The statistics was announced by Deputy General Director of General Department of Taxation Dang Ngoc Minh at the Finance Ministry’s 2022 third quarter press conference taken place on September 29, 2022. According to Mr. Minh, Vietnam is one of the four leading countries in the ASEAN region to apply tax collection to foreign providers through an online portal, affirming Vietnam’s right to collect taxes on e-commerce business activities, business based on digital platforms.
After 6 months deploying the Portal for Foreign Providers (from March 21, 2022 to present), 36 foreign providers have registered, declared and paid taxes through the Portal. Six (06) big foreign providers (Meta (Facebook), Google, Microsoft, TikTok, Netflix, Apple) accounting for 90% of the market share in revenue of e-commerce business services on cross-border digital platforms in Vietnam have registered, declared and paid taxes in Vietnam with a total amount reaching tens of millions of USD, EUR, equivalent to hundreds of billions dong. Of which, Meta has paid 16.8 million euros, Tiktok has paid 81.7 billion dong, ...
According to the General Department of Taxation, big foreign providers (Meta (Facebook), Google, Microsoft, TikTok, Netflix, Apple) have actively coordinated with tax authorities to learn about tax policies, make proposals and comments to taxation authorities to improve tax policies and tax management tools, contributing to improving management efficiency of taxation authorities. This also shows that Vietnam's tax policy and tax management are in line with international practices, ensuring fairness and transparency for global organizations and businesses when doing business in Vietnam.
According to estimates of the General Department of Taxation, the total tax amount paid by foreign providers since year beginning so far reaches approximately VND 1,000 billion, of which about VND 500 billion paid via the Portal for Foreign Providers.
The General Department of Taxation notices upon registering e-tax transactions, foreign providers shall carry out e-tax transactions registration together with initial tax registration through Portal for Foreign Providers, at the same time, they must meet the following conditions: possibility to access and use internet, having email address to deal with taxation authority directly. Procedures are authenticated by electronic transaction authentication codes. The codes are sent to email registered by foreign providers with Vietnamese taxation authority when making initial tax registration and information changing registration (if any).
Foreign provider is allowed to register only one official email address to receive notifications for transactions with taxation authority. After successfully completing initial tax registration procedure, Portal for Foreign Providers sends information on electronic transaction account and tax identification number (TIN) to taxpayer’s registered email address. TIN to foreign providers who register, declare and pay taxes directly or authorize others to do such procedures shall comply with the provisions of Circular No. 105/2020/TT-BTC dated December 3, 2020 of the Ministry of Finance providing guideline on tax registration.
The Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance stipulates that organizations and individuals involving in tax administration applicable to e-commerce business, digital-based businesses and other services of foreign providers without permanent establishments in Vietnam shall include the following:
Firstly, foreign providers without permanent establishments in Vietnam conducting e-commerce, digital-based business and other services with organizations and individuals in Vietnam.
Secondly, organizations and individuals in Vietnam purchasing goods and services from foreign providers.
Thirdly, tax agents operating under Vietnamese law being authorized by foreign providers to perform tax registration, tax declaration and tax payment in Vietnam.
Fourthly, commercial banks, payment intermediary service providers and organizations, individuals having rights and obligations related to e-commerce business, digital-based business and other services of foreign providers.
(Thu Hang)
Loading...
