Ecovis Barcelona

Tax on Vietnam Cross Border E-Commerce Activities

In recent years, due to the progess in technology, Vietnam has become a leading market for foreign investors in the field of e-commerce. The country is now passing and amending regulations regarding tax obligations for e-commerce activities, particularly concerning cross-border e-commerce of Overseas Suppliers who don’t have permanent establishments in Vietnam.

1. Tax obligations of overseas suppliers [1]

Overseas Suppliers without permanent establishments in Vietnam carrying out E-commerce, digital platform-based business, and other services to organizations and individuals in Vietnam (hereinafter referred to as “Overseas Suppliers”) earning income from Vietnam are subject to tax payment and must fulfill tax obligations, as prescribed under the laws of Vietnam.

2. Tax payment method [2]

On 21 March 2022, to support Overseas Suppliers in fulfilling their tax obligations in Vietnam, the General Department of Taxation announced the official operation of the Online Portal for Overseas Suppliers, so that tax registration, declaration, and payment could be conducted via the website https://etaxvn.gdt.gov.vn.

Overseas Suppliers shall exercise directly, or authorize tax agencies or organizations that are operating under Vietnamese law, to apply for taxpayer registration and to declare and pay tax in Vietnam.

3. Taxes to pay [3]
  • Value Added Tax (VAT);
  • Corporate Income Tax.

4. Tax administration method

If Overseas Suppliers have not registered, declared, and made a payment for applicable tax when earning income in Vietnam:

  • If the payment is made by an individual, the commercial banks or payment service providers shall deduct and pay tax on behalf of the Overseas Suppliers on each product and service paid for.
  • öIf the payment is made by an organization, the organization shall declare, deduct, and pay tax on behalf of the overseas supplier in accordance with the regulations on withholding tax.

Tax authorities shall coordinate with competent authorities to take measures for handling such tax obligations in accordance with Vietnamese law, monitoring any failure to comply with the required tax obligations. In addition, tax authorities in Vietnam can cooperate with their overseas counterparts, exchanging information and urging overseas suppliers to declare, pay tax, and collect tax liabilities from Overseas Suppliers.

The above policy shows that initially, cross-border e-commerce activities in Vietnam have been strictly controlled under the provisions of Vietnamese law. To support overseas suppliers doing business in Vietnam, ECOVIS Vietnam Law provides tax consulting services and assists in applying for taxpayer registration, declaration, and tax payment, to ensure compliance and minimize any potential violations.

For further information please contact:

Vu Manh Quynh
Email: quynh.vu@ecovislaw.vn

[1] Chapter IX Circular 80/2021/TT-BTC

[2] Official Dispatch 177/CT-KK in 2022

[3] Article 5 Circular 103/2014/TT-BTC

Tax on Vietnam Cross Border E-Commerce Activities

In recent years, due to the progess in technology, Vietnam has become a leading market for foreign investors in the field of e-commerce. The country is now passing and amending regulations regarding tax obligations for e-commerce activities, particularly concerning cross-border e-commerce of Overseas Suppliers who don’t have permanent establishments in Vietnam.

1. Tax obligations of overseas suppliers [1]

Overseas Suppliers without permanent establishments in Vietnam carrying out E-commerce, digital platform-based business, and other services to organizations and individuals in Vietnam (hereinafter referred to as “Overseas Suppliers”) earning income from Vietnam are subject to tax payment and must fulfill tax obligations, as prescribed under the laws of Vietnam.

2. Tax payment method [2]

On 21 March 2022, to support Overseas Suppliers in fulfilling their tax obligations in Vietnam, the General Department of Taxation announced the official operation of the Online Portal for Overseas Suppliers, so that tax registration, declaration, and payment could be conducted via the website https://etaxvn.gdt.gov.vn.

Overseas Suppliers shall exercise directly, or authorize tax agencies or organizations that are operating under Vietnamese law, to apply for taxpayer registration and to declare and pay tax in Vietnam.

3. Taxes to pay [3]
  • Value Added Tax (VAT);
  • Corporate Income Tax.

4. Tax administration method

If Overseas Suppliers have not registered, declared, and made a payment for applicable tax when earning income in Vietnam:

  • If the payment is made by an individual, the commercial banks or payment service providers shall deduct and pay tax on behalf of the Overseas Suppliers on each product and service paid for.
  • öIf the payment is made by an organization, the organization shall declare, deduct, and pay tax on behalf of the overseas supplier in accordance with the regulations on withholding tax.

Tax authorities shall coordinate with competent authorities to take measures for handling such tax obligations in accordance with Vietnamese law, monitoring any failure to comply with the required tax obligations. In addition, tax authorities in Vietnam can cooperate with their overseas counterparts, exchanging information and urging overseas suppliers to declare, pay tax, and collect tax liabilities from Overseas Suppliers.

The above policy shows that initially, cross-border e-commerce activities in Vietnam have been strictly controlled under the provisions of Vietnamese law. To support overseas suppliers doing business in Vietnam, ECOVIS Vietnam Law provides tax consulting services and assists in applying for taxpayer registration, declaration, and tax payment, to ensure compliance and minimize any potential violations.

For further information please contact:

Vu Manh Quynh
Email: quynh.vu@ecovislaw.vn

[1] Chapter IX Circular 80/2021/TT-BTC

[2] Official Dispatch 177/CT-KK in 2022

[3] Article 5 Circular 103/2014/TT-BTC

Tax on Vietnam Cross Border E-Commerce Activities

In recent years, due to the progess in technology, Vietnam has become a leading market for foreign investors in the field of e-commerce. The country is now passing and amending regulations regarding tax obligations for e-commerce activities, particularly concerning cross-border e-commerce of Overseas Suppliers who don’t have permanent establishments in Vietnam.

1. Tax obligations of overseas suppliers [1]

Overseas Suppliers without permanent establishments in Vietnam carrying out E-commerce, digital platform-based business, and other services to organizations and individuals in Vietnam (hereinafter referred to as “Overseas Suppliers”) earning income from Vietnam are subject to tax payment and must fulfill tax obligations, as prescribed under the laws of Vietnam.

2. Tax payment method [2]

On 21 March 2022, to support Overseas Suppliers in fulfilling their tax obligations in Vietnam, the General Department of Taxation announced the official operation of the Online Portal for Overseas Suppliers, so that tax registration, declaration, and payment could be conducted via the website https://etaxvn.gdt.gov.vn.

Overseas Suppliers shall exercise directly, or authorize tax agencies or organizations that are operating under Vietnamese law, to apply for taxpayer registration and to declare and pay tax in Vietnam.

3. Taxes to pay [3]
  • Value Added Tax (VAT);
  • Corporate Income Tax.

4. Tax administration method

If Overseas Suppliers have not registered, declared, and made a payment for applicable tax when earning income in Vietnam:

  • If the payment is made by an individual, the commercial banks or payment service providers shall deduct and pay tax on behalf of the Overseas Suppliers on each product and service paid for.
  • öIf the payment is made by an organization, the organization shall declare, deduct, and pay tax on behalf of the overseas supplier in accordance with the regulations on withholding tax.

Tax authorities shall coordinate with competent authorities to take measures for handling such tax obligations in accordance with Vietnamese law, monitoring any failure to comply with the required tax obligations. In addition, tax authorities in Vietnam can cooperate with their overseas counterparts,  exchanging information and urging overseas suppliers to declare, pay tax, and collect tax liabilities from Overseas Suppliers.

The above policy shows that initially, cross-border e-commerce activities in Vietnam have been strictly controlled under the provisions of Vietnamese law. To support overseas suppliers doing business in Vietnam, ECOVIS Vietnam Law provides tax consulting services and assists in applying for taxpayer registration, declaration, and tax payment, to ensure compliance and minimize any potential violations.

For further information please contact:

Vu Manh Quynh
Email: quynh.vu@ecovislaw.vn

[1] Chapter IX Circular 80/2021/TT-BTC

[2] Official Dispatch 177/CT-KK in 2022

[3] Article 5 Circular 103/2014/TT-BTC