# Merchant of Record In Vietnam > See how Vietnamese SaaS teams use a Merchant of Record to handle global payments, tax compliance, and multi-currency billing without foreign entities. - **Author**: Joshua D'Costa - **Published**: 2025-02-12 - **Category**: Merchant of Record, Tax & Compliance - **URL**: https://dodopayments.com/blogs/merchant-of-record-vietnam --- A Merchant of Record allows a Vietnam-based SaaS company to sell worldwide without incorporating abroad, because the MoR becomes the legal seller of record and assumes the tax liability on each sale. That matters in Vietnam specifically, since Stripe is not officially supported for local entities and PayPal cannot be used to receive domestic business payments. Vietnam's digital economy has been forecast to pass $49 billion, but businesses struggle to capture international revenue because the major global processors impose entity requirements that most SMEs cannot meet. Tax policy compounds the problem. The Foreign Contractor Tax applies to remote sellers, combining VAT and income tax on digital service sales, and registration requirements are published by the General Department of Taxation on its own non-resident supplier portal. Below are the specific barriers Vietnamese teams hit, and how an MoR removes each one. ## Stripe and PayPal availability in Vietnam in 2026 Vietnam's fintech industry is growing fast, and digital payments have been expanding at double-digit annual rates, with mobile POS payments leading the way. While this creates opportunities, it also brings challenges like tax compliance and cross-border transactions which a Merchant of Record (MoR) simplifies. > Tax compliance is not a one-time setup. It is a moving target. Rates change, thresholds change, and new jurisdictions add digital services taxes every year. Automating this is not optional if you sell globally. > > \- Rishabh Goel, Co-founder & CEO at Dodo Payments While **Stripe** is a powerful payment gateway, it's not officially supported in Vietnam. Businesses need to incorporate their company in the U.K. to use it, which is both costly and time-consuming. On the other hand, **PayPal Vietnam** has faced compliance challenges, including tax registration requirements imposed on foreign digital platforms, leaving businesses with limited payment options and delayed transactions. In addition to these international solutions, Vietnam's local payment providers like **VNPay, MoMo, and ZaloPay** are making significant strides in digital payments. These platforms have become essential for everyday transactions and serve as critical players in Vietnam's fast-evolving digital economy. The ever-changing VAT (Value Added Tax) regulations and other compliance challenges, make it clear why Vietnam businesses need a Merchant of Record. ## The Problem with Vietnamese Global Expansion 1. **Barriers to Global Payment Platforms** Many Vietnamese businesses find it difficult to access popular payment platforms like Stripe Vietnam or PayPal Vietnam. These platforms often require a local business entity or bank account in the target market, which can be a significant barrier for small and medium-sized enterprises (SMEs). 2. **Tax and Compliance Complications** Since July 2020, even foreign suppliers offering e-commerce or digital platform services without a permanent establishment in Vietnam have been subject to VAT and CIT obligations. This means that non-resident digital service providers must register, charge, and remit VAT, adding to business complexity. 3. **Limited Payment Processing Options** While Vietnam is rapidly digitalizing its financial services, many businesses still face limited options for processing international payments. This restricts their ability to accept payments from global customers seamlessly. 4. **Dependence on Foreign Accounts** Setting up foreign business entities or bank accounts to accept international payments is costly and complex, especially for startups and SMEs. ## Criteria for Choosing a Payment Gateway in Vietnam When selecting a payment gateway, consider the following: - Ensure the platform supports major currencies like USD, EUR, and VND. - Look for providers that offer diverse payment methods, including B2C and B2B transactions. - Choose a gateway that integrates with popular e-commerce platforms like Shopify and WooCommerce. - Prioritize platforms with robust security features, including SSL encryption and fraud detection. ## Introducing Dodo Payments At [Dodo Payments](https://dodopayments.com/payments/merchant-of-record), we understand that expanding your business globally can be challenging, especially when you're dealing with complex regulations and payment hassles. Here's how we make your life easier: 1. **Seamless Global Payments** Businesses can accept payments from customers across 220+ countries and territories, using 40+ payment methods and 80+ currencies. The full list of supported options is in the [payment methods documentation](https://docs.dodopayments.com/features/payment-methods). 2. **Regulatory and Tax Compliance** Tax calculation, filing and reporting across 190+ countries is included at no additional cost, covering VAT, GST and US sales tax. If you are still deciding between models, the [merchant of record versus PSP](https://dodopayments.com/blogs/merchant-of-record-vs-psp) breakdown explains where the liability actually sits in each case. 3. **Reliable Payouts** Payouts are free, with a $5 fee only on payouts under $1,000 and standard FX on non-USD settlements. USD SWIFT payouts are $25. Full fee details, including the 4% + 40c domestic US rate and the +1.5% international add-on, are on the [pricing page](https://dodopayments.com/pricing). 4. **No Need for Foreign Business Entities or Bank Accounts** With Dodo Payments, you can sell internationally without setting up a foreign business entity or bank account. This eliminates unnecessary costs and complexities, making global expansion simpler than ever. ## FAQ ### Is Stripe officially available for Vietnam-based SaaS companies? Stripe is not officially available for most Vietnam-based entities, so many founders need foreign incorporation workarounds. A Merchant of Record can help you sell globally without creating overseas entities just to process payments. ### Do foreign SaaS companies need to handle VAT when selling into Vietnam? Yes, foreign digital sellers may have VAT obligations in Vietnam depending on their sales activity and customer base. This is one reason many teams use an MoR to automate tax calculation, collection, and remittance. ### Why is a Merchant of Record useful for Vietnamese startups? An MoR takes legal and operational ownership of payments, tax compliance, and many dispute workflows. That reduces admin work for your team and makes global expansion faster and less risky. ### Can I accept multiple currencies from Vietnam without opening foreign bank accounts? Yes, with the right payment infrastructure you can bill buyers in multiple currencies while getting streamlined payouts. An MoR model is designed to remove the need for setting up separate foreign entities and accounts in each market. ### What should I look for in a Vietnam-friendly payment setup? Prioritize multi-currency support, strong fraud controls, reliable payouts, and automated compliance coverage. You should also confirm the provider supports both local and international payment preferences for your target regions. ## Conclusion Dodo Payments as your Merchant of Record, you can overcome the challenges of cross-border payments, taxes, and regulatory compliance. Our platform is designed to help businesses thrive in the global market, offering seamless payments, reliable payouts, and hassle-free tax handling. Ready to Revolutionize your business with [Dodo Payments](https://dodopayments.com/)? Take the leap today and grow your business beyond borders by [signing up](https://dodopayments.com/pricing). --- - [More Merchant of Record articles](https://dodopayments.com/blogs/category/merchant-of-record) - [All articles](https://dodopayments.com/blogs)