How do Vietnam taxes work for freelancers on Upwork?

Why does Upwork collect taxes for Vietnam?

We’re required to comply with the tax laws of countries to do business there.

What's Vietnam VAT?

Value-added tax (VAT) is a tax on goods or services, including our services to you and your use of our marketplace platform to earn. Vietnam requires Upwork to collect and send VAT to the government of Vietnam unless you are a business and provide us with a valid VAT ID in your tax information.

What does VAT apply to in Vietnam?

Vietnam requires two types of VAT for freelancers:

• VAT that applies to purchases and services that Upwork charges you for, such as:
   
  • Membership fees
  • Connects purchases
  • Freelancer service fees
     
• Marketplace facilitator tax — a second VAT that applies to your earnings on Upwork
   

These taxes can change or apply to additional services in the future, based on what your government requires us to tax.

What are the Vietnam VAT rates?

• For VAT on purchases and service fees: 10% of the charge for the taxed service
• For the marketplace facilitator VAT: 5% of your earnings on Upwork

Example: If you earn $1000 USD and pay $100 USD in freelancer service fees, you’ll pay $50 USD in marketplace facilitator VAT on your earnings and $10 USD in VAT on your fees, for a total of $60 USD.

What is Vietnam PIT and when is it withheld?

PIT (personal income tax) is a 2% tax that Upwork is required to withhold from your earnings unless you're a business that has provided certain tax information.

We’ll automatically apply the 2% PIT on each eligible earnings transaction unless you meet all three of the following conditions:
 

• You’ve identified yourself as a business (e.g., Corporation or Partnership) in your tax information
• You provided a tax identification number (TIN) in the new required format
• You confirmed that your TIN is registered for VAT, by checking a confirmation box during submission
   

If you're missing any of these steps, PIT will be withheld from each of your earnings transactions.

Note: All individual freelancers in Vietnam are subject to PIT withholding. Only businesses may qualify for an exemption.

Where can I see the amount withheld for Vietnam’s taxes?

• You’ll see the estimated amount of VAT charged on your purchases and service fees on your invoices and in your transactions
   
• You’ll see any MFT VAT and PIT amounts withheld in your:
   
  • Transactions – look for entries labeled “Personal Income Tax” and "Marketplace Facilitator Tax"
  • Withholding certificate (annual) – As part of Vietnam’s tax requirements, we’re required to report your earnings and the taxes withheld to the Vietnamese tax authority. We make this information available to you in a Withholding Certificate
     

The MFT VAT and PIT amount won’t appear on your client invoices, but you can always view them in your financial reports.

What is the Vietnam withholding certificate?

We issue an annual withholding certificate to Vietnamese freelancers and agencies in January. This certificate:
 

• Shows total earnings and total PIT and MFT VAT withheld for the previous year
• Is issued in both English and Vietnamese
• Matches the format required by Vietnamese authorities
• Will be available on the tax forms page in your account
   

Once your certificate is available, we’ll send you a notification via email and Upwork Messages.
 

Tip: You don’t need to request this form — we’ll generate it automatically each year if you’re impacted by PIT withholding.

What's the Vietnam tax identification number (TIN) format?

• Individuals: 12-digit TIN 
• Businesses: 10- or 13-digit TIN
   

You’ll be guided to enter the correct format in the tax information form.

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

Are there any exemptions to Vietnam VAT or PIT?

Vietnam does not offer any applicable exemptions from VAT or PIT for services on Upwork, but you can avoid charges being collected by Upwork if you are a business and provide a valid VAT ID in your tax information.

What happens to Vietnam taxes if I change my location or information?

If you update your tax residence in your tax information, we'll automatically adjust what we collect to correspond with any taxes that apply in your new country. You may have to revalidate your TIN or similar ID when you change locations, or if you make other changes to your information, such as changing your legal name.

Who does VAT apply to in Vietnam?

Vietnam's VAT on purchases and service fees that Upwork charges you for apply to both clients and freelancers if they reside, have a permanent address, or are established in Vietnam. 

Marketplace facilitator VAT on earnings only applies to freelancers. 

Are Vietnam taxes charged if I’m only living in Vietnam temporarily?

Yes. We’re still required to collect VAT and PIT if your tax residence is set to Vietnam, even if you're living there temporarily. 

If you move to another country, be sure to update your tax residence in your tax information settings. We’ll automatically adjust the taxes we collect based on the rules in your new country — or stop collecting if no similar taxes apply.

Does Vietnam’s personal income tax (PIT) affect agencies too?

Yes. Agencies based in Vietnam are also subject to PIT withholding unless they submit updated tax info and qualify as a business under Vietnamese tax rules.

Disclaimer

This article is for general information only and not to be considered tax advice. It may not be updated in real time or reflect recent changes. For questions about your tax obligations, check with your local tax authority or a qualified advisor.