Vietnam VAT Calculator (VND)
If you live or do business in Vietnam, you will meet VAT — value-added tax, written thuế GTGT (giá trị gia tăng) on local invoices. It is an indirect tax on the value added at each stage of supply, ultimately borne by the final consumer. A Vietnamese VAT invoice (hoá đơn GTGT) almost always shows three lines: the net amount (tiền hàng, the price before tax), the VAT amount (tiền thuế GTGT), and the gross total (tổng cộng tiền thanh toán, what you actually pay). This calculator converts between those three figures in either direction.
You will use it in two situations. Adding VAT turns a pre-tax price into the total to charge: a 15.000.000 VND net invoice at the 10% standard rate carries 1.500.000 VND of tax and totals 16.500.000 VND. Extracting VAT works backwards from a tax-inclusive total: a 22.000.000 VND receipt splits into 20.000.000 VND of net value and 2.000.000 VND of VAT. The single most common error foreigners (and locals) make is multiplying the gross total by 10% to "find the VAT" — that overstates the tax, because the rate applies to the net price, so you must divide the gross by 1.1 instead (the methodology section shows why).
The rate is an input you choose, not a fixed constant. The 10% standard rate under Vietnam's Law on Value-Added Tax covers most goods and services. A 5% rate applies to certain essential categories, a 0% rate mainly to exports, and at various times the government has introduced a temporary reduction to 8% for selected categories through separate resolutions. Because that 8% reduction is time-limited rather than permanent, this tool lets you pick 0/5/8/10% — always match the rate to the category and the rule in force on the invoice date rather than defaulting to 10% for everything.
How VAT is calculated
Two directions: adding and extracting
Let the rate be r as a decimal (10% = 0.10). The calculator works with three quantities: the net (price excluding VAT), the VAT amount, and the gross (price including VAT).
Add mode — you enter the net (pre-tax) amount:
| Step | Formula |
|---|---|
| VAT amount | tax = net × r |
| Gross total | gross = net + tax = net × (1 + r) |
Extract mode — you enter the gross (tax-inclusive) total:
| Step | Formula |
|---|---|
| Net amount | net = gross ÷ (1 + r) |
| VAT amount | tax = gross − net |
Why you divide, not multiply, to extract VAT
Multiplying a gross total by 10% overstates the VAT, because the 10% is charged on the net price, not on the gross. To reverse it you divide by 1.1. Example: a 22.000.000 VND gross invoice contains 2.000.000 VND of VAT (gross ÷ 1.1 = 20.000.000 VND net, then gross − net). Multiplying 22.000.000 × 10% would wrongly give 2.200.000 VND. As a share of the gross, VAT at 10% is r/(1+r) = 9.09% of the total, not 10%.
Vietnamese VAT rates (treated as an input)
- 10% — the standard rate under the Law on Value-Added Tax, covering most goods and services.
- 5% — certain essential goods and services listed in the law.
- 0% — mainly exported goods and services.
- 8% — a temporary reduction applied to selected categories by separate resolutions in some periods. It is not a permanent rate; confirm what is in force when the invoice is issued.
Source: Vietnam's Law on Value-Added Tax and its implementing guidance. Because the category lists are detailed, the tool asks you to select the rate rather than assuming one for you.
What the tool does not do
It performs a single-rate add or extract only. It does not handle multi-line invoices mixing several rates, it does not compute a business's input VAT credit (deductible VAT), and it is not a substitute for accounting software or an e-invoice system. Treat the output as a quick reference figure.
Worked example 1: Extract 10% VAT from a 22.000.000 VND gross invoice
You receive a tax-inclusive invoice of 22.000.000 VND at the 10% standard rate and need the net and VAT lines for your records.
| Quantity | Calculation | Amount |
|---|---|---|
| Net (excl. VAT) | 22.000.000 ÷ 1.10 | 20.000.000 VND |
| VAT (10%) | 22.000.000 − 20.000.000 | 2.000.000 VND |
| Gross (incl. VAT) | — | 22.000.000 VND |
So of the 22.000.000 VND you paid, 2.000.000 VND was VAT. Note that multiplying the 22.000.000 VND total by 10% (2.200.000 VND) would be wrong — the correct VAT is 2.000.000 VND because 10% applies to the 20.000.000 VND net, not the gross.
Worked example 2: Add 10% VAT to a 15.000.000 VND net price
You are invoicing a client 15.000.000 VND before tax and must show the VAT and total.
| Invoice line | Amount |
|---|---|
| Net amount (excl. VAT) | 15.000.000 VND |
| VAT (10%) | 1.500.000 VND |
| Total payable | 16.500.000 VND |
The client pays 16.500.000 VND; the 1.500.000 VND of VAT is collected on the state's behalf and remitted, not kept as revenue. If the category qualified for the temporary 8% rate instead, the VAT would fall to 1.200.000 VND and the total to 16.200.000 VND — re-run the calculator with the rate that actually applies to your goods.
Frequently asked questions
What is VAT (GTGT) in Vietnam?
VAT (value-added tax, thuế GTGT in Vietnamese) is an indirect tax on the value added at each stage of supply, ultimately paid by the final consumer. Sellers collect it on the invoice and remit it to the state. On a Vietnamese VAT invoice it appears as a separate line between the net amount (tiền hàng) and the gross total (tổng cộng).
What are the VAT rates in Vietnam?
Under the Law on Value-Added Tax the standard rate is 10%, covering most goods and services. There is a 5% rate for certain essentials and a 0% rate mainly for exports. In some periods the government has also applied a temporary reduction to 8% for selected categories via separate resolutions — this is not permanent. Pick the rate that matches your goods in the calculator.
How do I extract VAT from a tax-inclusive total?
Divide the gross by (1 + rate) to get the net, then subtract to get the VAT. At 10%: a 22.000.000 VND invoice → net = 22.000.000 ÷ 1.1 = 20.000.000 VND, VAT = 2.000.000 VND. Do not multiply the total by 10% (that gives 2.200.000 VND, which is wrong) because the 10% applies to the net, not the gross.
How much is 10% VAT on a 15,000,000 VND net price?
VAT = 15.000.000 × 10% = 1.500.000 VND, and the total payable is 15.000.000 + 1.500.000 = 16.500.000 VND. If the category qualified for the temporary 8% rate, the VAT would be 1.200.000 VND and the total 16.200.000 VND instead.
Why not just multiply the total by 10% to find the VAT?
Because the 10% rate is charged on the net (pre-tax) price, not on the tax-inclusive total. Expressed as a share of the gross, the VAT is only r/(1+r) = 9.09% of the total. For a 22.000.000 VND invoice the correct VAT is 2.000.000 VND, not 2.200.000 VND — a frequent bookkeeping mistake.
Is the 8% reduced rate still in effect?
The 8% rate is a temporary reduction applied to selected categories by National Assembly resolutions in particular periods — not a permanent statutory rate, and depending on the date it may have expired or been extended. The calculator still offers 8% so you can compute it when needed, but always check the resolution in force on the invoice date before applying it.
What is the difference between 0% VAT and VAT-exempt?
Zero-rated supplies (mainly exports) are still within the VAT system, so the business can credit or reclaim input VAT; exempt supplies carry no output VAT and generally cannot reclaim input VAT. This calculator only adds or extracts VAT at the rate you select (including 0%) and does not model a business's input VAT credit.