Tax rates and tax levels for household businesses and individual businesses (Applied according to Circular 40/2021/TT-BTC from August 1, 2021)

List of occupations

VAT tax rate (percentage)

Personal income tax rate

1. Distribution and supply of goods

– Wholesale and retail sales of various goods (excluding goods sold by agents at fixed prices with commission);

– Bonuses, sales support, promotions, trade discounts, payment discounts, cash or non-cash support payments for contracted households;

1%

0,5 %

– Activities related to the distribution and supply of goods are not subject to VAT, do not require VAT declaration, and are subject to a 0% VAT rate according to VAT laws;

– Business cooperation activities with organizations belonging to this industry group where the organization is responsible for declaring VAT on all revenue from the business cooperation activities as prescribed;

– Bonuses, sales support, promotions, trade discounts, payment discounts, and cash or non-cash support payments for contracted households associated with the purchase of goods and services that are not subject to VAT, are not required to declare VAT, or are subject to 0% VAT according to VAT laws;

– Compensation for breach of contract, other compensation.

0,5 %

2. Services and construction that do not include the supply of materials.

– Accommodation services include: providing short-term accommodation for tourists and other visitors; providing long-term accommodation (excluding apartments) for students, workers, and similar groups; providing accommodation along with food and beverage services or entertainment facilities;

– Cargo handling services and other supporting services related to transportation such as terminal operations, ticket sales, and vehicle parking;

– Postal services, mail and parcel delivery;

– Brokerage, auction, and agency commission services;

– Legal consulting services, financial consulting, accounting, auditing; services for handling tax and customs administrative procedures;

– Data processing services, leasing of portals, information technology and telecommunications equipment; advertising on digital information products and services;

– Office support services and other business support services;

– Services include sauna, massage, karaoke, nightclub, billiards, internet, and games;

– Tailoring and laundry services; haircuts, hairstyling, and shampooing;

– Other repair services include: computer repair and repair of household appliances;

– Consulting, design, and construction supervision services for basic construction projects;

– Other services are subject to VAT calculation using the deduction method with a VAT rate of 10%;

– Construction and installation services that do not include the supply of materials (including the installation of industrial machinery and equipment);

5%

2%

– Service provision activities are not subject to VAT, do not require VAT declaration, and are subject to 0% VAT according to VAT laws;

– Business cooperation activities with organizations belonging to this industry group where the organization is responsible for declaring VAT on all revenue from the business cooperation activities as prescribed;

– Compensation for breach of contract, other compensation;

2%

– Property for rent includes:

+ Leasing of houses, land, shops, factories, and warehouses, excluding accommodation services;

+ Renting out vehicles, machinery and equipment without an operator;

+ Leasing other properties without accompanying services;

5%

5%

– Working as a lottery agent, insurance agent, or multi-level marketing salesperson;

– Compensation for breach of contract, other compensation.

5%

3. Production, transportation, services related to goods, and construction with material procurement included.

– Manufacturing, processing, and crafting of goods;

– Extraction and processing of minerals;

– Freight transport, passenger transport;

– Services accompanying the sale of goods, such as training, maintenance, and technology transfer services, are offered alongside the sale of products.

– Food and beverage services;

– Repair and maintenance services for machinery, equipment, vehicles, cars, motorcycles, and other motor vehicles;

– Construction and installation with material supply included (including installation of industrial machinery and equipment);

– Other activities subject to VAT calculation using the deduction method with a VAT rate of 10%;

3%

1,5 %

– Activities that are not subject to VAT, do not require VAT declaration, and are subject to 0% VAT according to VAT laws;

– Business cooperation activities with organizations belonging to this industry group where the organization is responsible for declaring VAT on the entire revenue of the business cooperation activity as prescribed.

1,5 %

4. Other business activities

– Production activities involving products subject to VAT under the deduction method with a VAT rate of 5%;

2%

1%

– Activities involving the provision of services subject to VAT under the deduction method with a VAT rate of 5%;

– Other activities not listed in groups 1, 2, and 3 above;