El papeleo explicado
VAT (Vietnam property): what it is, why it matters, how to obtain it
What is VAT and does it apply when I buy property in Hanoi?
VAT (thuế GTGT) rarely shows up as a separate charge when you buy in Hanoi: it's folded into a developer's advertised price for a new-build unit, and individual resales aren't subject to it at all. It becomes directly relevant once you rent the property out, when a flat 5% VAT plus 5% PIT applies to gross rental income.
VAT at a glance
Document- Vietnamese name
- Thuế giá trị gia tăng (GTGT)
- Referred to in English-language guidance simply as VAT
- Applies to
- A developer's sale price for new-build units, and any rental income you earn from your property
- Individual-to-individual (secondhand, pink-book) purchases are not subject to VAT at all
- Administered by
- Vietnam's tax authority (Tax Department, Ministry of Finance), via your local Tax Sub-Department
- Filed under the same tax code (MST) used for your registration fee
- Rate that applies to owners
- 5% flat-rate VAT on gross rental income
- Combined with 5% personal income tax on the same return — Circular 92/2015/TT-BTC
- At purchase
- Included in the contract price for new-build units — not billed separately to the buyer
- No VAT invoice is issued on a secondhand pink-book transfer
- Filing frequency
- Per lease contract, or annually under the yearly declaration option
- Filed by you or your accountant with the local Tax Sub-Department
- Required for
- Any foreign owner who leases out a Hanoi property
- Not required if you hold the unit for personal use only and never rent it out
What is VAT and when does it matter for your Hanoi purchase?
Value-added tax — thuế giá trị gia tăng, usually abbreviated GTGT — is Vietnam's nationwide indirect tax on the supply of goods and services, administered by the Tax Department under the Ministry of Finance. For a straightforward purchase from a licensed developer, VAT does not appear as a line item you pay on top of the price: it is a business tax the developer already owes on the sale and folds into the advertised contract figure. Land-use rights themselves fall outside the VAT base, and a secondhand transfer between two individuals — a pink-book resale — is not subject to VAT at all; only the seller's personal income tax (2% of the sale price) applies there.
VAT becomes something you deal with directly once you decide to lease your Hanoi property out. Rental income earned by an individual owner, resident or not, falls under the flat-rate regime set out in Circular 92/2015/TT-BTC: a combined 5% VAT and 5% personal income tax on your gross rental revenue, declared either per lease contract or on an annual basis. This is the VAT rate that actually affects a foreign owner in practice — not a rate charged at signing, but one triggered the day you start collecting rent.
How VAT applies across your purchase and ownership
⏱ Ongoing — recurring once you rent the property out
You do not "apply" for VAT the way you would a certificate — it is either already built into a developer's price, or triggered automatically once you start earning rental income. The steps below map out where VAT touches your file, so you know what to check and when, even if a lawyer or accountant handles the filings on your behalf.
- 1
Check whether VAT is included in your new-build price
⏱ Before signing
Ask your lawyer or the developer's sales team to confirm in writing that the advertised price is VAT-inclusive, and request the VAT invoice (hóa đơn GTGT) issued at signing. Secondhand pink-book purchases do not carry a VAT invoice at all — only new-build sales from a licensed developer do.
DocumentsSale & Purchase Agreement · VAT invoice (hóa đơn GTGT) — new-build only
⚠A contract that states the price ambiguously can leave VAT — and the 2% maintenance fund — added on top of the headline figure.
→ law firms - 2
Decide whether you will rent the property out
⏱ Any time after handover
VAT only becomes a recurring obligation for you personally once you lease the unit. If you plan to hold it purely for personal use, no further VAT filing is required beyond the developer's original invoice.
- 3
Register your rental activity with the local Tax Sub-Department
⏱ Before or at the start of the lease
Once you sign a lease, your accountant or property manager registers the rental activity and confirms your tax code (MST) is linked to it. This is the same filing that establishes your VAT and PIT liability on the rent.
DocumentsPassport · Lease contract · Tax identification number (MST)
⚠Renting out a unit without declaring it is a common source of penalties once the tax authority cross-checks lease registrations.
→ accounting - 4
File and pay VAT and PIT on your rental income
⏱ Per lease contract, or annually◈ 5% VAT + 5% PIT of gross rental revenue
Declare gross rental revenue and pay the combined 5% VAT and 5% PIT, either per lease contract or through the annual declaration option, whichever your accountant recommends for your situation.
DocumentsLease contract · Tax declaration form
⚠Foreign owners without a registered Vietnamese tax code cannot file — sort this out before your first rent payment is due.
→ accounting
Frequently asked questions
What is VAT in Vietnam?
VAT (thuế giá trị gia tăng, GTGT) is Vietnam's nationwide indirect tax on the supply of goods and services, administered by the Tax Department. For property specifically, land-use rights sit outside the VAT base — in practice it shows up embedded in a developer's new-build price, or as the flat 5% rate charged on rental income you earn as an owner.
Is there a 10% VAT in Vietnam?
Vietnam applies VAT nationwide to most goods and services, but land-use rights are excluded from the VAT base and a secondhand pink-book resale is not subject to VAT at all — only the seller's 2% personal income tax applies. The rate that directly affects a foreign property owner is the flat 5% VAT on rental income, combined with a matching 5% PIT.
How do I get my VAT refund?
Individual foreign buyers generally have no mechanism to reclaim VAT embedded in a developer's price — refund schemes in Vietnam are built for registered businesses reclaiming input VAT, not private buyers. If you believe VAT was charged incorrectly, for instance on a secondhand pink-book transfer, raise it with your lawyer or accountant rather than the developer.
What is the current VAT rate on rental income in Vietnam?
A flat 5% VAT applies to the gross rental income of an individual owner, filed alongside a matching 5% personal income tax under Circular 92/2015/TT-BTC. This flat-rate regime for individual lessors has not changed going into 2026.
Do I get a VAT invoice when I buy a property in Hanoi?
If you buy new from a licensed developer, yes — you should receive a VAT invoice (hóa đơn GTGT) reflecting the tax already included in the price. A secondhand purchase between individuals, transferred by pink book, does not generate a VAT invoice at all.
Can I calculate my VAT liability myself?
For rental income the arithmetic is simple — 5% VAT plus 5% PIT of your gross rent, with no deductions under the flat-rate regime — but confirming whether your revenue falls under any minimum exemption threshold, and filing it correctly, is best handled by a Vietnamese-licensed accountant.
Does VAT apply when buying a resale (secondhand) apartment?
No. Individual-to-individual pink-book transfers are not subject to VAT. The seller instead pays personal income tax of 2% of the sale price, and the buyer pays the standard 0.5% registration fee.
Sources
- Housing Law 2023 (27/2023/QH15)
- Land Law 2024 (31/2024/QH15)
- Circular 92/2015/TT-BTC — flat-rate VAT and personal income tax regime for individual lessors
- Decree 95/2024/ND-CP — implementing decree detailing application of the 2023 Housing Law
- General Department of Taxation (Tổng cục Thuế) — Vietnam's tax authority
Not sure whether VAT is already included in your contract?
Send us your Sale & Purchase Agreement, or your lease if you plan to rent the unit out. Our Hanoi advisory desk checks the VAT position and points you to a licensed accountant if you need one — no obligation, and never a substitute for your own legal advice.