Foreign companies called upon to complete the tax return

The gate makes it easier for foreign suppliers operating on digital platforms in Vietnam to pay their taxes. Photo: CTV/CVN

The Corporate Taxation Department reports that some foreign suppliers have been given their tax identification number and guided through the process, while others are still largely absent. Since April 30, 2022, companies that have not yet fully complied with their obligations are included in a list published on the website of the Directorate-General for Taxation and other communication channels.

Tax reporting obligations

from 1er January 2022, in accordance with Government Decree No. 85, to provide e-commerce services in Vietnam, foreign merchants and organizations must complete registration procedures with the Ministry of Industry and Commerce within 12 months from the date of entry into force of the said decree. As per this text, foreign merchants and organizations with websites to provide e-commerce services are comprised of those with e-commerce sites under Vietnamese domain names (eg vn); those with websites in Vietnamese; and those with e-commerce sites that record more than 100,000 transactions from Vietnam per year.

These merchants and organizations are required to register for e-commerce business and establish a representative office in Vietnam (or appoint a representative in Vietnam). Authorized offices or representatives must assume responsibilities such as: cooperating with state management agencies to prevent transactions in goods and services that violate Vietnamese law; fulfill the obligations to protect the interests of consumers and guarantee the quality of products and goods, as well as the prescribed tax declaration obligations.

In addition, government decree No.oh85 stipulates that foreign investors who control one or more companies listed among the top five e-commerce service companies in Vietnam, according to the list released by the Ministry of Industry and Commerce, must file a notice of violation with the Police Department of National security.

To provide e-commerce services in Vietnam, foreign merchants and organizations must complete registration procedures with
of the Ministry of Industry and Commerce.
Photo: CTV/CVN

A portal to track foreign suppliers

Last March, the Directorate-General for Taxation launched a portal for foreign suppliers and an electronic tax mobile application Etax-Mobile. The head of the General Taxation Department, Cao Anh Tuan, said that through this portal, foreign companies can also learn about e-commerce tax laws and policies.

The portal and app were launched after the strong development of e-commerce in Vietnam, said Finance Minister Ho Duc Phoc. Several major groups such as Google predict that the Vietnamese digital economy will reach more than 52 billion dollars and rank third in ASEAN in 2025. The portal allows foreign suppliers with activities on digital platforms in Vietnam to register, declare and pay their taxes. more easily, underlined the minister. Mr. Phoc asked the competent bodies to guarantee the 24-hour operation of the portal and the application, while they worked on updating the services, meeting the demand of foreign suppliers in the application of local tax legislation. The State Bank should ask commercial banks to quickly coordinate with the tax sector to implement the services, he said.

Currently, BIDV, Vietcombank, Vietinbank, Agribank and MBBank already offer electronic payment services via Etax-Mobile. According to the Ministry of Finance, tax payments made by foreign suppliers between 2018 and 2021 reached more than 4.4 trillion VND.

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