Upwork must collect a 10% VAT on services for users in Vietnam unless a valid VAT ID is provided. This includes membership fees, Connects, and freelancer service fees. VAT is non-refundable after remittance, but entering a valid VAT ID exempts users from charges. VAT automatically adjusts with location changes.
Examples of services that VAT applies to in Vietnam
- Membership fees, Connects purchases, and freelancer service fees
When we charge tax, it’s because your government requires us to, which means this tax may change or apply to additional services in the future.
Tax rate
In Vietnam, the VAT rate is 10% of the cost of the service being taxed. For example, if you pay $100 USD in freelancer service fees, you will pay $10 in tax, for a total of $110.
You’ll see the estimated amount of tax on your invoices and transaction history.
VAT ID
If you provide a valid VAT ID to Upwork, we will not have to collect this tax from you. You can enter or edit your VAT ID in your account’s Tax Information.
We’ll check whether the VAT ID you provide is valid and email you when we have confirmed it is valid, which usually happens right away. We’ll also email you to let you know if we are unable to validate your ID or if there is a delay.
We will display the VAT ID you provide to us on your invoices, even if the ID is not validated. You will need to update your VAT ID to change what displays on your invoice.
Your Vietnam VAT ID number is different from your tax identification number. It is a unique ID that you may request from your government by registering for VAT in Vietnam. It has 10 numbers and it should look like this, for example, 9999999999.
To learn more, visit the Vietnam tax authority’s website.
Exemption
Vietnam does not offer any applicable exemptions from VAT, but you can avoid VAT charges by providing a valid VAT ID.
Location and information changes
If you change locations and update your tax residence in your account's 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.
However, you may have to revalidate your VAT ID when you change locations.
You may also have to revalidate your VAT ID if you make other changes to your information, such as changing your legal name.
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.
Frequently Asked Questions
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.
We’re required to comply with the tax laws of the countries where we operate to continue to do business in those countries. Vietnam requires that we collect VAT on Upwork services and remit them to your government unless we have a valid VAT ID on file for you.
No, if you provide a valid VAT ID, we do not have to collect and remit VAT tax for you. To enter your VAT ID, go to your account’s Tax Information.
No. However, if you do not provide a valid VAT ID, we are required to charge you VAT and remit it to the Vietnam government.
If you provide a valid VAT ID, we will not be required to collect the tax. To enter your VAT ID, go to your account’s Tax Information.
We are still required to collect VAT even if you are only residing in Vietnam temporarily. If you move to another country, you can update your tax residence in your account's 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.
No, we remit that money directly to the Vietnam government and will not be able to 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.