There is clear mention of the Avatar ( incarnation) of God in the Vedas.
It is obvious from the Vedic Verse ajAyamAno bahudhA vijAyate (forming part of Purusha Sukta) that though unborn, Bhagavan takes avatar and that those who are steadfast know well his true form. The meaning is that a mortal is born due to his Karma whereas Bhagavan takes an Avatar based on His free Will. He is not bound by any Karma as He is always unattached towards it.
The following is from Taittiriya Aranyaka iii-40, iii-41 of Krishna Yajur Veda.
ajAyamAno bahudhA vijAyate
tasya dheerA: parijAnanti yonim
The following is from Vajasaneya Samhita - Madhyandina Sakha xxxi-19 of Sukla Yajur Veda
ajAyamAno bahudhA vijAyate
tasya yonim paripasyanti dheerA: