How Much VAT Applies to Website Design Services in Vietnam?

If you are asking whether website design is subject to VAT in Vietnam, the short answer is that one rate cannot be applied to every contract merely because it is called “website design.” Work that genuinely constitutes a software product or software service may be not subject to VAT, while domains, hosting, content production, advertising and other supporting services must be classified separately. For line items normally taxed at 10%, the current VAT reduction may bring the applicable rate to 8% through December 31, 2026 if the item falls within the eligible scope. This guide helps buyers understand the classifications, review a quotation and calculate the amount actually payable. It provides general information and does not replace advice from the seller’s accountant or the competent tax authority for a specific transaction.

What VAT rate applies to website design services?

There is no single VAT rate that applies to every website design engagement in Vietnam. When a contract produces a website that qualifies in substance as a software product or delivers qualifying software services, that portion may qualify as not subject to VAT. When the quote also includes services that are not software, the supplier must determine the tax treatment of each item. From July 1, 2025 through December 31, 2026, many goods and services ordinarily taxed at 10% receive a two-percentage-point reduction to 8%, except for the excluded groups specified by the current policy.

The most important distinction is that “not subject to VAT” is not the same as “subject to a 0% VAT rate.” Zero percent is a tax rate, commonly relevant to qualifying exports. Non-taxable is a legal classification of the supply itself. The two descriptions have different reporting and invoice implications. A buyer should therefore not ask the supplier to “issue a 0% VAT invoice” merely because someone said that website development was non-taxable.

A reliable quote shows at least three layers of information: the pre-tax price for every line item, the tax treatment applied to that item, and the final amount payable. A single line reading “all-inclusive website package” is not enough when the package contains development, a domain, hosting and advertising. Without a breakdown, the buyer cannot determine whether the final amount has been calculated correctly or compare it fairly with another provider’s quote.

Which rules determine VAT on website design?

Classification should begin with the legislation currently in force and the substance of the work, not with a blog post or an old official letter repeated without context. As of this article’s update on October 22, 2026, the core framework includes the current Law on Value-Added Tax, its implementing rules, digital technology industry legislation and the temporary two-percentage-point VAT reduction that remains effective through the end of 2026. The contract, acceptance record, delivered product and invoice description should all tell the same story about what was actually supplied. When a commercial label and the delivered output conflict, the transaction’s substance may matter more than the heading printed on the contract.

Software products and software services are non-taxable

Clause 21, Article 5 of the VAT Law places software products and software services, as defined by the relevant laws, in the non-taxable category. The 2026 consolidated VAT Law is an official source to review before invoicing. Effective January 1, 2026, the Law on Digital Technology Industry 71/2025/QH15 provides the current framework for digital technology products and services. Clauses 2 and 3 of Article 13 cover software products and service activities such as consulting, design, installation, integration, management, operation, warranty and maintenance of digital technology products.

That does not make every task containing the word “web” a software service automatically. The supplier must still examine the output, process, supporting documents and applicable sector classification. A project involving requirements analysis, system design, programming, databases, testing and delivery of an operating website is materially different from a standalone banner design, article upload, domain purchase on a client’s behalf or advertising campaign.

A 0% VAT rate is different from non-taxable treatment

A 0% rate may apply to an exported service, but only if all conditions relating to the recipient, place of consumption, contract, payment evidence and supporting records are satisfied. A client using a foreign email address or paying in a foreign currency is not, by itself, sufficient evidence that the service qualifies for the zero rate. Conversely, a domestic software service that is not subject to VAT should not be relabelled “0% VAT” simply to make a quotation easier to format.

The distinction also affects the seller’s input-tax treatment and both parties’ accounting. The practical rule for a buyer is straightforward: require the invoice to reflect the proper classification, do not rewrite the tax terminology, and ask an accountant to review the file before payment when the project includes overseas elements or multiple types of service.

A 10% item may qualify for the temporary 8% rate in 2026

National Assembly Resolution 204/2025/QH15 reduces VAT by two percentage points for many goods and services otherwise taxed at 10%, from July 1, 2025 through December 31, 2026. Decree 174/2025/ND-CP sets out its scope and excluded categories. Application must also be checked against Decree 181/2025/ND-CP and its amendments under Decree 359/2025/ND-CP. A taxable supporting service may therefore be charged at 8% during this period if it is not excluded and meets the applicable requirements.

Eight percent is a time-limited policy, not the permanent rate for all website-related services. A quote expected to be invoiced after December 31, 2026 must be checked against the rules then in force. This article also does not decide that every domain, hosting, content or advertising charge necessarily qualifies for 8%; that determination depends on the nature and classification of the supply and the invoice date.

Which line items should be separated in a website quote?

A website project is often a mixed package. Development may qualify as software, while infrastructure and marketing have a different character. Separating items is not a tax-avoidance technique. It accurately describes the transaction, creates clearer acceptance criteria and reduces disputes at the invoicing stage. Where a business supplies items subject to different rates but cannot determine their values separately, the law may require it to apply the highest relevant rate to the inseparable amount.

Common line item	How to assess it	Recommended evidence
Website analysis, development and delivery	Consider software-product or software-service treatment when its substance meets the relevant rules	Feature scope, source code or usage rights, test results and acceptance record
UI/UX design tied to website development	Determine whether it is a stage of software production or an independent design service	Wireframes, prototypes, specifications and their link to the software output
Domain name	Treat it as a separate item rather than inheriting the development classification automatically	Registrant, registration or renewal period and applicable fee
Hosting, VPS, server and CDN	Assess the infrastructure service separately at the time of supply	Configuration, capacity, term, service level and account owner
Copywriting, photography, advertising and SEO	Do not bundle them into software by default	Quantity, deliverables, channel and acceptance criteria
Warranty, maintenance and upgrades	Distinguish defect correction and software services from other operational support	Covered defects, support hours, version, term and exclusions

For example, “VND 12 million for everything” is not sufficiently descriptive. A better structure separates website development, one year of domain registration, one year of hosting, initial data entry, warranty and any marketing service. The buyer can then identify one-time and recurring amounts, non-taxable items and taxable items without guessing.

How to calculate the final amount on a website design quote

To answer how much one website costs, do not add one VAT percentage to the full quote out of habit. Calculate every line first, then add the results. In practical terms, the total payable equals all non-taxable line items plus each taxable item’s pre-tax price and VAT. If a quote says “VAT included,” it should still disclose the taxable value and tax amount so the buyer can reconcile it to the invoice.

Consider a hypothetical project where the seller classifies VND 10,000,000 of website development as a non-taxable software service. Hosting costs VND 2,000,000 and initial content costs VND 1,000,000; both are assumed, only for this example, to be eligible for the 8% rate in 2026. VAT on those two items is VND 240,000, and the total payable is VND 13,240,000. This is an illustration of the arithmetic, not RiverLee pricing and not a tax ruling for another company’s file.

If the same taxable items did not qualify for the reduction and were taxed at 10%, VAT would be VND 300,000 and the total would be VND 13,300,000. The difference looks modest in this small example but can become material in a larger or multi-year contract. A quote should therefore state its validity period and explain what happens if the tax policy changes before the invoice is issued.

Illustrative line	Pre-tax amount	Illustrative treatment	Line total
Website development	VND 10,000,000	Assumed non-taxable	VND 10,000,000
Hosting	VND 2,000,000	8% in the example	VND 2,160,000
Initial content	VND 1,000,000	8% in the example	VND 1,080,000
Total	VND 13,000,000	VAT of VND 240,000	VND 13,240,000

How does VAT relate to website design pricing?

VAT does not make a website intrinsically expensive or cheap; the scope of work does. Two quotes with the same final amount can differ in page count, design depth, features, licences, content, infrastructure, warranty and source-code ownership. Searches for a website design quote, website design price list or how much a website costs therefore need scope information alongside tax information. A meaningful comparison normalises both the deliverables and the recurring obligations before comparing the grand totals. It should also identify which costs repeat annually and which transfer ownership or usage rights permanently. For more detail, read RiverLee’s guide to evaluating website design quotes and business website cost guide.

Is a VND 500,000 website price really the final price?

An advertisement for a “VND 500,000 website” often describes a very narrow input: installing a pre-built theme or delivering one simple page without content, domain, hosting, maintenance or brand-specific revisions. That amount can be suitable for a small experiment, but it should not be assumed to cover a complete commercial website. Ask whether VND 500,000 is before or after tax, what is delivered, how many revisions are included and what recurring costs start in the following year.

A low price does not change the tax classification. A VND 500,000 project and a VND 50 million project are both classified according to the goods and services actually supplied. A buyer should not accept an incorrect invoice or missing documentation merely because the contract value is small.

How are low-cost WordPress and ecommerce websites priced?

A low-cost WordPress quote can include a theme, commercial plugins, installation, interface customisation, feature development, hosting and maintenance. Each component has its own usage rights, renewal cycle and potential tax treatment. An ecommerce website also requires cart, payment, shipping, inventory and data synchronisation functions, so its price cannot be compared directly with a one-page landing page.

If you need an ecommerce website cost estimate, define the required functions before asking about tax. A cheap ecommerce quote that omits payment-gateway work, product entry, security certificates or operations may have a higher total cost of ownership than a more transparent proposal with a higher initial figure.

How should buyers verify a “reputable low-cost” claim?

Reputation cannot be established by an advertising phrase. For a custom website, verify the contracting party, deliverables, invoice, administrative access, source-code rights, theme and plugin licences, payment schedule, warranty and change-request process. A supplier that clearly explains the pre-tax price, each line item’s tax treatment and the final payment is more credible than a low price list that leaves post-signing obligations blank.

RiverLee does not recommend choosing a provider solely because it promotes “cheap web design.” A suitable proposal is one that meets the business objective, has an acceptable total cost of ownership and provides documentation that the buyer’s accounting team can review.

Checklist for reviewing a website quote and invoice

Buyers can use the following checklist before signing. It does not replace a tax professional, but it reveals the questions that must be answered before funds are transferred:

1. Does each line describe an actual deliverable? “All-inclusive web design” is broad; “requirements analysis, development and delivery under the attached specification” is clearer.
2. Are software and supporting services separated? Domain, hosting, content, advertising, training and operations should have separate lines when they have distinct value.
3. Are prices before or after tax? Look for pre-tax value, tax status or rate, tax amount and final line total.
4. Has “non-taxable” been incorrectly written as “0%”? If so, ask the seller’s accountant to review the wording.
5. Does the 8% treatment have an effective date? The current policy ends on December 31, 2026; a later invoice needs a tax-adjustment clause.
6. Do the invoice, contract and acceptance record match? Service names, values and timing should remain consistent.
7. Are recurring charges disclosed? Domain, hosting, plugins, maintenance and support may renew annually.
8. Will the buyer receive sufficient accounting records? Keep the contract, appendices, acceptance record, invoice and payment evidence together.

If any answer remains unclear, ask for a revised quote before signing. Clarification is usually easier at this stage than correcting an invoice after acceptance. For a high-value contract, an export service or a package containing several service types, the tax accountants of both parties should agree on the presentation from the beginning.

How should a supplier describe scope to avoid disputes?

A supplier should not use a tax category as a marketing label. It should instead describe an auditable process and deliverables: requirements discovery, functional specification, UI/UX design, front-end and back-end development, database setup, testing, deployment, training, warranty and handover. Anything purchased or resold from a third party should identify the provider, service term and account owner.

The acceptance record should refer to the functional appendix. A contract that says “software product” but delivers only interface image files is internally inconsistent. A contract that places advertising, copywriting and hosting into one software-service line is also harder to support. The goal is not artificial fragmentation; it is to align the price, obligation and tax treatment with real work.

If policy changes between the quote date and invoice date, the contract should permit the tax treatment to follow the law effective when the obligation arises. The buyer should distinguish a fixed service fee from tax adjusted by law. A clear clause prevents a legitimate tax change from being misunderstood as an arbitrary price increase.

Special cases that require an accountant or tax authority

A public guide cannot replace a review of the actual file. Obtain advice from a qualified accountant or the directly managing tax authority when a contract has foreign elements, payments pass through multiple parties, intellectual-property rights are complex, a mixed package cannot be valued separately, or the supplier uses a tax method different from the usual assumption. The review must also use the rules effective when the tax obligation arises, because the contract date, acceptance date and invoice date may not be the same. Keep the underlying scope, acceptance evidence and payment records available for that review. The following three situations generate the most confusion.

Website services supplied to an overseas customer

An overseas client does not automatically make the service zero-rated. The seller must examine the place of consumption, customer status, contract, non-cash payment evidence and all current export-service conditions. A website used for operations in Vietnam but signed by a foreign company may require a different analysis from software developed and consumed entirely outside Vietnam.

If the supporting file is incomplete, reporting 0% may create exposure during a tax inspection. The overseas buyer should also request an invoice and deliverable description that match the transaction rather than relying on the payment currency or an international domain name.

A bundled contract containing inseparable service types

The VAT Law requires a business supplying goods or services subject to different rates to report each rate separately. If the business cannot determine each amount, the highest relevant rate may apply to the inseparable value. Combining the full project into one line does not necessarily simplify compliance. It can increase tax risk and prevent the client from understanding what the payment buys.

The practical solution is to separate genuine deliverables in the original quotation, not assign arbitrary ratios after completion. The scope appendix, acceptance schedule and invoice should use consistent names. A commercial proposal may still state one package price while providing a reasoned value allocation for accounting review.

Household businesses, individuals and different tax methods

Not every seller issues invoices under the credit method. A household or individual business may use declaration and tax-calculation rules that differ from a company, and a sales invoice is not the same as a VAT invoice issued by a credit-method enterprise. The question “how much VAT?” must therefore be paired with “who is the supplier and which tax method applies?”.

The buyer should not calculate a tax amount independently and deduct it from the payment. Ask the supplier for a valid quotation and confirmation of the invoice it can issue. If supporting documents are necessary for deductible business expenses, agree on them before paying a deposit, especially when hiring a freelancer or household business.

Frequently asked questions about website VAT and pricing

These answers summarise the points buyers most often need to confirm before approving a quote. They assume a Vietnamese transaction and the rules in force on the update date; the supplier and its accountant must still review the actual file.

Is website design subject to VAT in Vietnam?

Website development that properly qualifies as a software product or software service may qualify as not subject to VAT. Do not extend that conclusion to a whole package containing domains, hosting, content, advertising or other services. Review the contract, output and invoice by line item. Remember that “not subject to VAT” is not the same as “0% VAT,” and the invoice should preserve that distinction clearly.

What VAT rate applies to website design in 2026?

There is no single number. A qualifying software line may be non-taxable. Other items ordinarily taxed at 10% may qualify for 8% through December 31, 2026 if they fall within the reduction and are not excluded. Items that do not qualify follow the rate prescribed by law. The supplier is responsible for classification and invoicing based on the real transaction.

Should a website quote show VAT-inclusive or VAT-exclusive prices?

Either presentation can be understandable if it is explicit, but the clearest format shows the pre-tax value, tax status or rate, tax amount and final payment. A non-taxable item should use the correct term. The quote should also include a validity period so that both parties know how a policy change before invoicing will be handled without confusing tax adjustment with a service-price increase.

Can a VND 500,000 website service be invoiced?

A low contract value does not automatically remove documentation obligations. Whether and what type of invoice can be issued depends on the supplier, its tax method and the transaction. Before paying a deposit, ask what the VND 500,000 includes, whether it includes any tax or fee, what invoice is available and how domain, hosting, revisions and renewals are charged after the initial delivery.

Do hosting and domains receive the same tax treatment as development?

Do not assume so. Hosting is infrastructure, while a domain has its own registration and maintenance mechanism; neither automatically inherits the classification of software development. The quotation should separate their values, and the seller should determine the treatment at the invoice date, including whether the temporary 8% rate is available in 2026 and whether the supplied item falls within an excluded group.

Can the buyer claim input VAT on website design?

If a line item is not subject to VAT, there is no output VAT on that line for the buyer to claim as input tax. For taxable items, deductibility also depends on a valid invoice, payment evidence and use in the buyer’s taxable activities. The buyer’s accountant should review the documents rather than infer deductibility from the quotation’s grand total.

Conclusion: ask about scope before asking for one VAT number

When researching VAT on website design, the most useful answer is not a percentage in isolation. Identify which work is a software product or service, which work is infrastructure or marketing, which prices are pre-tax, which policies expire and how the invoice will present each item. In 2026, pay particular attention to the December 31, 2026 expiry of the two-percentage-point VAT reduction for eligible taxable items. A quote prepared now but invoiced later should contain a clause that lets the statutory tax treatment change without silently changing the agreed service fee.

If you are preparing a project, send RiverLee your page list, feature requirements, content needs, domain, hosting and expected timeline. We can clarify the scope and structure the quote for meaningful comparison; tax classification and invoicing will be confirmed against the documentation, law and applicable reporting method at the time of the transaction. Call 0962.334.807 or request a consultation for a scope-based proposal rather than a context-free “cheap” price.