DPS.MEDIA advertising cost calculator – compare self-running and running via DPS
TOOL 1: FORWARD CALCULATION (Enter the Desired Ads Budget ➔ Calculate Total Transfer Amount)
Enter the actual advertising budget you want to run
VND
Agency service fee
%
VND
Enter the amount to see cost analysis
TOOL 2: REVERSE CALCULATION (Enter the Total DPS Transfer Amount ➔ Calculate the Actual Ads Budget)
Enter the total amount you want to transfer to DPS
VND
Agency service fee
%
VND
Enter the amount to see cost analysis
HISTORY OF CHANGES IN META TAX CALCULATION AND LEGAL BASIS
Latest update: October 2026
Nature of the latest update from Meta: Since October 2026, Meta has officially differentiated advertisers in Vietnam. For businesses with a Tax Identification Number (TIN) that have uploaded a Business Registration Certificate (BRC), Meta stops charging 10% VAT on bank cards and transfers the entire obligation to self-declare and pay foreign contractor tax to Vietnamese businesses.
Stage 1
Before June 2022
Applied Circular 103/2014/TT-BTC as standard (businesses self-paid 100%)
- Bank card charged: 100% of the actual Ads budget (Meta had not yet opened a tax portal in Vietnam).
- Foreign Contractor Tax (FCT) obligation: Vietnamese businesses prepared tax declarations and paid them to the State Treasury: 5% VAT + 5% CIT. Total foreign contractor tax was 10%.
- Responsibility: The company's accountant was personally responsible for declaring each occurrence or declaring monthly/quarterly.
Stage 2
June 2022 – September 2026
Meta directly collected VAT via bank cards through the Etaxvn Portal (Circular 80/2021)
- Bank card charged: Ads spend + 10% VAT (initially 5%, increased to 10% from 01/07/2025 under the amended VAT Law). The card was also charged an accumulated bank fee of 1.1% on the VAT-inclusive amount.
- Self-paid tax obligation: Because Meta had already collected and paid the VAT portion through the Tax Portal for Foreign Suppliers, the company's accountant only had to self-declare and pay 5% CIT.
- Major bottleneck: Meta's invoice is an international commercial invoice (from Meta Platforms Ireland Limited), not a domestic electronic invoice. Vietnamese tax authorities are very strict, and most businesses cannot deduct this 10% VAT amount (completely absorbed into expenses).
Phase 3 (Current ⭐)
From October 2026 to present
Meta stops charging 10% VAT on cards for businesses with a business license & Gross-up FCT mechanism
- Bank card charged: The actual Ads budget amount A + 1.1% bank fee (the card is no longer subject to funds being held or an additional 10% VAT deduction).
- Formula for calculating Foreign Contractor Tax (FCT) by each component (A, B, C, D, E):
Since the payment to Meta is NET income (the contractor is not subject to tax in Vietnam), the business must convert the taxable revenue to Gross revenue in accordance with Circular 103/2014/TT-BTC:
• Component [A]: Actual Ads budget (NET amount paid to Meta).
• Component [B]: Gross taxable revenue = A / 0.85 (because the total FCT is 15%, and NET amount A accounts for 85%).
• Component [C]: Contractor corporate income tax = 5% x B (included in the business's deductible expenses).
• Component [D]: Contractor VAT = 10% x B (paid to the State Treasury and eligible for a tax credit −D).
• Component [E]: Bank card fee = 1.1% x A.
• Specific example: Ad spend A = VND 100,000,000 ➔ B (Gross) = VND 117,647,059 ➔ Corporate income tax C = VND 5,882,353 (5% x B) ➔ VAT D = VND 11,764,706 (10% x B). - VAT credit mechanism: The contractor VAT amount [D], when paid to the State Treasury with a State Budget Payment Receipt bearing the business's tax identification number, will be eligible for a 100% input VAT credit (−D). The actual costs borne by the business are only: Ad spend [A] + Corporate income tax [C] + Card fee [E].
- Why is running ads through DPS still the safest and most cost-effective option?
• No need to worry about FCT declarations: Running ads independently requires the accountant to prepare Form 01/NTNN foreign contractor tax returns for each transaction or monthly, reconcile card exchange rates, pay the State Treasury, and bear the risk of penalties for late or incorrect declarations.
• Avoid losing the entire 10% VAT: If you add a personal card directly without paying FCT, the business loses the full 10% VAT and faces the risk of having 100% of advertising expenses disallowed during tax audits.
• Receive fully compliant official VAT invoices: DPS pays all contractor taxes on the business's behalf and issues valid electronic VAT invoices for services, allowing the business to claim a 100% VAT credit against output VAT.
• Account and capital security: Avoid the risk of card lockouts, held funds, spending limits, or disabled accounts that disrupt business operations.
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