Logo of Phnom Penh Post newspaper Phnom Penh Post - Vietnam to tax overseas sellers on e-commerce platforms

Vietnam to tax overseas sellers on e-commerce platforms

Content image - Phnom Penh Post
Overseas suppliers on e-commerce and digital platforms are subjects to tax in Vietnam. Photo vnexpress.net

Vietnam to tax overseas sellers on e-commerce platforms

The Vietnamese tax watchdog hopes to tax sellers based in foreign countries but operating e-commerce businesses in Vietnam.

The Ministry of Finance recently said the Law on Tax Management No 38/2019/QH14 stipulated that e-commerce businesses and digital-based businesses and other services provided by overseas suppliers without an entity in Vietnam must directly or authorise others to implement tax registration, declaration and payment in the country.

The ministry is compiling a circular to provide detailed instructions for this regulation which was recently made public for comments.

Overseas suppliers on e-commerce and digital platforms were new tax subjects that required detailed regulations to collect taxes efficiently, the ministry said.

Under the draft, overseas suppliers were asked to register for online tax transactions via the e-portal of the General Department of Taxation.

Overseas suppliers could register several banking accounts to pay taxes online.

After the first successful tax registration, overseas suppliers would be provided with a username and password to declare and pay taxes on the department’s e-portal.

Ten-digit tax codes would be provided for overseas suppliers and authorised agencies.

E-commerce has boomed in Vietnam in recent years, especially in 2020 amid the Covid-19 pandemic.

The department’s deputy director-general Dang Ngoc Minh said a number of new tax regulations that will take effect this year are expected to contribute to preventing tax avoidance, especially in e-commerce and digital-based businesses.

The Ministry of Industry and Trade’s report showed about 53 per cent of the population did online shopping made e-commerce to expand at 18 per cent in 2020 to reach a $11.8 billion market.

E-commerce revenue was estimated to account for 5.5 per cent of the total retail sales of goods and services.

VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • Cambodia to waive quarantine requirements Nov 15, no PCR test required

    Prime Minister Hun Sen has decided to lift all quarantine requirements for fully vaccinated travellers and visitors – both Cambodians and foreign nationals – effective from November 15 onward. In a special message addressed to officials and relevant authorities on November 14, Hun Sen said this policy will enable

  • PM: No more quarantine for vaccinated travellers

    Cambodia is lifting all quarantine requirements for vaccinated inbound travellers entering Cambodia by air, waterway or land border checkpoints effective from November 15. Travellers will be required to take a rapid antigen test on arrival rather than waiting for the results of the lengthier polymerase chain

  • No payment required for travellers taking rapid Covid tests on arrival

    Ministry of Health officials said there would be no payment required for the rapid Covid-19 tests given to travellers who arrive in Cambodia from November 15 onwards after the quarantine requirement is lifted for fully vaccinated people. Health ministry spokeswoman Or Vandine told The Post on

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration