A recent directive was sent to 100 banks and intermediary payment service providers in Vietnam, requesting them to notify their branches of the obligation to withhold and remit taxes on transactions involving these foreign platforms.
These platforms are widely used in Vietnam, particularly for online travel bookings and cross-border payments.
They charge significant fees, with online booking platforms like Agoda, Airbnb, and Booking.com typically collecting 15–30% per transaction, while PayPal generates revenue through currency conversion fees.
Expert perspectives
E-commerce expert Bui Quang Cuong noted that these platforms play a substantial role in boosting Vietnam's tourism and e-commerce sectors. However, he emphasized the importance of fulfilling tax obligations to create a "win-win" mechanism.
“By collecting taxes from these platforms, the government can reinvest in economic and social development, which, in turn, benefits the businesses operating here. A fair taxation policy also levels the playing field for local platforms that already comply with tax laws,” Cuong explained.
He added that these measures would contribute to Vietnam’s growing e-commerce ecosystem while fostering market equity.
Tax contributions from foreign providers
According to the General Department of Taxation, 123 foreign providers have registered and paid taxes in Vietnam through the national tax portal for foreign suppliers.
In 2024 alone, these providers declared and paid a total of 8.687 trillion VND (approximately $367 million), a 26% increase from 2023 and 74% above projections.
Since the tax portal’s launch in March 2022, foreign companies have paid a cumulative 20.261 trillion VND (approximately $856 million).
Major players such as Meta (Facebook), Google, Microsoft, TikTok, Netflix, and Apple account for 90% of cross-border e-commerce revenue in Vietnam.
Binh Minh