These service providers have so far paid total taxes of VND 3,405 billion (US$146 million) including VND1,717 billion in value added tax and VND1,688 billion in corporate income tax.

As of July 17, 334 e-commerce trading floors applied for tax registration including Shopee, Lazada, Sendo, Voso and Tiki.

The portal was exclusively developed for foreign suppliers and put into operation on March 21 last year.

The General Department of Taxation reported that the tax watchdog would continue to create favorable conditions for foreign providers and domestic establishments which are serious in doing healthy business in Viet Nam. At the same time, strict punishments would be applied to violations.

The Ministry of Finance targeted to increase domestic tax collection by 5-7 percent in 2024, focusing on tax collection from cross-border e-commerce.

The tax that Viet Nam collected from the providers remained modest compared to the revenue of the retail e-commerce market which valued US$16.4 billion in 2022, statistics of Viet Nam E-commerce and Digital Economy Agency showed.

It was estimated that Vietnam’s retail e-commerce market would expand by 25 percent to reach US$20.5 billion this year.

On the e-commerce market, six foreign providers namely Meta (Facebook), Google, Microsoft, TikTok, Netflix and Apple, accounted for about 90 percent of the revenue on cross-border digital platforms in Viet Nam./. VGP