vietnamese translation of this document is for reference only and the English version of this document will prevail should there be any difference between the two versions.
