Facebook collects money from partners to pay tax in Vietnam
Meta, the parent company of Facebook, has announced on its website information about tax collection from Vietnamese advertisers. Beginning June 1, 2022, Facebook ads in Vietnam will be subject to a 5 percent VAT.
Tax collection will be applied to all ads on the platform, targeting clients in Vietnam, with no discrimination for business or individual clients.
Facebook requests that advertisement partners of the social network add a Vietnamese tax code in the Payment Settings. The tax code will be shown on Facebook ad receipts. This would help them recover any VAT they paid to Vietnamese tax authorities.
Facebook said the VAT collection would be applied under two ways. For automatic payment, the 5 percent tax will be calculated before ads are implemented. Users will have to pay additional money for an ad plan on the platform.
If advertisers choose to make payment manually, the VAT amount will be calculated based on real exchange rates, depending on the balance in their ad accounts.
Some days ago, in an official statement, Meta said that it will register, declare and pay foreign contractor tax in Vietnam.
Meta said it had a meeting with the General Department of Taxation (GDT) in April 2022 to clarify the implementation of Circular 80 on registering, declaring and paying tax for foreign contractors in Vietnam.
Meta has committed to register, declare and pay foreign contractor in accordance with the circular. It will provide necessary information to advertisers and clients to ensure tax declaration and payment according to the law.
As such, Meta has taken a move forward to implement its commitments. This shows a cooperative attitude after many years of doing business in Vietnam and not fulfilling tax obligations.
In related news, within the framework of the Prime Minister Pham Minh Chinh’s working visit to the US, Meta’s representatives had a meeting with Chinh and Vietnamese delegates to discuss issues related to digital economy development.
At the meeting, Meta and the National Innovation Center (NIC), an arm of the Ministry of Planning and Investment (MPI) signed a memorandum of understanding on improving the capability of small and enterprises (SMEs) and encouraging innovation.