The department of taxation of large enterprises under the General Department of Taxation (GDT) has recently announced that four foreign suppliers conducting business in Vietnam through e-commerce digital platforms have not yet complied with regulations on tax registration through the GDT’s e-portal.

They are Agoda International Pte. Ltd (website: https://www.agoda.com), PayPal Pte. Ltd (https://www.paypal.com), Airbnb Ireland Unlimited company (https://www.Airbnb.com) and Booking.com BV (https://www.Booking.com).

The department has requested cooperation from relevant state management agencies, including the Ministry of Information and Communications, the Ministry of Industry and Trade, the State Bank of Vietnam and the Ministry of Public Security to apply appropriate management measures for the above-mentioned foreign suppliers.

The GDT reported that, to date, 120 foreign suppliers have registered, declared, and paid taxes via a portal dedicated to them, with a total amount of nearly 8.7 trillion VND (342.7 million USD) in 2024, a 26% increase compared to the same period in 2023, and 74% higher than the projected estimate, it said.

It has rolled out a range of solutions to enhance tax management for e-commerce activities, particularly cross-border transactions.

The tax authority stated that it will continue analysing the database of foreign suppliers that declare and pay taxes via the portal, as well as the database of Vietnamese organisations that withhold and remit taxes on behalf of foreign suppliers through the centralised tax management system (TMS). It will also integrate data from relevant state agencies to develop plans for targeted inspections of Vietnamese organisations withholding taxes for foreign suppliers in the country.

Additionally, the GDT will gather international experience and review the operating models of major technology corporations to provide recommendations to relevant authorities, including negotiating amendments and supplements to double taxation avoidance agreements to better align with the characteristics of digital economy business models, fostering a competitive and fair business environment for both domestic and foreign enterprises./.VNA

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