26 organizations pay tax via Portal for foreign suppliers

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E-portal for foreign suppliers.

The General Department of Taxation has reported to the Government and the National Assembly to adopt the Law on Tax Administration 38/2019/QH14. For the first time, the law provides management responsibility of the tax authorities, and stipulates that the foreign enterprises in e-commerce, digital-based business and other services without a permanent establishment in Vietnam must register, declare and pay tax at the Portal for foreign suppliers. In addition, it also regulates the responsibilities of individuals and banks in Vietnam related to the trading of goods and use by foreign suppliers.

Deputy Director General of the General Department of Taxation Dang Ngoc Minh said that these are part of the key legal framework on tax administration for foreign enterprises doing e-commerce, digital-based business and other services, without a permanent establishment in Vietnam.

On March 21, the Ministry of Finance officially launched the portal for foreign suppliers to modernize tax management. The foreign suppliers can register, declare and pay tax at the Portal, creating convenience, equality and transparency in tax registration, declaration, and payment under the international tax administration trend.

As a result, in the three months since the launch of the Portal on March 21, 26 major foreign suppliers (Microsoft, Facebook, Netflix; Samsung; TikTok; eBay ...) have registered for tax, declared tax and paid taxes worth about US$20 million. Vietnam has become one of the first four countries in Southeast Asia that succeeds in implementing the national tax administration right for major the foreign suppliers.

From 2018 to July 14, revenue from e-commerce activities through organizations in Vietnam that were authorized by the contractor to pay taxes reached VND5,458 billion. The average revenue rate is 130%, the average revenue is about VND1,200 billion/year. Some foreign suppliers have paid taxes with large revenues such as: Facebook (VND2,076 billion); Google (VND2,040 billion); Microsoft (VND699 billion).