Requiring foreign companies to complete their tax returns

the gate http://etaxvn.gdt.gov.vn It is easier for foreign suppliers operating on digital platforms in Vietnam to pay their taxes. Photo: CTV / CVN

The Corporate Tax Service reports that some foreign suppliers have received their tax identification number and been guided through the process, while others are still largely absent. Since April 30, 2022, companies that have not fully fulfilled their obligations are included in a list published on the portal of the General Administration of Taxes and other communication channels.

Tax reporting obligations

1 . agoVerse January 2022, according to Government Decree No. 85, in order to provide e-commerce services in Vietnam, foreign merchants and organizations must complete the registration procedure with the Ministry of Industry and Trade within 12 months from the date of entry into force of the decree said. Under this provision, foreign merchants and organizations with websites for providing e-commerce services consist of those who have e-commerce websites under Vietnamese domain names (for example, vn); Those with websites in Vietnamese; And those with e-commerce sites log more than 100,000 transactions from Vietnam annually.

These merchants and organizations are required to register for an e-commerce business and set up a representative office in Vietnam (or appoint a representative in Vietnam). Authorized offices or representatives have responsibilities such as: cooperating with government administration agencies to prevent transactions of goods and services in violation of Vietnamese law; Fulfill the obligations to protect the interests of consumers and ensure the quality of products and goods as well as obligations to prepare prescribed tax reports.

In addition, government decree nohArticle 85 states that foreign investors who control one or more companies listed among the five largest e-commerce service companies in Vietnam, according to the list announced by the Ministry of Industry and Trade, must have an appraisal notice at the National Security Police Department.

To provide e-commerce services in Vietnam, foreign merchants and organizations must complete the registration procedure with
Ministry of Industry and Trade.
Photo: CTV / CVN

Gateway to track foreign suppliers

Last March, the General Administration of Taxes launched a portal for foreign suppliers and an electronic tax application, Etax-Mobile. Through this portal, foreign companies can also learn about e-commerce tax laws and policies, said Cao Anh Tuan, head of the General Administration of Taxation.

Finance Minister Ho Duc Phuc said the portal and app were launched following the strong development of e-commerce in Vietnam. Many large groups such as Google expect the Vietnamese digital economy to reach more than 52 billion US dollars and rank third within ASEAN in 2025. The portal allows foreign suppliers who have activities on digital platforms in Vietnam to register, advertise and pay their taxes more easily, the minister emphasized. Mr. Fook called on the concerned authorities to ensure the operation of the portal and the application around the clock, while working to upgrade services and meet the demand of foreign suppliers in applying local tax laws. He said the state bank should ask commercial banks to coordinate with the tax sector quickly to implement services.

Currently, BIDV, Vietcombank, Vietinbank, Agribank and MBBank have already provided Etax-Mobile electronic payment services. According to the Ministry of Finance, tax payments made by foreign suppliers between 2018 and 2021 amounted to more than VND 4.4 trillion.

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