How VAT works for clients in Vietnam

Articles in this section

Disclaimer:

This article is for general information only and should not be considered tax advice. It may not be updated in real time and may not reflect recent changes. We strongly encourage you to consult your country’s tax authority or your tax advisor with questions related to your specific situation.

What is Vietnam VAT and why does Upwork collect it?

Value-added tax, or VAT, is a tax on goods or services, including our services to you.

Vietnam requires Upwork to collect VAT and send it to the government of Vietnam unless you provide a valid VAT ID, and we’re required to comply with the tax laws of countries where we do business.

What does Vietnam VAT apply to for clients on Upwork?

Here's some examples of what VAT applies to:

Marketplace fee
Contract Initiation fee
Conversion fee
Recruiter fee

Since we charge tax when your government requires us to, this tax may change or apply to additional services at any time.

What's the Vietnam VAT rate for clients?

It's 10% of the cost of the service being taxed.

Example: On $100 USD in Marketplace fees, you'll pay $10 in tax, for a total of $110.

You’ll see the estimated amount of tax when you check out and on your invoices and in your transaction history.

Do I have to provide my Vietnam VAT ID to Upwork?

No, but if you provide a valid VAT ID in your tax information, we will not have to collect this tax from you. We'll also display the VAT ID you provide on your invoices.

What is the Vietnam VAT ID format?

It's a unique ID that you may request from your government by registering for VAT in Vietnam — not your tax ID. It has 10 numbers and it should look like this, for example: 9999999999.

To learn more, visit the Vietnam tax authority’s website.

How do I enter my Vietnam VAT ID on Upwork?

Go to Account settings (desktop) or Settings (mobile) > Tax information
Click on the pencil icon to enter or edit your info
Select Save

Once you enter your info, we’ll check whether the VAT ID you provide is valid and give you a prompt response when you enter it. You can also see your VAT ID status on your tax information page.

Does Vietnam offer any exemptions for VAT?

Vietnam does not offer any applicable exemptions from VAT on services that Upwork provides, but you can avoid VAT charges being collected by Upwork by providing a valid VAT ID.

How do location and information changes affect Vietnam VAT?

If you change locations and update your tax residence in your tax information, we'll automatically adjust your VAT to correspond with the rates in your new country of residence or stop collecting if there is no VAT, or a similar tax, in your new country. You may have to enter a new VAT ID.
If you make other changes to your information, such as changing your legal name, you may have to revalidate your VAT ID.

Who does Upwork collect VAT from in Vietnam?

Vietnam’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Vietnam and have not provided us with a valid VAT ID.

Freelancers also pay an additional marketplace facilitator VAT.

Do you still collect VAT even if I’m only living in Vietnam temporarily?

As long as your tax residence is set to Vietnam, we’re required to collect them. If you move, update your tax information — we’ll adjust accordingly.

If I pay Vietnam VAT before I enter a valid Vietnam VAT ID, will you refund that money once I enter it?

No, we remit that money directly to the Vietnam government and cannot refund it. You may be able to claim a credit with your tax authority for what you paid. We recommend that you consult with your government’s tax authority or your tax advisor for more information.