Is SEO service subject to VAT in Vietnam? 0% or 10%?

“Is SEO service subject to VAT?" is a common question for many businesses handling invoices and tax filings. In practice, quite a few have applied the wrong tax rate simply because they didn't understand the nature of the service, which creates risk at final tax settlement. So is SEO subject to VAT, and what rate applies under the rules? Let's MONA Media go through it in detail in the article below.

Is SEO a service subject to VAT?

SEO services falls under VAT-exempt (not subject to VAT). 

The definition of software services is set out in Clause 10, Article 3 of Decree 71/2007/ND-CP. It says software services are activities that directly support producing, installing, operating, upgrading, maintaining or exploiting software.

Under Circular 129/2008/TT-BTC dated December 26, 2008 and Circular 219/2013/TT-BTC of the Ministry of Finance on items not subject to VAT: "Computer software includes software products and software services as defined by law.”

In essence, a website is a form of software, since it is built with programming languages such as PHP, HTML, XML and Java. SEO is the process of optimizing and improving how a website performs, so it is considered an activity directly related to software.

=> From these grounds, we can conclude that SEO is classed as a software service and is not subject to VAT.

You may also be interested in: Is website design subject to VAT ? Exempt or 10% VAT

Telling SEO apart from other online advertising services

Telling apart SEO and online advertising matters a lot, because each type is taxed differently.

• SEO services: The process of optimizing a website to improve its organic search ranking. It is long-term and focused on the website itself, so it is treated as a software service.
• Advertising services: Services such as running Google Ads or Facebook Ads are paid placements that display ads on a third party's platform. The nature of the service is advertising, so it is subject to VAT.

Under Clause 1, Article 1 of Decree 174/2025/ND-CP, the State reduces VAT on goods and services currently taxed at 10%. However, the policy doesn't apply to certain sectors such as finance, banking, telecommunications, securities, real estate, insurance, metal products, mining, and goods and services subject to special consumption tax. 

Advertising services are not among these excluded groups, so they remain eligible for the reduction: VAT of 10%, which can drop to 8% when the conditions of the tax reduction policy are met.

For example, if a business provides Facebook advertising services for the education or consumer sector and is not in an excluded group, it can issue invoices at an 8% rate.

Key tax rates in a digital marketing contract

In an overall digital marketing contract, each service item can carry a different tax rate. Businesses should separate each part clearly in the contract and invoice to avoid applying the wrong rate.

Services not subject to VAT

These include services directly tied to software and technical work, such as:

• SEO services to optimize a website.
• Consulting and designing SEO-friendly website structures.
• Administration and maintenance of websites or software.

Services taxed at 10% or 8% (under the tax reduction policy)

These are commercial or advertising services.

• Domain names and hosting: This is an infrastructure rental service, so the 10% rate applies.
• Advertising service such as Google Ads or Facebook Ads: Subject to 10% VAT, which can fall to 8% if the conditions of the policy at that time are met.
• Content writing or image design services: If not tied directly to software optimization, these can also be subject to VAT.

Special case: 0% tax rate

If a business provides SEO Global services to customers abroad and the services are used outside Vietnam, the 0% rate may apply. The condition is that all requirements in Clause 2, Article 9 of Circular 219/2013/TT-BTC are met.

Important notes when issuing invoices for SEO services

To apply the tax rules correctly and avoid risk when dealing with the tax authority, businesses need to pay close attention to how SEO services are worded and classified on invoices.

• Describe the service as a "software service": The business should state clearly that SEO is a software service related to a website. The invoice should say something specific such as "Website search engine optimization service" so it fits the rules on items not subject to VAT.
• Register and file taxes under the right industry code: The business should choose industry codes under software services or information technology so that its operations and tax filings are consistent. Suitable codes include:
  • Code 6201: Computer programming.
  • Code 6202: IT consulting and system administration.
  • Code 6311: Data processing and related activities. Registering the right code also helps limit questions from the tax authority during inspections.
• Caution when lumping taxable and non-taxable services into one item: If a business lists SEO, advertising and hosting together on one "Digital Marketing" line, the tax authority may apply the 10% rate to the entire contract value. The business then loses the VAT exemption for the SEO portion, which hurts its finances.
• Separate the service items clearly in the contract: The business should split each type of service in the contract and invoice. SEO should be listed separately as a software service, while advertising or other services should be shown separately so that the right rate applies under the rules. 

As you can see, SEO is not just a marketing question but also directly tied to tax obligations. That is why understanding correctly whether SEO is subject to VAT helps your business limit risk and keep costs reasonable. We hope this article has given you a satisfying answer to the question "is SEO subject to VAT?" and that you can apply it effectively in practice.