Vietnam: About Value Added Tax (VAT) and Corporate Income Tax (CIT)

Last updated: December 2024

On September 29, 2021, the Vietnam Ministry of Finance issued Circular 80/2021/TT-BTC, providing guidance on the implementation of the Law on Tax Administration and Government Decree 126/2020/ND-CP. This circular took effect on 1 January 2022.


To ensure compliance with local tax law updates and streamline our practices in the Vietnamese market, TikTok Pte. Ltd. ("TikTok") has registered for Vietnam tax. TikTok is now responsible for tax filings in Vietnam for the supply of TikTok Ads to all customers whose billing country is set as Vietnam in their TikTok Ads Manager Account.

Effective 1 January 2024, we will collect a 5% Value Added Tax (VAT) on top of your spending for all purchases conducted in Vietnam. TikTok will be solely responsible for reporting, and remitting Vietnamese Digital Taxes (VAT and Corporate Income Tax) on your purchases.


For your reference, the standard VAT rate is 5%. The tax base for calculation is TikTok's revenue generated from purchases in Vietnam. Below is an example of the tax calculation:

Invoice amount

1,000

VAT charge (5%)

50

Total payment

1,050


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 as a VAT-registered business. Please enter your valid Tax Code in the Tax ID field. Your Tax Code will then be included on your invoices. Note that the Tax Code must be in the format of a 10 or 13 digit number. Kindly ensure that your Tax Code can be verified against the National Business Registration Portal of Vietnam. You are solely responsible for ensuring 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.


Note: TikTok is unable to advise you on tax matters. Please contact your local tax advisor or tax authorities for any tax questions that you may have in relation to your ads purchase. You are fully liable for any tax liability that you are required by law to report or withhold and pay.