How are Employee Expenses reimbursed in Vietnam?



Modified on: Tue, 30 Sep, 2025 at 2:56 PM

TABLE OF CONTENTS


This guide outlines the process, documentation requirements, and tax considerations for submitting business expense claims in Vietnam. Following these steps will help ensure your reimbursement is processed smoothly and in compliance with local regulations.


What Receipts Are Accepted?

  • Standard receipts are generally sufficient for most expenses.
  • Receipts must clearly show:
    • Date of transaction
    • Amount
    • Details of the purchase or service
  • Company name/address is not required on small receipts, but for major expenses, a Vietnamese VAT invoice is preferred.


Vietnamese VAT Invoice Requirements

For expenses to be deductible and eligible for VAT recovery, the invoice should show:

  • Vendor name & address
  • Vendor Tax ID (MST)
  • Buyer name: CÔNG TY TNHH HORIZONS TECHNOLOGY VIETNAM
  • Tax code: 0317801954
  • Invoice number & date
  • Description of goods/services
  • Amount and VAT breakdown

Note: If the invoice is issued to the employee personally, additional documentation and justification will be required, and VAT recovery may not be possible.


Approval Process

  1. Submit your receipts and expense details via the Horizons platform.
  2. Your line manager reviews and approves the expenses.
  3. Once approved, the expenses are processed for reimbursement.

If you experience delays or issues, please contact your line manager for support.


Travel & Mileage

Mileage Reimbursement

  • Vietnam does not have a statutory mileage rate.
  • Companies may:
    • Reimburse actual fuel costs (with receipts) + a per-km allowance, or
    • Pay a flat per-km rate defined in internal policy


Parking & Tolls

  • Must be claimed as separate line items

  • Require individual receipts for clean accounting and VAT treatment


Business Travel

Travel TypeDocumentation Required
AirfareE-ticket + invoice (economy class unless pre-approved)
Train/BusTicket or official receipt
Taxi/GrabReceipt or e-receipt showing employee or company name + journey details
Rental CarsRental agreement + VAT invoice + fuel receipts (if reimbursed separately)



Reimbursement & Taxability

Non-Taxable Reimbursements

  • Business expenses reimbursed with valid documentation and business justification are not taxable to the employee.
  • Includes:
    • Travel and accommodation
    • Conference fees
    • Vendor services
    • Printing and booth materials


Per Diems

  • Commonly used in Vietnam
  • Non-taxable if:
    • Reflect actual business travel costs
    • Supported by policy and documentation
  • Taxable if:
    • Paid as flat allowances without proof
    • Exceed reasonable limits


Gifts & Hospitality

  • Small business hospitality expensesare deductible if:
    • Properly documented
    • Clearly business-related
  • High-value gifts or personal gifts to employees may trigger:
    • Fringe benefit tax
    • Withholding tax
  • Always document:
    • Purpose
    • Attendees
    • Amounts
    • Attach invoices/receipts


Wellness & Health Expenses

  • Not automatically reimbursable
  • Medical bills or gym membershipsmay be taxable unless:
    • Required by law
    • Directly connected to business (e.g., mandatory medical checks)
  • Treat on a case-by-case basis and seek local tax guidance


VAT Recovery

  • VAT is charged by vendors
  • VAT can be reclaimed if:
    • Supplier is VAT-registered
    • Invoice is issued to the company
    • Expense is business-related
  • If invoice is issued to the employee, VAT recovery is not possible

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