Vietnam tax authority clarifies VAT for AI chatbot services

The Ho Chi Minh City Tax Department has provided guidance regarding Value Added Tax (VAT) applications for AI chatbot services that integrate foreign AI models, such as OpenAI.

For companies providing platforms like Preny, which charge both a subscription fee and additional fees based on the volume of AI messages processed, the tax treatment depends on the company's sales policy. The tax authority noted that additional fees for AI messages can be considered either a component of the primary chatbot service or an independent service.

Under the 2024 VAT Law, a 10% tax rate applies to goods and services not otherwise specified, including those provided by foreign suppliers via digital platforms. The determination of whether specific fees fall under different tax rates or exemptions depends on the specific classification of the service as defined by government decrees.