Quick answer
VAT = net price × rate, and net price = gross price ÷ (1 + rate). An item at 1,500,000 before 10% VAT carries 150,000 VAT, so 1,650,000 is payable; going the other way, 1,650,000 including 10% VAT is 1,500,000 net. In Vietnam most goods taxed at 10% are temporarily taxed at 8% from 1 July 2025 to 31 December 2026.
What is VAT and how is it calculated?
Add VAT to net prices or extract it from VAT-inclusive prices, for one item or a whole invoice where each line has its own rate (0, 5, 8, 10% or any other). Each line is rounded to a whole unit the way Vietnamese e-invoices are, with a per-rate summary and the total written out in words.
How to calculate VAT
- 1
Choose whether your prices are before VAT (add tax) or already include VAT (extract tax).
- 2
Enter the amount and VAT rate on the first line. The item name is optional.
- 3
Click “Add line” for every item with a different rate; each line shows its net, VAT and gross amount straight away.
- 4
Check the summary: totals, the breakdown by rate and the amount in words. Copy the totals or the table into a spreadsheet or email.
Vietnam VAT rates in 2026
| Rate | Applies to | Legal basis |
|---|---|---|
| 0% | Exported goods and services, international transport and other cases listed in the law | VAT Law No. 48/2024/QH15, Art. 9 |
| 5% | Clean water, medical equipment, scientific books, some unprocessed farm products and other listed items | VAT Law No. 48/2024/QH15, Art. 9 |
| 8% | Goods and services normally at 10%, cut by 2 points, except excluded groups | Resolution 204/2025/QH15; Decree 174/2025/ND-CP (1 Jul 2025 – 31 Dec 2026) |
| 10% | Everything not covered by the rates above, including the excluded groups | VAT Law No. 48/2024/QH15, Art. 9 |
The calculator only does the arithmetic. Which rate applies to your goods depends on the lists in the law, resolution and decree above.
Formulas
| You have | Formula | Example (8%) |
|---|---|---|
| Net price | VAT = net × rate; gross = net + VAT | 2,000,000 → VAT 160,000 → 2,160,000 |
| Gross price | Net = gross ÷ (1 + rate); VAT = gross − net | 1,080,000 → net 1,000,000, VAT 80,000 |
| VAT amount only | Net = VAT ÷ rate | 80,000 ÷ 8% = 1,000,000 |
Examples
Quoting a client
A 15,000,000 service at 8% VAT: 1,200,000 VAT, 16,200,000 payable.
Backing out VAT
A receipt total of 1,650,000 including 10% VAT is 1,500,000 net and 150,000 VAT. Taking 10% off the gross (1,485,000) would be wrong.
Mixed rates
Equipment at 8% plus a financial service at 10% (not eligible for the cut): add two lines and the summary separates each rate, like the footer of an e-invoice.
Exports
Exported goods at 0%: no VAT is added, but the invoice still shows a 0% rate.
Common problems
- Removing VAT by subtracting 10%.
- VAT is charged on the net price, so divide by 1.1 (or 1.08). Subtracting 10% of the gross always gives a slightly wrong result.
- Totals are off by a unit compared with invoicing software.
- This tool rounds VAT per line. If your software rounds once on the total, enter the invoice as a single line.
- Applying 8% to banking, telecoms or real estate.
- Those groups are excluded from the cut under Resolution 204/2025/QH15 and stay at 10% where applicable.
How long does Vietnam's 8% VAT rate last?
Resolution 204/2025/QH15, passed by the National Assembly on 17 June 2025, cuts the VAT rate on goods and services normally taxed at 10% by two percentage points to 8%, from 1 July 2025 until 31 December 2026. Decree 174/2025/ND-CP of 30 June 2025 sets out the details and the excluded groups, which include telecoms, finance, banking, securities, insurance, real estate, metals, mining products (except coal) and goods subject to special consumption tax (except petrol).
Rounding
Vietnamese invoices are stated in whole đồng. The calculator rounds each line's VAT to the nearest unit (halves round up) and sums the lines. When extracting VAT, the net amount is rounded first and VAT is the remainder, so net plus VAT always equals what you typed.
Glossary
- VAT (GTGT)
- Value added tax, charged on the value added at each stage and borne by the final buyer.
- Net price
- The price before VAT, which the tax is calculated on.
- Gross price
- The price including VAT.
- Rate
- The percentage applied to the net price: 0%, 5% or 10% under the law, 8% under the temporary cut.
Frequently asked questions
How do I get the price before 10% VAT?
Divide by 1.1: 1,650,000 ÷ 1.1 = 1,500,000. For 8%, divide by 1.08.
Is the 8% rate still in force in 2026?
Yes, until 31 December 2026 under Resolution 204/2025/QH15, for goods and services outside the excluded groups.
Can one invoice have several rates?
Yes. Each line carries its own rate and the summary splits totals by rate.
Can I use it for other countries?
Yes, pick “Other” and type any rate, e.g. 20% for UK standard-rated goods. The maths is the same everywhere.
Is my data stored?
No. Everything is calculated in your browser.
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