The General Department of Taxation directly administers taxes on overseas suppliers and is responsible for granting tax identification numbers to overseas suppliers in accordance with Vietnamese regulations.
The Vietnamese Minister of Finance has issued Circular 80/2021/TT-BTC guiding the Law on Tax Administration and Decree 126/2020/ND-CP.
According to Circular 80, platforms such as Facebook, Google and YouTube, although not having a fixed business establishment in Vietnam, operating via e-commerce methods in Vietnam will have to register for tax declaration at tax administration agencies of Vietnam.
This circular also clearly stipulates the responsibilities of tax authorities in tax administration for e-commerce business, business on digital platforms and other services performed by overseas suppliers in Vietnam.
Accordingly, the General Department of Taxation directly administers taxes on overseas suppliers and is responsible for granting tax identification numbers to overseas suppliers in accordance with Vietnamese regulations, receiving tax declarations and implementing tasks related to tax declarations and performance of tax duties of overseas suppliers.
In addition, the General Department of Taxation is responsible for updating the list of foreign suppliers authorized for tax registration and tax declaration on the website of the General Department of Taxation; and coordinating with relevant agencies in determining and announcing the names and website addresses of overseas suppliers that have not yet registered, declared and paid taxes on goods and services bought in Vietnam.
In addition, this agency has the right to coordinate with the tax agencies in other countries to exchange and urge overseas suppliers to declare and pay tax; and collect arrears from overseas suppliers if it is proved that the overseas suppliers have declared and paid tax incorrectly.
This agency will also coordinate with competent authorities to implement measures as prescribed by law if overseas suppliers do not comply with tax obligations in Vietnam.
As trading activities on e-commerce platforms bring huge profits, collecting tax has become a burning issue for many countries.