The operator of Temu in Vietnam, Elementary Innovation Pte. Ltd., completed its tax registration with the Vietnamese General Department of Taxation on September 4, 2024.

Registered under the tax code 9000001289, Temu has committed to filing quarterly revenue reports, with its initial declaration covering Q3 2024, due on October 31, 2024.

In compliance with Circular No. 80/2021/TT-BTC, which mandates quarterly tax declarations for foreign online platforms, Temu will report its revenue from the onset of its operations in Vietnam.

The platform expects to post taxable revenue by October 2024, filing for Q4 by January 31, 2025.

The General Department of Taxation confirmed it would closely monitor Temu’s revenue declarations, ensuring the company’s compliance with Vietnamese tax regulations.

With rising foreign e-commerce activity, platforms like Temu, Shein, and 1688 have launched business operations in Vietnam.

Under Vietnam’s Tax Management Law and Circular No. 80/2021/TT-BTC, e-commerce platforms operating in Vietnam are required to register, declare, and pay taxes directly through the tax portal designed for foreign providers, which was launched by the General Department of Taxation in 2022.

Should discrepancies arise in reported revenue, tax authorities will cross-reference data, enforce tax obligations, and initiate audits if necessary.

To strengthen tax compliance among foreign e-commerce providers, the General Department of Taxation has reviewed entities with unreported income in Vietnam and is implementing measures to ensure effective oversight.

Some providers have attempted to circumvent tax responsibilities by citing “permanent establishments” through local offices. In response, the General Department of Taxation has recommended amendments to Article 42 of the Tax Management Law No. 38/2019/QH14 to address such cases.

Vietnam’s tax authority is working to refine the Law on Tax Management, VAT Law, and Corporate Income Tax Law, alongside draft amendments to Decree No. 123/ND-CP on invoices.

These updates aim to enhance the taxation framework, ensuring full tax compliance and accountability for foreign e-commerce providers in Vietnam.

Binh Minh